Oren Cass, chief economist at American Compass and expert in government efficiency, dives into the inner workings of the Department of Government Efficiency (DOGE). He discusses the hurdles in firing federal employees and innovative ways to save taxpayer money. Oren reveals the dynamics between West Coast and East Coast approaches within DOGE and emphasizes the importance of ambitious goals in federal contracting. His insights into balancing deregulation with state investment highlight the crucial role government can play in fostering innovation.
The inefficiency of federal hiring processes hinders acquiring qualified talent, necessitating reforms that emphasize merit and competence in staffing.
Enhancing government efficiency requires not just cutting bureaucracy, but investing in state capacity and innovative practices to improve overall services.
Deep dives
Revamping Hiring and Firing Practices
The federal government's hiring and firing processes are currently inefficient, often resulting in a workforce that lacks the necessary talent and flexibility. Unlike the private sector, which can fire employees relatively easily, federal regulations protect those within the system, making it challenging to let go of underperforming staff. A specific example highlighted was that of a young talent, Jack Cable, who excelled in a coding competition but was deemed unqualified for a Pentagon position due to rigid hiring criteria. Addressing these issues requires reforming hiring practices alongside establishing an effective firing process that prioritizes merit and competence.
Defining the Goals of Government Efficiency
The push for government efficiency spans various areas including cutting bureaucracy, reducing taxpayer costs, and improving state capacity. While some proponents believe drastic cuts could yield significant savings, it is crucial to recognize that such savings may have a minimal impact on the federal budget overall. Current spending is largely driven by entitlements like Social Security, Medicare, and defense, and simply cutting headcount may not equate to meaningful efficiency gains. Therefore, the focus should shift towards enhancing the quality of government services rather than merely reducing numbers.
Balancing Recruitment and Retention Strategies
A comprehensive approach to government efficiency must consider both recruitment of talented individuals and retention of valuable employees. While increasing pay for federal employees is politically sensitive, strategies like hiring on temporary contracts through the Intergovernmental Personnel Act can attract skilled professionals. Additionally, employing batch hiring for technical roles can streamline the recruitment process notably. The challenge remains to create a work environment that compensates workers fairly, without further widening the pay gap with the private sector, especially in key areas like technology.
Building State Capacity Alongside Deregulation
While enhancing efficiency often involves cutting red tape, it is equally important to recognize the value of building state capacity through investment in research and development and innovative government practices. Initiatives like Operation Warp Speed demonstrate how strategic partnerships can drive successful outcomes in fields like healthcare and technology. The federal government possesses tools such as Other Transactions Authority that can enable more flexible and effective procurement processes, yet these tools remain underutilized due to bureaucratic inertia. Fostering an environment that embraces innovation and investment will better position government to tackle future challenges.
Happy New Year! I went on the American Compass podcast last month to talk to American Compass chief economist Oren Cassabout government efficiency, state capacity, and what Trump’s Department of Government Efficiency (DOGE) is likely to tackle.
We discuss:
* Why is it so hard to fire federal employees?
* Off-the-wall ways to save government money
* The West Coast meets East Coast dynamic in DOGE
* The secret to a successful blue ribbon commission
Notes: This interview was originally published here. When used the phrase “fired for cause,” when I should have said “fired for performance.” SMEQA stands for Subject Matter Expert Qualification Assessments.
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.statecraft.pub
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