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The Case for Cost-Benefit Analysis in Government

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  • The Case for Cost-Benefit Analysis in Government

    This is primarily focused on regulation, rather than legislation, but I found it very helpful as we think about whether and how government can make net positive decisions for the welfare of constituents in a climate of such extreme ideological polarization.

    Here's a pull quote, but worth reading the whole interview with Cass Sunstein in the link:

    If you could show that a certain approach to, let’s say, motor vehicle safety would save 700 lives annually and cost $8,000, it wouldn’t matter what your values are, if you’re sane. That’s a pretty good thing to do.

    Suppose you could show that an approach favored by environmental groups would cost $60 billion and only modestly contribute to public health. It would be very hard, even if you’re a very fervent progressive, to think that’s a good idea.

    On many of the issues that divide us, whether that’s clean water or endangered species or workplace safety, if we get clear on the facts, the value disagreement starts to seem uninteresting.

  • #2
    On the surface this seems like a great idea ... on the extreme ends (i.e. the examples you cited), it seems obvious. The problem is that in the middle, the positioning of the benefits will not be viewed objectively - same for the costs. There's lies, damned lies, statistics, and statistics published by the gov't. Everyone will position a given issue to align with their political position.

    It might be interesting to test out tho - at least with the issues that don't sit squarely in the middle gray zone.
    It certainly feels that way. But I'm distrustful of that feeling and am curious about evidence.

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