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Tech CEOs Tell US Gov't How To Cut Deficit By $1 Trillion

alphadogg writes "The US government can save more than $1 trillion over the next 10 years by consolidating its IT infrastructure, reducing its energy use and moving to more Web-based citizen services, a group of tech CEOs said in a report released Wednesday. The Technology CEO Council's report, delivered to President Barack Obama's National Commission on Fiscal Responsibility and Reform, also recommends that the US government streamline its supply chains and move agencies to shared services for mission-support activities. 'America's growing national debt is undermining our global competitiveness,' said the council, chaired by IBM CEO Samuel Palmisano. 'How we choose to confront and address this challenge will determine our future environment for growth and innovation.' If the cash-strapped US government enacted all the recommendations in the advocacy group's report, it could save between $920 billion and $1.2 trillion by 2020, the group said. The federal government could also reduce IT energy consumption by 25 percent, and it could save $200 billion over 10 years by using advanced analytics to stop improper payments, the report said."

17 of 311 comments (clear)

  1. This will never see the light of day by VoiceInTheDesert · · Score: 3, Insightful

    Because 1) CEOs proposed it and everyone knows they're all evil 2) The outcry of lobbyists in the industries that depend on the government wastefulness to pad their bottom line will put out the message that this is "killing private business and costing citizens their jobs."

    1. Re:This will never see the light of day by Third+Position · · Score: 3, Insightful

      Well, not necessarily... but considering what IBM has done to the states of Indiana, Texas and California, do you really want to trust Snake Oil Sam with the whole federal government?

      --
      American Third Position
      Finally, a real choice!
    2. Re:This will never see the light of day by interkin3tic · · Score: 4, Insightful

      I think it's a little more simple than that. The only things that can get done in Washington these days are the most trivial things. If Democrats back it before the elections, Republicans are going to toss it on the long list of things that they'll filibuster. After all, one trillion is a small price to pay for preventing the other guys from looking good.

      Conversely, when republicans take back one or both houses, if they propose this, I suppose there's a thin chance they won't tack on something that democrats won't hate (or just one thing, like cutting the healthcare reform OR making Bush's tax cuts permanent), and then a thin chance democrats won't fillibuster it just out of spite...

      I can say that with a straight face because it's not funny, it's just sad how unlikely either scenario is.

    3. Re:This will never see the light of day by Jeeeb · · Score: 4, Insightful

      1) CEOs proposed it and everyone knows they're all evil

      When a group of IT company CEO's propose that you spend huge amounts on new IT infrastructure to consolidate your spending, you'd do damned well to look at it with suspicion. Especially when they appear to have neglected subtracting the amount that would have to be spent to realise these savings from their final figures.

    4. Re:This will never see the light of day by Nursie · · Score: 4, Insightful

      "Ignoring the grammar (although funny), what exactly is wrong with wanting a smaller, more effective government?"

      Voting republican to try and get it. Good luck with that.

  2. Oh and by the way by joeflies · · Score: 3, Insightful

    You'll save $1.1 trillion dollars, and it'll only cost you $900B in investment! Please make check payable to IBM in capital expense dollars, not the operating expense savings that we're showing you.

    It's funny how such studies show fantastic savings, but you can't actually buy the solution with those purported savings. You can't point the finger and say "these are the people you'll fire, and these are the systems that will get turned off". And the companies offering such a solution won't accept payment with the funny money savings either.

  3. All that is stuff by geekoid · · Score: 3, Insightful

    the government is already in the process of doing.

    real forward thinking, dumb ass~

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  4. Yeah. Or just legalize marijuana. by Anonymous Coward · · Score: 3, Insightful

    Fewer lawyers, fewer inmates, fewer LEO, happier population. For bonus points, get rid of excessively generous government employee pensions.

  5. IBM CEO Chair recommends IT overhaul? by GayBliss · · Score: 5, Insightful

    Should we be suspicious when the IBM CEO thinks the U.S. needs a massive IT overhaul? I guess you could say he is qualified to know whether it can be done or not, but it would no doubt steer a lot of money to large IT corporations, such as IBM, that are large enough to handle such a large undertaking.

  6. Hell, no. by jcr · · Score: 3, Insightful

    The last thing I want to see is an efficient government. In the words of Will Rogers, "Thank heaven we don't get all the government we pay for."

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
  7. Buzzzz. by pspahn · · Score: 4, Insightful

    That summary seemed to be full of buzzwords.

    Unfortunately, part of what is keeping our country propped up is the inefficiency of bureaucracy and that it allows a lot of otherwise useless people to remain employed. If you go through and wipe out a ton of government positions there won't be anywhere else for those people to go. Though, I suppose with all those savings we could just give everyone microloans that allow them to try and at least be productive at something they are interested in.

    --
    Someone flopped a steamer in the gene pool.
  8. More than that by Anonymous Coward · · Score: 3, Insightful

    Commission on Fiscal Responsibility and Reform, also recommends that the U.S. government streamline its supply chains and move agencies to shared services for mission-support activities

    Sounds just like... well... all the other consultants. You know, the people who come in and say "Hey, we haven't ever worked in this organization but this seems inefficient, make it better and you'll get massive savings! What? No, we haven't bothered to find out whether there is actual some reason why you are doing it in the inefficient-seeming way in the first place. If we did find that out, we couldn't make this fancy recommendations..."

    I think that the first thing where government should save is this: Stop forming entities like "Commission on Fiscal Responsibility and Reform". Any entity with such a grand name can only come up with grand suggestions that don't relate to the real world in any meaningful way. The actual improvements stem from lower levels of organizations, occur over time and resemble babysteps towards the ideal solution. Massive remakes suggested by people from outside the organizations tend to fail miserably.

  9. Re:Yeah. Or just legalize marijuana. by Anonymous Coward · · Score: 4, Insightful

    Seconded. I'll also add this:
        Fine countries for each citizen found illegally residing in our country, *10 for repeat offenders.
        Open our governments R&D dept to beyond defense and license the tech out to the private sector to pay for our infrastructure, and help create a real need for scientists.
        Create regulations to stop the salary collusion that goes on in every executive board room, bring back excess taxes to discourage excessive greed.
        Reform our tax structure to pay from the bottom up, instead of top down. Make my city pay to my state, who pays to the feds.

    Or do more of the same for yourselves rich fuckers, eventually enough of us little guys will be pushed so far we won't care to make it better for ourselves. Our focus will be on how bad we can make it for you.

  10. Re:For only $500 Billion up front! by Wyatt+Earp · · Score: 3, Insightful

    The problem I see is that the US Government contracts with companies that didn't traditionally do IT, but added it because they had a history with the Government. You know, like Northrup Grumman, because when I think on-time, on-budget I think defense contractors.

  11. Re:Don't see how that would work by jackbird · · Score: 4, Insightful

    but, but, then how would the low-GDP republican-dominated flyover states siphon money from the coastal blue states to pay for their social services?

  12. Re:Don't see how that would work by hedwards · · Score: 4, Insightful

    That doesn't work. You're just shuffling chairs around. You've reduced the national debt by converting it into state debt, state debt which gets paid at a higher interest rate than federal bonds. With the added bonus that nearly all states have a balanced budget requirement.

    Which sounds good, until you realize that there are times when deficit spending is legitimate and necessary for the good of all those that are concerned. It's just when you start wasting money on things like pointless wars and tax breaks for the rich that you start to run into trouble.

    On that note, the other way we could reduce the national debt would be to go back to taxing the rich. I know that people get outraged by it, but the fact is that even if we put the tax rate on them back at say 40% it's still far lower than what it was when Reagan took office in early '81. Back thing it was 73% IIRC.

  13. Is the gov't more wasteful the private biz ? by cinnamon+colbert · · Score: 3, Insightful

    It is a commonplace that gov't is "wastefull" and "inefficient" and full of overpaid hacks,etc etc
    But doesn't this describe most private biz, at least viewed in the eyes of /. and dilbert ?
    why is private jets for CEOs no less wasteful then anything the gov't does ?
    You could go a long way with this, but I think it is a Myth that large publicly traded companies are, on avg, more efficient then the gov't and there is a lot of evidence to support the opposite posistion, eg look at he amt spent on admin in the social sec administration.
    To give an example: I work in a biotech lab. The other day, a guy comes in with a 400 dollar piece of equipment, "free". What gives ? well, "they" through out a whole pallet (maybe 50) of these jobbers cause the name of the company changed, and they didn't want to bother changing the logo on the equipment....
    yet it is gov't that gets blamed for being wasteful.
    I mean come on, this is /., is the gov't more wastefull the MS ? doesn't anyone remember the thread where there were some number of people >10 on the MS committee to figure out what was on the vista start menu ? not to implement it or anything like that, but just the list of what was on teh default menu....