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A White House Seized By The Animal Spirits
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 Obama
White House Budget Director Peter Orszag is a numbers guy, a propeller
head as President Obama would say. But as David Von Drehle and I write
in this week's print version of TIME,
Orszag has been spending his time recently reading not about
spreadsheets, but about psychology. In particular, he has been reading
a new book
by the economists George Akerlof and Robert Shiller called "Animal
Spirits: How Human Psychology Drives The Economy, and Why It Matters
For Global Capitalism."The book's thesis is that modern economics has undervalued the role of
the spirits--psychological phenomena like confidence, story telling,
fairness and corruption--in shaping economic patterns. The root word of
credit, they point out, is the Latin "credo," meaning "I believe." A credit crisis, therefore, can be understood as a crisis of belief.
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Electronic Medical Records: Will They Really Cut Costs
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If the cheerleaders — including the one in the Oval Office — are right,
computerized medical records will save us all: save jobs, save money,
reduce errors, and transform health care as we know it. In a January
speech, President Obama
evoked the promise of new technology: This will cut waste, eliminate
red tape and reduce the need to repeat expensive medical tests," he
said, and he has proposed investing $50 billion over the next five
years to help make it happen.Any doctor will tell you the advantages of having lots of patient data
on computers: it helps us avoid redundant tests, gather huge amounts of
data for research, screen automatically for drug interactions, all with
no problems with our famously illegible handwriting. I would be happy
if every patient could hand me a digital file of everything about him;
it could really save time on first visits. But against our government's
push to get all patients' records computerized we must keep in mind
there will be a cost to this — far beyond the billions to be spent
setting it up. Many of us in medicine are concerned that the greatest
cost will be in the quality of medicine that we practice.
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