Published March 21, 2026 | Version 1.0
Working paper Open

United States Efficiency Audit

Authors/Creators

  • 1. Institute for Accelerated Medicine

Description

Website: https://manual.warondisease.org/knowledge/appendix/us-efficiency-audit.html

Abstract: This report applies systems engineering methodology to quantify allocative inefficiency in U.S. governance across four dysfunction categories: direct spending waste, compliance burden on the private sector, policy-induced GDP loss, and system inefficiency. Using Monte Carlo simulation across ten components with OECD benchmarking, we estimate an aggregate efficiency gap of \$4.9T (95% CI: \$3.62T-\$6.5T) annually and recoverable capital of \$2.45T (95% CI: \$1.81T-\$3.25T) if U.S. performance converges toward OECD median efficiency. This categorization distinguishes direct budget waste from broader economic dysfunction, each requiring different solution pathways. We also translate the efficiency gap into QALY and VSL-equivalent welfare terms for interpretability. For global ceiling context, the Optimal Governance Trajectory reaches 56.7x (95% CI: 19.3x-304x) the Earth baseline after 20 years, raises average income to \$1.16M (95% CI: \$395K-\$6.22M) versus \$20.5K on the status-quo path, reaches \$10.7 quadrillion (95% CI: \$3.64 quadrillion-\$57.2 quadrillion) in total output, and recovers roughly \$101T (95% CI: \$83.3T-\$191T)/year in suppressed value ([The Political Dysfunction Tax](https://political-dysfunction-tax.warondisease.org)).

Summary: Systems audit estimating an annual U.S. efficiency gap of \$4.9T, with \$2.45T recoverable at OECD-median performance across direct spending waste, compliance burden, policy-induced GDP loss, and system inefficiency.

Notes

Category: Academic Paper, Public Policy, Economics, Systems Engineering | Genre: Public Finance, Systems Analysis, Policy Analysis, Economics | Target Audience: Researchers, Policy Makers, Economists, Public Finance Analysts

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