Director of the Congressional Budget Office Peter Orszag and director of the White House Domestic Policy Council John Bridgeland both left office flabbergasted by how blindly the federal government spends money. In the Atlantic, they propose that the “moneyball” formula employed in baseball—whereby data-intensive analysis of what skills players actually contribute most replaced traditional beliefs and biases—can be readily applied to tame the federal budget.
MILAN – In a recent set of studies, Carmen Reinhart and Kenneth Rogoff used a vast array of historical data to show that the accumulation of high levels of public (and private) debt relative to GDP has an extended negative effect on growth. The size of the effect incited debate about errors in their calculations. Few, however, doubt the validity of the pattern. Read more »