BarbeloPodcast Library
NewEconomicThinking
NewEconomicThinking·June 16, 2020

Modernizing Government for Crisis and Beyond: The US Digital Response to COVID-19 and the Call for Systemic Reboot

Watch on YouTube

Summary

The podcast delves into the US Digital Response (USDR) to the COVID-19 crisis, spearheaded by Jennifer Pahlka and Tim O'Reilly. It highlights the profound underinvestment in government infrastructure and capacity over decades, particularly in data and service delivery, which became acutely apparent during the pandemic. States and municipalities faced an unprecedented surge in demand and speed requirements, exposing the fragility of outdated systems, such as COBOL mainframes for unemployment insurance. The central argument is that this crisis, while challenging, presents a critical opportunity to fundamentally "build back better" by addressing deep-seated systemic dysfunctions rather than merely applying superficial fixes.

A key distinction is drawn between incremental modernization and a complete "refactoring" or "reboot" of government, conceptualized as an operating system. Pahlka emphasizes that simply updating old code is insufficient; the complex, often convoluted program rules and regulations that govern these systems must also be rethought and simplified. Tim O'Reilly reinforces this by drawing parallels to major technological shifts, like the transition from Mac OS 9 to Mac OS X or the mobile revolution, advocating against merely creating "slightly less crufty" versions of existing systems. The "Oath" for USDR volunteers underscores a crucial nuance: integrating Silicon Valley's speed and innovation with a commitment to humility and prioritizing immediate, often basic, needs over individual ego or advanced technical aspirations.

Practically, USDR's volunteer-driven model demonstrates that rapid, impactful change is achievable, from basic tasks like VPN setup and manual data collation to more sophisticated data modeling for disease spread. The "show what's possible" ethos, originating from Code for America, is central to their approach. Actionable recommendations include substantial investment in robust digital infrastructure, simplifying program rules to alleviate administrative burden for both government administrators and citizens, and leveraging open-source principles for sharing effective solutions across jurisdictions. The discussion also extends to the necessity of economic support, such as wage continuation and isolation housing, to enable effective public health measures like self-isolation, illustrating the intricate link between public health and economic policy.

Broadly, the crisis is framed as a "gradually then suddenly" moment, where long-standing systemic failures are now undeniable, but also where new forms of cooperation and a "non-monetary economy"—exemplified by initiatives like Wikipedia, open-source software, and volunteerism—are gaining prominence. This challenges conventional economic thinking that often overlooks philanthropic or household labor as integral to "the economy." The speakers advocate for expanding the "Overton Window" to consider more radical policy shifts, such as universal basic income or a complete overhaul of tax policy, rather than incremental adjustments. Ultimately, the pandemic compels a re-evaluation of societal values, highlighting the imperative to value diverse forms of work and construct a more resilient, equitable system for collective survival and well-being.

Key Quotes

"states and municipalities and a federal government who have been under invested in for decades now not just in terms of the money that we put into the operations of our government but also an under investment in looking in there and modernizing and rebooting and questioning the status quo about how things operate"
"you can't modernize if it takes 2 decades to do it because what you have done is made a modernization plan 10 years ago that by the time it ships is no longer modern"
"it's not about me it's about what the need is and if if you get assigned and you expect to use your fanciest data science skills but the first thing you need to do is like debug a spreadsheet or get someone's VPN setup you will do that"
"if we could do it fast and in a crisis and we can do it well in a crisis why can't we do it that way in in in a time that isn't quote unquote delay declared as a crisis"
"you can't just rewrite the code if you don't actually rewrite the complicated rules and regulations that run it"
"one of the big risks we face today is we're gonna try to build back even if we try to build back better it'll be just a slightly less crufty version of what we had before rather than taking that opportunity go no no actually we're gonna we're gonna do a much deeper refactoring a much deeper restart"
"saying that you can't do it because you don't have enough money is like saying that you can't build a building because you don't have enough inches"
"this huge amount of human economic activity outside the boundaries of what we think of as quote the economy and I think it's a wonderful opportunity for us to broaden that at the break and to make more porous those boundaries"
"the new comes in gradually then suddenly you know this new world that's been building quietly new forms of cooperation new new ways of thinking about how we can work together"
"we need to finally do the right thing in order for all of us you know in some ways the virus is like a metaphor for you know forcing us to do what we should have done always"

Concepts

Themes

  • The urgency of government modernization
  • The power of volunteerism and civic tech
  • Systemic failure and the need for fundamental reform
  • Redefining economic value and activity
  • The interconnectedness of technology, policy, and societal well-being
  • Crisis as an opportunity for transformation
  • Reducing administrative burden for citizens
  • Trust and faith in government

Related to:

Economics Insights

Market Implications

  • The podcast highlights the inefficiency of current government systems, which can hinder economic recovery and exacerbate crises. The volunteer model suggests a potential for new forms of economic activity and value creation outside traditional market structures, challenging conventional market-based solutions.

Key Concepts

  • Government as an operating system, administrative burden, non-monetary economy, build back better, Overton Window, Schumpeterian destruction, digital transformation, safety net effectiveness.

Data Cited

  • New Jersey small business loan program (3,000 applications in years vs. 30,000 in a day), 160+ USDR projects completed, 5,000 volunteers for USDR (200 placed), 20 years to modernize a child welfare system.

Practical Applications

  • Rapid deployment of digital tools for government services (e.g., eligibility wizards, volunteer matching platforms), data modeling for disease spread, simplifying benefit application processes, leveraging open-source code for municipal solutions.

Risks Mentioned

  • Risk of merely patching old systems ('slightly less crufty version') instead of fundamental refactoring, missing new opportunities (like Microsoft missing mobile), erosion of trust in government due to poor service delivery, economic devastation for families if self-isolation is not supported.

Policy Recommendations

  • Investment in government digital infrastructure, simplification of program rules and regulations, rethinking tax policy, exploring universal basic income, providing economic support for public health measures (wage continuation, isolation housing).

Similar Episodes