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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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