Early cost estimates of government projects tend to be optimistic, but does that mean an ambitious project should be scrapped when its price increases?
The Washington Post reports on the political storm surrounding continued funding of the Webb Space Telescope, our planned next-generation instrument:
In 2006, NASA estimated that Webb would cost $2.4 billion and could launch in 2014. In 2008, the price tag rose to $5.1 billion. A congressionally mandated report released last year found that NASA had underestimated costs and mismanaged the project. This summer, NASA said it had already spent $3.5 billion on the project and needed a total of $8.7 billion to launch in 2018.
Against critics who say the gap has been growing and the project should be shut down,
[Edward J.] Weiler [retired head of NASA space sciences] said estimating costs on a project that's never been built before is difficult. "You bid optimistically. That's not just a problem with the James Webb Space Telescope. We see it at NASA all the time; you see it at defense contractors. I would argue -- and I'm not making excuses here -- that [the budget overrun] is a product of the way we do business in America."
Top astronomers said early estimates were never realistic.
"People were used to lowballing," said Garth Illingworth, an astronomer at the University of California at Santa Cruz. "Congress has been part of the game."
The much-acclaimed Hubble Space Telescope, Weiler reminded critics, was also way over budget. And that very point is reflected in the new book by the Nobel Laureate psychologist Daniel Kahneman, Thinking, Fast and Slow, in the chapter dealing with what he and his colleague Amos Tversky called the Planning Fallacy: using best-case scenarios and not reflecting actual costs of similar projects. Poster child: the Scottish Parliament building in Edinburgh, originally budgeted in 1997 at £40 million and finished only in 2004 at a cost of £431 million.
But would we always be better off by following Dr. Kahneman's wise counsel? Shouldn't we look the future squarely in the eye and not fool ourselves about costs? Mark Twain, who virtually bankrupted himself backing an ultimately unworkable typesetter, might have agreed.(Or maybe not; he kept backing esoteric projects like a Polish-Austrian inventor's carpet-pattern machine.) But Dr. Illingworth's remarks suggest there's something else at work, a tacit agreement to keep original estimates deliberately low. Regarding the Scottish Parliament and other architectural megaprojects, the Danish-born program management guru Bent Flyvbjerg believes such enterprises are more often than not Machiavellian charades.Of course that leaves open the question of whether some notorious cases like the Sydney Opera House may turn out to have been worth the deception or self-deception, while others like New Jersey's Xanadu have at least so far been mere money pits.
Scientific instruments are different from monuments; even ardent Scottish nationalists might not claim that the new building will give their country better laws, while the Webb instrument, like the Hubble, might change our view of the universe and our place in it, and yield the surprising economic benefits that expensive pure science (and some military cost overruns) often do. The question is whether the benefit of greater realism in the majority of cases would be offset by the loss of benefits if legislators ruled out all projects that by Kahneman's criteria were likely to produce substantial cost overruns. Sometimes coping with unexpected difficulties produces surprising new solutions, a phenomenon that the economist Albert O. Hirschman has called the Hiding Hand.
Fiscal realism can also have unintended consequences. Cancellation of the Superconducting Super Collider in 1993, it has often been observed, helped drive legions of physicists from big science to even bigger finance, where they developed the computer infrastructure behind the trading that is now the target of Occupy Wall Street. The NASA executive Dr. Charles Beichman wrote tongue-in-cheek to the Financial Times two years ago that it's cheaper to pay scientists and engineers to work on accelerators and telescopes than to turn them loose writing derivatives.
So, on balance I would suggest implementing Dr. Kahneman's procedure, but (in the case of potentially productive investments) looking not just at all the potential additional costs but at the kinds of benefits, including spinoffs, that previous big projects have created. I find it hard to believe that in the context of the whole Federal budget, the Web Space Telescope would not survive that kind of realism.
Edward Tenner is a historian of technology and culture, and an affiliate of the Center for Arts and Cultural Policy at Princeton's Woodrow Wilson School. He was a founding advisor of Smithsonian's Lemelson Center.
In an interview, the U.S. president ties his legacy to a pact with Tehran, argues ISIS is not winning, warns Saudi Arabia not to pursue a nuclear-weapons program, and anguishes about Israel.
On Tuesday afternoon, as President Obama was bringing an occasionally contentious but often illuminating hour-long conversation about the Middle East to an end, I brought up a persistent worry. “A majority of American Jews want to support the Iran deal,” I said, “but a lot of people are anxiety-ridden about this, as am I.” Like many Jews—and also, by the way, many non-Jews—I believe that it is prudent to keep nuclear weapons out of the hands of anti-Semitic regimes. Obama, who earlier in the discussion had explicitly labeled the supreme leader of Iran, Ayatollah Ali Khamenei, an anti-Semite, responded with an argument I had not heard him make before.
“Look, 20 years from now, I’m still going to be around, God willing. If Iran has a nuclear weapon, it’s my name on this,” he said, referring to the apparently almost-finished nuclear agreement between Iran and a group of world powers led by the United States. “I think it’s fair to say that in addition to our profound national-security interests, I have a personal interest in locking this down.”
New research confirms what they say about nice guys.
Smile at the customer. Bake cookies for your colleagues. Sing your subordinates’ praises. Share credit. Listen. Empathize. Don’t drive the last dollar out of a deal. Leave the last doughnut for someone else.
Sneer at the customer. Keep your colleagues on edge. Claim credit. Speak first. Put your feet on the table. Withhold approval. Instill fear. Interrupt. Ask for more. And by all means, take that last doughnut. You deserve it.
Follow one of those paths, the success literature tells us, and you’ll go far. Follow the other, and you’ll die powerless and broke. The only question is, which is which?
Of all the issues that preoccupy the modern mind—Nature or nurture? Is there life in outer space? Why can’t America field a decent soccer team?—it’s hard to think of one that has attracted so much water-cooler philosophizing yet so little scientific inquiry. Does it pay to be nice? Or is there an advantage to being a jerk?
The Islamic State is no mere collection of psychopaths. It is a religious group with carefully considered beliefs, among them that it is a key agent of the coming apocalypse. Here’s what that means for its strategy—and for how to stop it.
What is the Islamic State?
Where did it come from, and what are its intentions? The simplicity of these questions can be deceiving, and few Western leaders seem to know the answers. In December, The New York Times published confidential comments by Major General Michael K. Nagata, the Special Operations commander for the United States in the Middle East, admitting that he had hardly begun figuring out the Islamic State’s appeal. “We have not defeated the idea,” he said. “We do not even understand the idea.” In the past year, President Obama has referred to the Islamic State, variously, as “not Islamic” and as al-Qaeda’s “jayvee team,” statements that reflected confusion about the group, and may have contributed to significant strategic errors.
A scholar’s analysis of American culture presumes too much.
Last week, Gawkerinterviewed Robin DiAngelo, a professor of multicultural education at Westfield State University. She discussed aspects of her thinking on whiteness, which are set forth at length in her book, What Does it Mean to be White? I’ve ordered the book.
Meanwhile, her remarks on police brutality piqued my interest. Some of what Professor DiAngelo said is grounded in solid empirical evidence: blacks and Hispanics are disproportionately victimized by misbehaving police officers; there are neighborhoods where police help maintain racial and class boundaries. And if our culture, which she calls “the water we swim in,” contained fewer parts racism per million, I suspect that police brutality would be less common.
Advocates say that a guaranteed basic income can lead to more creative, fulfilling work. The question is how to fund it.
Scott Santens has been thinking a lot about fish lately. Specifically, he’s been reflecting on the aphorism, “If you give a man a fish, he eats for a day. If you teach a man to fish, he eats for life.” What Santens wants to know is this: “If you build a robot to fish, do all men starve, or do all men eat?”
Santens is 37 years old, and he’s a leader in the basic income movement—a worldwide network of thousands of advocates (26,000 on Reddit alone) who believe that governments should provide every citizen with a monthly stipend big enough to cover life’s basic necessities. The idea of a basic income has been around for decades, and it once drew support from leaders as different as Martin Luther King Jr. and Richard Nixon. But rather than waiting for governments to act, Santens has started crowdfunding his own basic income of $1,000 per month. He’s nearly halfway to his his goal.
The big change: None of the officers was indicted for false imprisonment. That’s notable, because Mosby emphasized during her initial statement that Gray’s very arrest was illegal, saying officers had no basis for detaining him.
Even for people with generous insurance plans, a trip to an in-network doctor can result in thousands of dollars in unexpected charges. Can anything be done?
It shouldn’t take a Harvard expert in health policy to understand a doctor’s bill. But sometimes, it does. In August of last year, Liz was a medical student whose doctor found a lump on her tonsils. Her primary-care physician referred her to an in-network ear-nose-and-throat specialist.
Liz, who asked to go by her first name, expected the usual $20 copay. Instead, she was charged $219.90—wrongly, in her view—for separate physician and facility fees. Under the terms of her plan, Liz says, she should not have been responsible for those charges. After a polite letter to her (“Thank you for your recent grievance...”), Anthem Blue Cross upheld the charges.
A few months later, Liz convinced Anthem to wipe much of the bill. But here’s the thing: By that time, she was studying health policy as a master’s student at Harvard. “It took me hours of going over the insurance policy and hours of arguing with the insurance company over that insurance pamphlet,” she said. (Later, Liz realized she had been doubly insured that month—her Harvard insurance had already kicked in—and she got the other plan to take care of the remainder of the balance.)
The former secretary of state jettisons sweeping rhetoric, and focuses on specific policies.
Hillary Clinton has been an official candidate for president for five weeks, and she still hasn’t done the thing most candidates do on day one: given a speech laying out her vision for America. Nor is she planning on doing so anytime soon. Politicoreports that Hillary’s “why I’m running for president,” speech, initially scheduled for May, has now been delayed until June, or even later.
There’s a reason for that: The speech is unlikely to be very good. Soaring rhetoric and grand themes have never been Hillary’s strengths. That’s one reason so many liberals found her so much less inspirational than Barack Obama in 2008. And it’s a problem with deep roots. In his biography, A Woman in Charge, Carl Bernstein describes Hillary, then in law school, struggling to articulate her generation’s perspective in an address to the League of Women Voters. “If she was speaking about a clearly defined subject,” Bernstein writes, “her thoughts would be well organized, finely articulated, and delivered in almost perfect outline form. But before the League audience, she again and again lapsed into sweeping abstractions.”