How our flawed debates about cost prevent us from spending public money wisely

Barely a news cycle goes by these days without someone in public office saying ‘We can’t afford that,’ while at the same time defending their favorite budget priorities and tossing around mind-numbingly large cost figures in the billions and trillions of dollars. Those debates can seem very cynical, and of course Oscar Wilde famously defined a cynic as a person who knows the cost of everything but the value of nothing. But Harvard Kennedy School Senior Lecturer Linda Bilmes says things are even worse than that—not only are we not having discussions based on value, our understanding of what projects and policies actually cost is fundamentally flawed. A former CFO of the US Commerce Department and an internationally known expert in public budgeting and finance, Professor Bilmes has made it her mission to change the conversation about cost in the public sphere, and she’s helped identify the true costs of everything from America’s wars in Iraq and Afghanistan to our National Parks to the automobile economy in Massachusetts. She joins us to talk about her efforts to improve both the discussions and the decisions that are made about public money.