$31 million represents .004% of the benefits disbursed annually by the SSA. In other words, the agency is already extremely good at knowing who’s alive and who’s no more. Getting even better at that distinction, in order to eliminate those last few mistakes, might be expensive. If we’re going to count utils, we shouldn’t be asking, “Why are we wasting the taxpayers’ money?” but “What’s the right amount of the taxpayers’ money to be wasting?” To paraphrase Stigler: if your government isn’t wasteful, you’re spending too much time fighting government waste.
