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Federal Resource Allocation Efficiency Audit

A Systems Analysis of Recoverable Misallocation in U.S. Federal Spending

Engineering-style efficiency analysis quantifying $2.27-3.47 trillion in annual allocation losses across defense, healthcare, justice, regulatory, and subsidy subsystems, with OECD benchmark comparisons.

Author

Affiliation

Mike P. Sinn

Decentralized Institutes of Health

Abstract

This report applies systems engineering methodology to quantify allocative inefficiency in U.S. federal spending. We define government efficiency as the rate of converting fiscal inputs into two terminal outcomes: after-tax real median income growth and median healthy life years. Analysis reveals the U.S. system operates at 52-67% efficiency versus 75-85% for OECD benchmark nations. Using Monte Carlo simulation across five subsystems (defense, healthcare, justice, regulatory/tax, and subsidies), we estimate an Aggregate Efficiency Gap of $1.85-3.47 trillion annually (P5-P95 range, mean $2.27T). Closing this gap to OECD median levels would recover approximately $1.5 trillion per year. The economic equivalent of current inefficiency equals 22.7 million QALYs or 165,700 VSL-equivalents annually.

Keywords

allocative efficiency, systems analysis, federal spending, defense spending, healthcare administration, regulatory burden, OECD benchmarking, Monte Carlo simulation

Executive Summary

This audit applies engineering systems analysis to federal resource allocation. The core finding:

A comparative bar chart showing the efficiency rating gap between the U.S. and OECD benchmarks, highlighting the $2.27 trillion annual efficiency gap and the equivalent human cost in quality-adjusted life years.

Metric	U.S. System	OECD Benchmark	Gap
Efficiency Rating	52-67%	75-85%^a	18-33 pp
Annual Efficiency Gap	$1.85-3.47T (P5-P95)	N/A	Mean: $2.27T
Recoverable Capital	~$1.5T/year	N/A	if closed to OECD median
Human Cost (economic equivalent)	22.7M QALYs	N/A	165,700 VSL-equivalents

^a OECD benchmark derived from comparative per-capita spending analysis: peer nations (Germany, France, UK, Canada, Australia) achieve comparable median income growth and HALE outcomes at 10-15 percentage points lower government spending as share of GDP.

Interpretation Note

The “human cost” figures are economic equivalents, not epidemiological mortality counts. Dividing the efficiency gap by VSL ($13.7M) or QALY threshold ($100K) yields a measure of foregone welfare, not literal deaths prevented.

The efficiency gap represents capital that could fund the 1% Treaty ($27.2B/year) 55 times over, or 10x current global disease R&D spending.

A proportional comparison chart illustrating the magnitude of the efficiency gap relative to the $27B 1% Treaty annual funding and current global disease R&D spending.

System Specifications

Designed Function

A flowchart illustrating the conversion process where fiscal inputs like tax revenue and compliance burdens are transformed by the federal government into terminal outcomes of median income growth and healthy life years.

The federal government’s designed function is to convert fiscal inputs (tax revenue + compliance burden) into citizen welfare. We measure this conversion efficiency using two terminal outcomes:

After-tax real median income growth: measures economic welfare delivery
Median healthy life years (HALE): measures health and longevity delivery

Why Two Metrics Are Sufficient

These two outputs capture all upstream factors that matter:

Upstream Factor	Manifests in Income	Manifests in Healthy Life
Security/Safety	Crime costs, property loss	Violence, injury, chronic stress
Environment	Disaster costs, remediation	Respiratory disease, cancer
Freedom	Economic choice, mobility	Health decisions, reduced stress
Social Trust	Lower transaction costs	Mental health, social support
Education	Human capital, productivity	Health literacy
Infrastructure	Productivity, opportunity	Access to care, environmental health

These are not omissions. They are upstream variables that manifest in terminal outcomes. Measuring income + health implicitly captures everything that affects citizen welfare.

A conceptual diagram showing how multiple upstream factors like security, environment, and education funnel into two terminal outcomes: Income and Healthy Life.

Input-Output Measurement

Total System Input: ~$6.75 trillion annually

Federal revenue: $4.9T¹⁴²
State/local revenue attributable to federal mandates: ~$1.3T¹⁴³
Compliance burden (tax, regulatory): ~$550B^17,144

Efficiency Metric: Output per dollar of input, benchmarked against OECD peer nations with comparable development levels.

A breakdown of the $6.75 trillion total system input, showing the proportional distribution of federal revenue, state and local mandates, and regulatory compliance burdens.

Methodology

Engineering Loss Categories

We categorize resource losses using engineering terminology rather than political language:

Loss Category	Definition	Examples
Friction Losses	Administrative overhead exceeding minimum necessary	Healthcare billing complexity, tax compliance burden
Leakage	Fraud, improper payments, unverified expenditure	Medicare improper payments, unaudited DoD assets
Parasitic Load	Bureaucracy maintaining itself rather than serving function	Redundant agencies, regulatory capture
Transmission Loss	Efficiency loss in federal → state → local → citizen transfer	Grant administration overhead, unfunded mandates
Idle/Standby Loss	Capacity maintained but unused	Excess military bases, redundant weapons systems
Conversion Inefficiency	Policy intent failing to achieve stated outcome	Drug interdiction not reducing use
Negative Work	Policies producing net harm rather than benefit	Incarceration increasing recidivism

Aggregate Efficiency Gap Calculation

The Aggregate Efficiency Gap (AEG) sums losses across all categories:

\[\text{AEG} = \sum_{i} \text{Friction}_i + \sum_{j} \text{Leakage}_j + \sum_{k} \text{Parasitic}_k + \sum_{l} \text{Transmission}_l + \sum_{m} \text{Idle}_m + \sum_{n} \text{Conversion}_n + \sum_{o} \text{Negative}_o\]

We employ Monte Carlo simulation to generate confidence intervals, recognizing uncertainty in loss estimates (particularly where data opacity exists, such as the DoD’s inability to audit 61% of assets).

A structural diagram showing the seven categories of efficiency loss aggregating into the AEG, with visual indicators for the high uncertainty (61%) addressed by Monte Carlo simulation.

Methodological Caveat: Overlap and Double-Counting

While subsystem losses are estimated independently, some interdependence exists. For example, housing cost burdens affect health outcomes via stress; incarceration costs overlap with drug enforcement spending. This analysis treats categories as largely additive, which may modestly overstate total losses. However, excluded categories (state/local inefficiency, implicit subsidies, behavioral effects) likely offset this bias.

Valuation Standards

A comparison showing the massive scale difference between the $13.7 million Value of Statistical Life (VSL) and the $50,000–$100,000 Quality-Adjusted Life Year (QALY) standards.

Value of Statistical Life (VSL): $13.7 million (US Department of Transportation)¹⁴⁵
Quality-Adjusted Life Year (QALY): $50,000-$100,000 (medical cost-effectiveness standard)¹⁴⁶

Subsystem Audit: Defense

The Department of Defense operates as the largest discretionary expenditure node, with annual spending of approximately $900 billion¹⁴⁷. Current spending exceeds the next nine nations combined¹⁴⁸.

A comparison of the $900 billion U.S. defense budget against the combined military expenditures of the next nine highest-spending nations.

Loss Category: Leakage (Audit Failure)

In November 2024, the Pentagon failed its seventh consecutive audit¹⁴⁹. The DoD was unable to account for 61-63% of its $3.8 trillion in assets¹⁵⁰, approximately $2.5 trillion in property, equipment, and inventory with unknown status.

A breakdown of the Department of Defense’s $3.8 trillion asset pool showing the 61-63% ($2.5 trillion) portion that is currently unaccounted for, leading to an estimated $125 billion in inventory shrinkage.

The mechanism: fragmented logistics systems where contractors record inventory data, creating principal-agent misalignment¹⁵¹. Without verified asset ledgers, the DoD regularly purchases parts it already owns but cannot locate.

Estimated leakage: Assuming 5% inventory shrinkage on unaccounted assets = $125 billion stock, plus ongoing logistics inefficiency.

Loss Category: Conversion Inefficiency (F-35 Program)

The F-35 program exemplifies “concurrency”: producing aircraft before design completion. Results:

Lifetime sustainment cost: increased from $1.1T (2018) to $1.58T (2023)¹⁵²
Availability rates: declining despite 44% cost increase¹⁵²
2024 delivery delays: average 238 days late¹⁵³

Estimated conversion inefficiency: $15-20 billion annually in defect remediation and unflown flight hours.

A comparison of rising F-35 lifetime sustainment costs against declining availability rates, highlighting the $15-20 billion annual loss from conversion inefficiency.

Loss Category: Idle/Standby (Overseas Basing)

The U.S. maintains approximately 750 military bases in over 80 countries¹⁵⁴, architecture designed for 1945 geopolitics.

A bar chart comparing the current $55-80 billion annual cost of overseas base maintenance against the projected $75 billion in potential annual savings from transitioning to an Active Denial strategy.

Direct base maintenance: $55-80 billion annually¹⁵⁴
Personnel premium: $10,000-$40,000 per person above domestic stationing¹⁵⁵

The Quincy Institute estimates that shifting to “Active Denial” strategy (asymmetric defense via drones, missiles, mines rather than power projection platforms) could achieve equivalent deterrence at $75 billion annual savings by 2035¹⁵⁶.

Loss Category: Parasitic (Strategic Misalignment)

The “Overmatch” doctrine requires dominance in every theater simultaneously, creating unlimited spending requirements. The Congressional Budget Office projects defense costs will rise to $965 billion by 2039¹⁵⁷, driven by this refusal to rationalize legacy commitments. A rational optimization would focus on:

Robust nuclear deterrent (submarine-based leg sufficient)
Naval denial capabilities
Asymmetric defense posture

Cutting the redundant ICBM leg and reducing bomber procurement would save $15-20 billion annually¹⁵⁸.

A comparison of the projected $965 billion defense budget against the potential $15-20 billion in annual savings from strategic nuclear cuts.

Defense Subsystem Summary

Loss Category	Low Estimate	Mean	High Estimate
Leakage (audit)	$50B	$75B	$100B
Conversion (F-35)	$15B	$17B	$20B
Idle (bases)	$40B	$55B	$75B
Parasitic (strategy)	$50B	$63B	$105B
Total	$100B	$210B	$300B

Subsystem Audit: Healthcare Administration

U.S. healthcare consumes ~18% of GDP ($5.3 trillion)¹⁵⁹ yet delivers health outcomes inferior to peer nations spending 10-11% of GDP¹⁶⁰. The delta is not care quality. It is administrative friction.

A comparison of healthcare spending as a percentage of GDP between the U.S. (18%) and peer nations (10-11%), highlighting the financial discrepancy linked to administrative overhead.

Loss Category: Friction (Administrative Overhead)

The U.S. spends approximately $1,000 more per person on administrative costs than the average wealthy OECD country¹⁶⁰. With 335 million population:

Administrative excess: ~$335 billion annually

A 2020 study found U.S. administrative spending at 34.2% of health expenditures versus 17% in Canada¹⁶¹. This overhead does not improve outcomes. It diverts resources from care to paperwork.

Comparison of healthcare administrative costs showing the U.S. spending 34.2% of expenditures on overhead versus 17% in Canada, alongside the resulting $335 billion in annual excess spending.

Loss Category: Leakage (Medicare Advantage Upcoding)

Medicare Advantage functions as a subsidy mechanism via “upcoding”: making patients appear sicker than they are to increase capitated payments.

A comparison of estimated Medicare Advantage overpayments, highlighting the $83 billion annual cost for 2024 against a $1.2 trillion ten-year projection and $7.5 billion in specific fraud categories.

MedPAC estimate: $83 billion overpayment in 2024¹⁶²
10-year projection: $1.2 trillion cumulative overpayment¹⁶³
Health Risk Assessment fraud: $7.5 billion from chart reviews generating diagnoses with no corresponding treatment¹⁶⁴

Loss Category: Leakage (Improper Payments)

GAO estimates $162 billion in improper payments government-wide in 2024, with 75% concentrated in Medicare and Medicaid¹⁶⁵.

A comparison of government improper payment rates, specifically highlighting the 75% concentration in Medicare and Medicaid against significantly lower private sector fraud benchmarks.

Medicare Fee-for-Service: ~7.4% improper payment rate
Medicaid: often higher

Private financial networks operate with fraud rates orders of magnitude lower.

Healthcare Subsystem Summary

Loss Category	Low Estimate	Mean	High Estimate
Friction (admin)	$250B	$335B	$400B
Leakage (MA upcoding)	$60B	$83B	$100B
Leakage (improper payments)	$80B	$120B	$150B
Total	$300B	$450B	$600B

Subsystem Audit: Justice and Prohibition

The drug prohibition regime and resulting incarceration system represent sustained policy failure: intervention that fails to achieve stated objectives while generating substantial negative externalities.

Loss Category: Conversion Inefficiency (Drug Prohibition)

The federal drug control budget for 2024: nearly $45 billion¹⁶⁶. Total expenditure since 1971: over $1 trillion¹⁶⁷.

A comparison of massive federal drug control spending ($1 trillion cumulative, $45 billion annual) against stagnant usage rates and the shift toward higher-potency drugs like fentanyl under the Iron Law of Prohibition.

Outcome: Drug use rates unchanged or increased¹⁶⁸. The market has innovated toward more potent compounds (fentanyl). This is a direct consequence of the “Iron Law of Prohibition,” where interdiction shifts production to higher-value-per-weight products.

Despite state legalization, federal marijuana enforcement continues at approximately $3.6 billion annually¹⁶⁹, pure deadweight loss on activity that is economically productive in legal jurisdictions.

Loss Category: Negative Work (Mass Incarceration)

The U.S. incarcerates at rates unmatched in the developed world, removing prime-age workers from the labor force and degrading human capital.

Direct system costs: $80.7 billion in public corrections expenditure¹⁷⁰

Economic burden estimates:

FWD.us: $348 billion annually (lost wages, family costs)¹⁷¹
Comprehensive burden (including health effects, child welfare): $1 trillion annually¹⁷²

Lost lifetime earnings per incarcerated person: approximately $500,000¹⁷⁰. The system fails at rehabilitation. High recidivism rates mean the “correctional” investment yields defective output.

Loss Category: Leakage (Civil Asset Forfeiture)

Civil asset forfeiture allows property seizure without criminal conviction. FY 2024 Treasury Forfeiture Fund: $2.26 billion processed¹⁷³.

This mechanism incentivizes revenue-generating enforcement over public safety, introduces property rights uncertainty, and constitutes wealth transfer from productive activity to bureaucracy.

Justice Subsystem Summary

Loss Category	Low Estimate	Mean	High Estimate
Conversion (drug enforcement)	$40B	$48B	$55B
Negative work (incarceration)	$80B	$280B	$500B
Leakage (forfeiture)	$2B	$2B	$3B
Total	$100B	$280B	$500B

Note: The 6x range ($80B-$500B) for incarceration reflects genuine uncertainty. The low bound captures only direct corrections spending; the high bound includes comprehensive economic burden estimates (lost wages, family disruption, intergenerational effects). Different methodologies yield dramatically different figures.

Subsystem Audit: Regulatory and Tax Compliance

The compliance burden (time and resources consumed meeting federal requirements) represents a substantial unrecorded subtraction from national output.

A comparison of the escalating economic impacts of mass incarceration, contrasting the $80.7 billion direct public cost against the $1 trillion comprehensive social and economic burden.

Loss Category: Friction (Tax Compliance)

Americans spend 7.1-7.9 billion hours annually complying with the tax code¹⁴⁴.

A comparison showing that U.S. tax compliance costs ($546 billion) exceed total corporate income tax revenue, representing 1.9% of national GDP.

Total compliance cost: $546B (95% CI: $450B-$650B) annually (Tax Foundation estimate)^17,144

This is approximately 1.9% of GDP, exceeding total corporate income tax revenue. The labor produces nothing but compliance documentation.

Benchmark comparison: Thirty-six countries use “Return-Free Filing” where governments pre-fill returns with data already in their possession¹⁷⁴. The U.S. tax preparation lobby (Intuit, H&R Block) has successfully lobbied to prevent this simplification¹⁷⁵, effectively taxing Americans an additional $500+ billion in lost time and fees to protect a rent-seeking industry.

Loss Category: Friction (Housing/Zoning Misallocation)

Local zoning regulations artificially restrict housing supply in high-productivity cities, preventing labor mobility to productive clusters.

A visualization of the annual GDP loss attributed to housing misallocation, showing a central estimate of $1.40 trillion within a $1 trillion to $2 trillion confidence interval range.

Spatial misallocation cost: Even conservative estimates point to 2% GDP loss = $1.40T (95% CI: $1T-$2T) annually^176,177.

Note: The original Hsieh-Moretti (2019) estimate of 36% GDP loss was subsequently revised downward by the authors. The 2% figure used here represents a conservative lower bound; even critics of the original methodology acknowledge significant misallocation costs from zoning restrictions.

Federal policy subsidizes this dysfunction via mortgage interest deductions and infrastructure grants without upzoning requirements.

Loss Category: Idle (NEPA Permitting Delays)

The National Environmental Policy Act forces infrastructure projects into multi-year review. Average Environmental Impact Statement: 4.5 years.

A visualization illustrating the 4.5-year average NEPA review timeline and the resulting $100-140 billion in annual economic losses, highlighting the disproportionate impact on clean energy projects.

Delay costs: $100-140 billion annually in lost returns and capital efficiency¹⁷⁸.

NEPA creates a “Green Paradox”: delaying clean energy projects (transmission, wind, geothermal) more than fossil fuel projects, undermining stated policy goals.

Loss Category: Parasitic (Jones Act)

A comparison chart showing the $1.2 billion annual cost to Hawaii relative to the estimated national economic impact of the Jones Act, which ranges from $656 million to $19 billion.

The Jones Act requires domestic shipping on U.S.-built, U.S.-crewed vessels. Results:

Hawaii annual cost: $1.2 billion¹⁷⁹
Forces oil imports from foreign sources rather than domestic shipping
Total economic cost: $656 million to $19 billion annually¹⁸⁰

Regulatory Subsystem Summary

Loss Category	Low Estimate	Mean	High Estimate
Friction (tax compliance)	$464B	$505B	$546B
Friction (housing)	$300B	$560B	$700B
Idle (NEPA)	$100B	$120B	$140B
Parasitic (Jones Act)	$1B	$10B	$19B
Total	$600B	$900B	$1.2T

Subsystem Audit: Subsidies and Transfers

Direct transfers to profitable industries distort market signals and insulate incumbents from innovation pressure.

Loss Category: Parasitic (Fossil Fuel Subsidies)

Direct annual subsidies to fossil fuel companies: $10-52 billion¹⁸¹.

This represents capital transfer to a mature, profitable industry, artificially lowering carbon-intensive energy costs relative to alternatives and slowing energy transition.

Loss Category: Parasitic (Agricultural Subsidies)

Agricultural subsidies in 2024: $9.3-30 billion¹⁸². Distribution is regressive. Top 10% of recipients received 65% of payments in 2024¹⁸³.

A flowchart depicting the ‘Waste Feedback Loop’ where regressive agricultural subsidies drive the overproduction of corn and soy, leading to a cycle of processed food consumption, obesity, and increased healthcare expenditures.

The subsidy structure incentivizes overproduction of corn and soy, which form the backbone of the processed food diet driving the obesity epidemic. This creates a Waste Feedback Loop: taxpayer funds subsidize production of cheap calories that make the population sick, requiring additional taxpayer funds to treat the resulting chronic disease (see Healthcare subsystem). Agricultural policy thus amplifies healthcare inefficiency.

Loss Category: Negative Work (Tariffs and Corporate Welfare)

Corporate welfare: Cato Institute tallies $181 billion annually in grants, loans, and credits to specific businesses¹⁸⁴.

A comparison of the annual economic costs of corporate welfare and tariff deadweight loss, highlighting the similar scale of impact between $181 billion in subsidies and the $160 billion loss in output.

Tariff deadweight loss: Trump/Biden tariff regimes estimated to reduce long-run GDP by 0.4-0.7%¹⁸⁵. On a $28 trillion economy, 0.4% reduction = $160B (95% CI: $90B-$250B) in lost output.

Subsidies Subsystem Summary

Loss Category	Low Estimate	Mean	High Estimate
Parasitic (fossil fuel)	$10B	$30B	$52B
Parasitic (agriculture)	$9B	$20B	$30B
Parasitic (corporate)	$150B	$181B	$200B
Negative work (tariffs)	$80B	$112B	$150B
Total	$200B	$280B	$350B

Aggregate Efficiency Calculation

Monte Carlo Simulation Parameters

We model Total Efficiency Gap as the sum of subsystem losses, using Monte Carlo simulation to account for correlated uncertainties.

A range chart comparing the mean annual efficiency gap across six subsystems, with error bars representing the P10 to P90 uncertainty intervals.

Subsystem	Distribution	P10	Mean	P90	Rationale
Defense	Log-Normal	$100B	$210B	$350B	Audit opacity creates high upper-bound risk
Healthcare	Normal	$300B	$450B	$600B	OECD comparisons provide stable variance
Justice/Prohibition	Normal	$150B	$280B	$400B	Incarceration costs relatively predictable
Regulatory/Tax	Log-Normal	$600B	$900B	$1.5T	Housing/tax opportunity costs have fat tails
Subsidies	Normal	$200B	$280B	$350B	Direct line items easier to bound
Debt Interest	Constant	$150B	$150B	$150B	Interest on accumulated inefficiency

Note: Debt interest calculated as portion of net interest ($888B in 2024)¹⁸⁶ attributable to cumulative efficiency gap.

Simulation Results

A comparison chart of the FY 2024-2025 Aggregate Efficiency Gap estimates, illustrating the mean value of $5.03 trillion alongside its 95% confidence interval and percentile distributions.

Aggregate Efficiency Gap (FY 2024-2025):

Percentile	Estimate
P5 (Conservative)	$1.85 trillion
Mean (Central)	$5.03T (95% CI: $3.44T-$7.69T)
P95 (Upper Bound)	$3.47 trillion

As percentage of GDP: 17.5% (95% CI: 11.9%-26.7%)

Subsystem Uncertainty Distributions

The following figures show Monte Carlo distributions for key subsystem loss estimates:

Probability Distribution: Tax Compliance Cost

This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.

Probability Distribution: Housing/Zoning Restrictions Cost

This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.

Probability Distribution: Healthcare System Inefficiency

This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.

This chart shows the assumed probability distribution for this parameter. The shaded region represents the 95% confidence interval where we expect the true value to fall.

Efficiency Rating Calculation

With system input of ~$6.75 trillion and efficiency gap of $2.27-3.47 trillion:

\[\text{Efficiency} = \frac{\text{Input} - \text{Gap}}{\text{Input}} = \frac{6.75 - 2.27}{6.75} = 66\% \text{ (mean)}\]

Range: 52-67% depending on gap estimate used.

A comparison chart showing the current efficiency range and mean value relative to the significantly higher OECD benchmark range.

OECD benchmark: 75-85% efficiency (peer nations achieving comparable outcomes with lower per-capita spending).

Human Cost Quantification (Economic Equivalents)

To contextualize the efficiency gap in human terms, we apply standard valuation thresholds. These are economic equivalents, not epidemiological mortality counts.

**Using VSL ($13.7 million):**$$\text{VSL-Equivalents} = \frac{\$2.27 \text{ trillion}}{\$13.7 \text{ million}} \approx 165,700$$

**Using QALY threshold ($100,000):**$$\text{QALY-Equivalents} = \frac{\$2.27 \text{ trillion}}{\$100,000} = 22.7 \text{ million}$$

Interpretation: The efficiency gap represents foregone welfare equivalent to 22.7 million quality-adjusted life years annually. This does not mean 165,700 people die from inefficiency. Rather, the misallocated resources could have purchased health improvements of that magnitude if deployed at cost-effectiveness thresholds used in medical decision-making.

A comparison showing the $2.27 trillion efficiency gap converted into human cost equivalents: 165,700 value-of-statistical-life (VSL) units and 22.7 million quality-adjusted life years (QALYs).

Reallocation Potential

If U.S. efficiency improved to OECD median (80%), approximately $1.5 trillion annually becomes available for reallocation.

Context Comparisons

Initiative	Annual Cost	Efficiency Gap Coverage
1% Treaty funding	$27.2B	55x covered
Global disease R&D (current)	$150B¹⁸⁷	Would 10x
U.S. infrastructure backlog	$2.6T total¹⁸⁸	Covered in <2 years
Global poverty elimination	~$175B¹⁸⁹	8x covered
Complete grid decarbonization	$100B/year¹⁹⁰	15x covered

The efficiency gap is not abstract accounting. It represents real capacity currently unavailable for health, infrastructure, and security improvements.

Structural Factors

Why do these losses persist despite apparent obviousness? Several structural factors explain system inertia:

Severed Feedback Loops

Government programs lack market feedback mechanisms. A private firm losing $210 billion annually on inefficient logistics would face bankruptcy. Federal agencies face no equivalent selection pressure.

Principal-Agent Misalignment

Those administering programs (bureaucrats, contractors) have incentives misaligned with program objectives. Contractors profit from complexity; administrators expand headcount regardless of output.

Measurement Failure

Current accounting measures expenditure, not utility. A dollar spent equals a dollar of “activity” regardless of outcome. Without output measurement, optimization is impossible.

Monopoly Dynamics

Government services typically face no competition. Without competitive pressure, innovation lags and costs inflate. This is the standard monopoly outcome.

Time Horizon Mismatch

Political cycles (2-4 years) misalign with infrastructure and policy cycles (10-30 years). Long-term efficiency investments lose to short-term visible spending.

Confidence Intervals and Limitations

Estimate Confidence by Subsystem

Subsystem	Data Quality	Confidence
Healthcare Admin	High (OECD comparisons)	High
Tax Compliance	High (IRS data)	High
Defense Audit	Low (61% unaccounted)	Medium
Incarceration	Medium (direct costs clear, indirect estimated)	Medium
Housing Misallocation	Medium (model-dependent)	Medium
Drug War Opportunity Cost	Low (counterfactual)	Low

What This Analysis Excludes

State/local inefficiency beyond federal mandates
Implicit subsidies (unpriced externalities)
Intergenerational costs (debt burden on future)
Second-order behavioral effects
International competitiveness losses

Including these factors would increase the efficiency gap estimate substantially.

Methodological Limitations

Counterfactual uncertainty: Some estimates require modeling what “would have happened” under alternative policies
Attribution challenges: Separating federal from state/local effects
Valuation debates: VSL and QALY thresholds vary by methodology
Data opacity: DoD audit failures mean some estimates are necessarily imprecise

References

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The NIH Pragmatic Trials Collaboratory funds trials at **$500K for planning phase, $1M/year for implementation**—a tiny fraction of NIH’s budget. The ADAPTABLE trial cost **$14 million** for **15,076 patients** (= **$929/patient**) versus **$420 million** for a similar traditional RCT (30x cheaper), yet pragmatic trials remain severely underfunded. PCORnet infrastructure enables real-world trials embedded in healthcare systems, but receives minimal support compared to basic research funding. Additional sources: https://commonfund.nih.gov/hcscollaboratory | https://pcornet.org/wp-content/uploads/2025/08/ADAPTABLE_Lay_Summary_21JUL2025.pdf | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5604499/

NIH. Antidepressant clinical trial exclusion rates. Zimmerman et al. https://pubmed.ncbi.nlm.nih.gov/26276679/ (2015)

Mean exclusion rate: 86.1% across 158 antidepressant efficacy trials (range: 44.4% to 99.8%) More than 82% of real-world depression patients would be ineligible for antidepressant registration trials Exclusion rates increased over time: 91.4% (2010-2014) vs. 83.8% (1995-2009) Most common exclusions: comorbid psychiatric disorders, age restrictions, insufficient depression severity, medical conditions Emergency psychiatry patients: only 3.3% eligible (96.7% excluded) when applying 9 common exclusion criteria Only a minority of depressed patients seen in clinical practice are likely to be eligible for most AETs Note: Generalizability of antidepressant trials has decreased over time, with increasingly stringent exclusion criteria eliminating patients who would actually use the drugs in clinical practice Additional sources: https://pubmed.ncbi.nlm.nih.gov/26276679/ | https://pubmed.ncbi.nlm.nih.gov/26164052/ | https://www.wolterskluwer.com/en/news/antidepressant-trials-exclude-most-real-world-patients-with-depression

CNBC. Warren buffett’s career average investment return. CNBC https://www.cnbc.com/2025/05/05/warren-buffetts-return-tally-after-60-years-5502284percent.html (2025)

Berkshire’s compounded annual return from 1965 through 2024 was 19.9%, nearly double the 10.4% recorded by the S&P 500. Berkshire shares skyrocketed 5,502,284% compared to the S&P 500’s 39,054% rise during that period. Additional sources: https://www.cnbc.com/2025/05/05/warren-buffetts-return-tally-after-60-years-5502284percent.html | https://www.slickcharts.com/berkshire-hathaway/returns

BLS. Average US hourly wage. BLS https://www.bls.gov/news.release/pdf/ocwage.pdf (2024)

Mean: $32.66 | Median: $23.80 (May 2024) Additional sources: https://www.bls.gov/news.release/pdf/ocwage.pdf

Group, E. W. US farm subsidy database and analysis. Environmental Working Group https://farm.ewg.org/ (2024)

US agricultural subsidies total approximately $30 billion annually, but create much larger economic distortions. Top 10% of farms receive 78% of subsidies, benefits concentrated in commodity crops (corn, soy, wheat, cotton), environmental damage from monoculture incentivized, and overall deadweight loss estimated at $50-120 billion annually. Additional sources: https://farm.ewg.org/ | https://www.ers.usda.gov/topics/farm-economy/farm-sector-income-finances/government-payments-the-safety-net/

Posen, B. R. Restraint: A New Foundation for u.s. Grand Strategy. (Posen, 2014).

The United States could maintain adequate deterrence and defense with a much smaller military budget. Current spending levels reflect force projection capabilities far beyond what homeland security and deterrence require. A strategy of restraint could reduce defense spending by 40-50% while maintaining security through nuclear deterrence and geographic advantages. Additional sources: https://www.cornellpress.cornell.edu/book/9780801452581/restraint/

Alliance, D. P. The drug war by the numbers. (2021)

Since 1971, the war on drugs has cost the United States an estimated $1 trillion in enforcement. The federal drug control budget was $41 billion in 2022. Mass incarceration costs the U.S. at least $182 billion every year, with over $450 billion spent to incarcerate individuals on drug charges in federal prisons.

Crawford, N. C. & Lutz, C. Blood and treasure: United states budgetary costs and human costs of 20 years of war. (2023)

The total costs of the post-9/11 wars in Iraq, Afghanistan, Pakistan, and Syria are expected to exceed $8 trillion. This includes $2.89 trillion for Iraq/Syria, veterans care through 2050 projected at more than $2 trillion, and interest on war debt adding $6.5 trillion through 2050.

Fund, I. M. IMF fossil fuel subsidies data: 2023 update. (2023)

Globally, fossil fuel subsidies were $7 trillion in 2022 or 7.1 percent of GDP. The United States subsidies totaled $649 billion. Underpricing for local air pollution costs and climate damages are the largest contributor, accounting for about 30 percent each.

10.

Papanicolas, I. et al. Health care spending in the united states and other high-income countries. Papanicolas et al. https://jamanetwork.com/journals/jama/article-abstract/2674671 (2018)

The US spent approximately twice as much as other high-income countries on medical care (mean per capita: $9,892 vs $5,289), with similar utilization but much higher prices. Administrative costs accounted for 8% of US spending vs 1-3% in other countries. US spending on pharmaceuticals was $1,443 per capita vs $749 elsewhere. Despite spending more, US health outcomes are not better. Additional sources: https://jamanetwork.com/journals/jama/article-abstract/2674671

11.

Hsieh, C.-T. & Moretti, E. Housing constraints and spatial misallocation. Hsieh & Moretti https://www.aeaweb.org/articles?id=10.1257/mac.20170388 (2019)

We quantify the amount of spatial misallocation of labor across US cities and its aggregate costs. Tight land-use restrictions in high-productivity cities like New York, San Francisco, and Boston lowered aggregate US growth by 36% from 1964 to 2009. Local constraints on housing supply have had enormous effects on the national economy. Additional sources: https://www.aeaweb.org/articles?id=10.1257/mac.20170388

12.

Justice, V. I. of. The economic burden of incarceration in the united states. Vera Institute https://www.vera.org/publications/the-economic-burden-of-incarceration-in-the-u-s (2024)

US incarceration costs approximately $80 billion annually in direct correctional expenditures alone. Including social costs (lost earnings, family impacts, health effects, reduced child outcomes), total burden exceeds $300 billion annually. The US incarcerates at 5x the rate of other OECD countries with no corresponding reduction in crime. Evidence shows community-based alternatives cost less and reduce recidivism more effectively. Additional sources: https://www.vera.org/publications/the-economic-burden-of-incarceration-in-the-u-s | https://www.prisonpolicy.org/reports/pie2024.html | https://www.rand.org/pubs/research_reports/RRA108-3.html

13.

Marron Institute, N. Transit costs project - why US infrastructure costs so much. NYU Transit Costs Project https://transitcosts.com/ (2024)

The United States builds transit infrastructure at dramatically higher costs than peer countries. New York’s Second Avenue Subway cost $2.5 billion per kilometer vs. $200-500 million in European cities. US highway construction similarly costs 2-5x more than comparable projects abroad. Causes include: excessive environmental review, litigation risk, lack of in-house expertise, fragmented project management, and inflated soft costs. Additional sources: https://transitcosts.com/ | https://www.brookings.edu/articles/why-does-infrastructure-cost-so-much/

14.

Clemens, M. A. Economics and emigration: Trillion-dollar bills on the sidewalk? Journal of Economic Perspectives 25, 83–106 (2011)

Free global labor mobility would increase gross world product by somewhere in the range of 67-147%... The gains to eliminating migration barriers amount to large fractions of world GDP—one or two orders of magnitude larger than the gains from dropping all remaining restrictions on international flows of goods and capital.

15.

Kleiner, M. M. & Krueger, A. B. Analyzing the extent and influence of occupational licensing on the labor market. Journal of Labor Economics 31, S173–S202 (2013)

Occupational licensing affects 29% of US workers and creates labor market distortions costing 2-3% of GDP.

16.

Lab, Y. B. The fiscal, economic, and distributional effects of all u.s. tariffs. (2025)

Accounting for all the 2025 US tariffs and retaliation implemented to date, the level of real GDP is persistently -0.6% smaller in the long run, the equivalent of $160 billion 2024$ annually.

17.

Foundation, T. Tax compliance costs the US economy $546 billion annually. https://taxfoundation.org/data/all/federal/irs-tax-compliance-costs/ (2024)

Americans will spend over 7.9 billion hours complying with IRS tax filing and reporting requirements in 2024. This costs the economy roughly $413 billion in lost productivity. In addition, the IRS estimates that Americans spend roughly $133 billion annually in out-of-pocket costs, bringing the total compliance costs to $546 billion, or nearly 2 percent of GDP.

18.

Organization, W. H. WHO global health estimates 2024. World Health Organization https://www.who.int/data/gho/data/themes/mortality-and-global-health-estimates (2024)

Comprehensive mortality and morbidity data by cause, age, sex, country, and year Global mortality: 55-60 million deaths annually Lives saved by modern medicine (vaccines, cardiovascular drugs, oncology): 12M annually (conservative aggregate) Leading causes of death: Cardiovascular disease (17.9M), Cancer (10.3M), Respiratory disease (4.0M) Note: Baseline data for regulatory mortality analysis. Conservative estimate of pharmaceutical impact based on WHO immunization data (4.5M/year from vaccines) + cardiovascular interventions (3.3M/year) + oncology (1.5M/year) + other therapies. Additional sources: https://www.who.int/data/gho/data/themes/mortality-and-global-health-estimates

19.

GiveWell. GiveWell cost per life saved for top charities (2024). GiveWell: Top Charities https://www.givewell.org/charities/top-charities

General range: $3,000-$5,500 per life saved (GiveWell top charities) Helen Keller International (Vitamin A): $3,500 average (2022-2024); varies $1,000-$8,500 by country Against Malaria Foundation: $5,500 per life saved New Incentives (vaccination incentives): $4,500 per life saved Malaria Consortium (seasonal malaria chemoprevention): $3,500 per life saved VAS program details: $2 to provide vitamin A supplements to child for one year Note: Figures accurate for 2024. Helen Keller VAS program has wide country variation ($1K-$8.5K) but $3,500 is accurate average. Among most cost-effective interventions globally Additional sources: https://www.givewell.org/charities/top-charities | https://www.givewell.org/charities/helen-keller-international | https://ourworldindata.org/cost-effectiveness

20.

literature, E. psychology. Average reading speed.

Adults: 250 words/minute (silent reading)

21.

AARP. Unpaid caregiver hours and economic value. AARP 2023 https://www.aarp.org/caregiving/financial-legal/info-2023/unpaid-caregivers-provide-billions-in-care.html (2023)

Average family caregiver: 25-26 hours per week (100-104 hours per month) 38 million caregivers providing 36 billion hours of care annually Economic value: $16.59 per hour = $600 billion total annual value (2021) 28% of people provided eldercare on a given day, averaging 3.9 hours when providing care Caregivers living with care recipient: 37.4 hours per week Caregivers not living with recipient: 23.7 hours per week Note: Disease-related caregiving is subset of total; includes elderly care, disability care, and child care Additional sources: https://www.aarp.org/caregiving/financial-legal/info-2023/unpaid-caregivers-provide-billions-in-care.html | https://www.bls.gov/news.release/elcare.nr0.htm | https://www.caregiver.org/resource/caregiver-statistics-demographics/

22.

MMWR, C. Childhood vaccination economic benefits. CDC MMWR https://www.cdc.gov/mmwr/volumes/73/wr/mm7331a2.htm (1994)

US programs (1994-2023): $540B direct savings, $2.7T societal savings ( $18B/year direct, $90B/year societal) Global (2001-2020): $820B value for 10 diseases in 73 countries ( $41B/year) ROI: $11 return per $1 invested Measles vaccination alone saved 93.7M lives (61% of 154M total) over 50 years (1974-2024) Additional sources: https://www.cdc.gov/mmwr/volumes/73/wr/mm7331a2.htm | https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(24

23.

CDC. Childhood vaccination (US) ROI. CDC https://www.cdc.gov/mmwr/preview/mmwrhtml/mm6316a4.htm (2017).

24.

Labor Statistics, U. S. B. of. CPI inflation calculator. (2024)

CPI-U (1980): 82.4 CPI-U (2024): 313.5 Inflation multiplier (1980-2024): 3.80× Cumulative inflation: 280.48% Average annual inflation rate: 3.08% Note: Official U.S. government inflation data using Consumer Price Index for All Urban Consumers (CPI-U). Additional sources: https://www.bls.gov/data/inflation_calculator.htm

25.

Del Rosal, I. The empirical measurement of rent-seeking costs. Journal of Economic Surveys https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-6419.2009.00621.x (2011)

A comprehensive survey of empirical estimates finds rent-seeking costs range from 0.2% to 23.7% of GDP across different methodologies and countries. Laband & Sophocleus (1988) estimated up to 45% for the US.

26.

via, D. analysis. ClinicalTrials.gov cumulative enrollment data (2025). Direct analysis via ClinicalTrials.gov API v2 https://clinicaltrials.gov/data-api/api

Analysis of 100,000 active/recruiting/completed trials on ClinicalTrials.gov (November 2025) shows cumulative enrollment of 12.2 million participants: Phase 1 (722k), Phase 2 (2.2M), Phase 3 (6.5M), Phase 4 (2.7M). Median participants per trial: Phase 1 (33), Phase 2 (60), Phase 3 (237), Phase 4 (90). Additional sources: https://clinicaltrials.gov/data-api/api

27.

CAN, A. Clinical trial patient participation rate. ACS CAN: Barriers to Clinical Trial Enrollment https://www.fightcancer.org/policy-resources/barriers-patient-enrollment-therapeutic-clinical-trials-cancer

Only 3-5% of adult cancer patients in US receive treatment within clinical trials About 5% of American adults have ever participated in any clinical trial Oncology: 2-3% of all oncology patients participate Contrast: 50-60% enrollment for pediatric cancer trials (<15 years old) Note: 20% of cancer trials fail due to insufficient enrollment; 11% of research sites enroll zero patients Additional sources: https://www.fightcancer.org/policy-resources/barriers-patient-enrollment-therapeutic-clinical-trials-cancer | https://hints.cancer.gov/docs/Briefs/HINTS_Brief_48.pdf

28.

ScienceDaily. Global prevalence of chronic disease. ScienceDaily: GBD 2015 Study https://www.sciencedaily.com/releases/2015/06/150608081753.htm (2015)

2.3 billion individuals had more than five ailments (2013) Chronic conditions caused 74% of all deaths worldwide (2019), up from 67% (2010) Approximately 1 in 3 adults suffer from multiple chronic conditions (MCCs) Risk factor exposures: 2B exposed to biomass fuel, 1B to air pollution, 1B smokers Projected economic cost: $47 trillion by 2030 Note: 2.3B with 5+ ailments is more accurate than "2B with chronic disease." One-third of all adults globally have multiple chronic conditions Additional sources: https://www.sciencedaily.com/releases/2015/06/150608081753.htm | https://pmc.ncbi.nlm.nih.gov/articles/PMC10830426/ | https://pmc.ncbi.nlm.nih.gov/articles/PMC6214883/

29.

C&EN. Annual number of new drugs approved globally: 50. C&EN https://cen.acs.org/pharmaceuticals/50-new-drugs-received-FDA/103/i2 (2025)

50 new drugs approved annually Additional sources: https://cen.acs.org/pharmaceuticals/50-new-drugs-received-FDA/103/i2 | https://www.fda.gov/drugs/development-approval-process-drugs/novel-drug-approvals-fda

30.

estimates, I. Clinical trial abandonment.

Average: 10% abandoned before completion

31.

Report, I. Global trial capacity. IQVIA Report: Clinical Trial Subjects Number Drops Due to Decline in COVID-19 Enrollment https://gmdpacademy.org/news/iqvia-report-clinical-trial-subjects-number-drops-due-to-decline-in-covid-19-enrollment/

1.9M participants annually (2022, post-COVID normalization from 4M peak in 2021) Additional sources: https://gmdpacademy.org/news/iqvia-report-clinical-trial-subjects-number-drops-due-to-decline-in-covid-19-enrollment/

32.

Research & Markets. Global clinical trials market 2024. Research and Markets https://www.globenewswire.com/news-release/2024/04/19/2866012/0/en/Global-Clinical-Trials-Market-Research-Report-2024-An-83-16-Billion-Market-by-2030-AI-Machine-Learning-and-Blockchain-will-Transform-the-Clinical-Trials-Landscape.html (2024)

Global clinical trials market valued at approximately $83 billion in 2024, with projections to reach $83-132 billion by 2030. Additional sources: https://www.globenewswire.com/news-release/2024/04/19/2866012/0/en/Global-Clinical-Trials-Market-Research-Report-2024-An-83-16-Billion-Market-by-2030-AI-Machine-Learning-and-Blockchain-will-Transform-the-Clinical-Trials-Landscape.html | https://www.precedenceresearch.com/clinical-trials-market

33.

OpenSecrets. Lobbying spend (defense). OpenSecrets https://www.opensecrets.org/federal-lobbying/industries/summary?cycle=2024\&id=D (2024).

34.

GiveWell. Cost per DALY for deworming programs. https://www.givewell.org/international/technical/programs/deworming/cost-effectiveness

Schistosomiasis treatment: $28.19-$70.48 per DALY (using arithmetic means with varying disability weights) Soil-transmitted helminths (STH) treatment: $82.54 per DALY (midpoint estimate) Note: GiveWell explicitly states this 2011 analysis is "out of date" and their current methodology focuses on long-term income effects rather than short-term health DALYs Additional sources: https://www.givewell.org/international/technical/programs/deworming/cost-effectiveness

35.

Numbers, T. by. Pre-1962 drug development costs and timeline (think by numbers). Think by Numbers: How Many Lives Does FDA Save? https://thinkbynumbers.org/health/how-many-net-lives-does-the-fda-save/ (1962)

Historical estimates (1970-1985): USD $226M fully capitalized (2011 prices) 1980s drugs: $65M after-tax R&D (1990 dollars), $194M compounded to approval (1990 dollars) Modern comparison: $2-3B costs, 7-12 years (dramatic increase from pre-1962) Context: 1962 regulatory clampdown reduced new treatment production by 70%, dramatically increasing development timelines and costs Note: Secondary source; less reliable than Congressional testimony Additional sources: https://thinkbynumbers.org/health/how-many-net-lives-does-the-fda-save/ | https://en.wikipedia.org/wiki/Cost_of_drug_development | https://www.statnews.com/2018/10/01/changing-1962-law-slash-drug-prices/

36.

Medicine, N. Drug repurposing rate ( 30%). Nature Medicine https://www.nature.com/articles/s41591-024-03233-x (2024)

Approximately 30% of drugs gain at least one new indication after initial approval. Additional sources: https://www.nature.com/articles/s41591-024-03233-x

37.

EPI. Education investment economic multiplier (2.1). EPI: Public Investments Outside Core Infrastructure https://www.epi.org/publication/bp348-public-investments-outside-core-infrastructure/

Early childhood education: Benefits 12X outlays by 2050; $8.70 per dollar over lifetime Educational facilities: $1 spent → $1.50 economic returns Energy efficiency comparison: 2-to-1 benefit-to-cost ratio (McKinsey) Private return to schooling: 9% per additional year (World Bank meta-analysis) Note: 2.1 multiplier aligns with benefit-to-cost ratios for educational infrastructure/energy efficiency. Early childhood education shows much higher returns (12X by 2050) Additional sources: https://www.epi.org/publication/bp348-public-investments-outside-core-infrastructure/ | https://documents1.worldbank.org/curated/en/442521523465644318/pdf/WPS8402.pdf | https://freopp.org/whitepapers/establishing-a-practical-return-on-investment-framework-for-education-and-skills-development-to-expand-economic-opportunity/

38.

PMC. Healthcare investment economic multiplier (1.8). PMC: California Universal Health Care https://pmc.ncbi.nlm.nih.gov/articles/PMC5954824/ (2022)

Healthcare fiscal multiplier: 4.3 (95% CI: 2.5-6.1) during pre-recession period (1995-2007) Overall government spending multiplier: 1.61 (95% CI: 1.37-1.86) Why healthcare has high multipliers: No effect on trade deficits (spending stays domestic); improves productivity & competitiveness; enhances long-run potential output Gender-sensitive fiscal spending (health & care economy) produces substantial positive growth impacts Note: "1.8" appears to be conservative estimate; research shows healthcare multipliers of 4.3 Additional sources: https://pmc.ncbi.nlm.nih.gov/articles/PMC5954824/ | https://cepr.org/voxeu/columns/government-investment-and-fiscal-stimulus | https://ncbi.nlm.nih.gov/pmc/articles/PMC3849102/ | https://set.odi.org/wp-content/uploads/2022/01/Fiscal-multipliers-review.pdf

39.

Bank, W. Infrastructure investment economic multiplier (1.6). World Bank: Infrastructure Investment as Stimulus https://blogs.worldbank.org/en/ppps/effectiveness-infrastructure-investment-fiscal-stimulus-what-weve-learned (2022)

Infrastructure fiscal multiplier: 1.6 during contractionary phase of economic cycle Average across all economic states: 1.5 (meaning $1 of public investment → $1.50 of economic activity) Time horizon: 0.8 within 1 year, 1.5 within 2-5 years Range of estimates: 1.5-2.0 (following 2008 financial crisis & American Recovery Act) Italian public construction: 1.5-1.9 multiplier US ARRA: 0.4-2.2 range (differential impacts by program type) Economic Policy Institute: Uses 1.6 for infrastructure spending (middle range of estimates) Note: Public investment less likely to crowd out private activity during recessions; particularly effective when monetary policy loose with near-zero rates Additional sources: https://blogs.worldbank.org/en/ppps/effectiveness-infrastructure-investment-fiscal-stimulus-what-weve-learned | https://www.gihub.org/infrastructure-monitor/insights/fiscal-multiplier-effect-of-infrastructure-investment/ | https://cepr.org/voxeu/columns/government-investment-and-fiscal-stimulus | https://www.richmondfed.org/publications/research/economic_brief/2022/eb_22-04

40.

Mercatus. Military spending economic multiplier (0.6). Mercatus: Defense Spending and Economy https://www.mercatus.org/research/research-papers/defense-spending-and-economy

Ramey (2011): 0.6 short-run multiplier Barro (1981): 0.6 multiplier for WWII spending (war spending crowded out 40¢ private economic activity per federal dollar) Barro & Redlick (2011): 0.4 within current year, 0.6 over two years; increased govt spending reduces private-sector GDP portions General finding: $1 increase in deficit-financed federal military spending = less than $1 increase in GDP Variation by context: Central/Eastern European NATO: 0.6 on impact, 1.5-1.6 in years 2-3, gradual fall to zero Ramey & Zubairy (2018): Cumulative 1% GDP increase in military expenditure raises GDP by 0.7% Additional sources: https://www.mercatus.org/research/research-papers/defense-spending-and-economy | https://cepr.org/voxeu/columns/world-war-ii-america-spending-deficits-multipliers-and-sacrifice | https://www.rand.org/content/dam/rand/pubs/research_reports/RRA700/RRA739-2/RAND_RRA739-2.pdf

41.

(BIO), B. I. O. BIO clinical development success rates 2011-2020. Biotechnology Innovation Organization (BIO) https://go.bio.org/rs/490-EHZ-999/images/ClinicalDevelopmentSuccessRates2011_2020.pdf (2021)

Phase I duration: 2.3 years average Total time to market (Phase I-III + approval): 10.5 years average Phase transition success rates: Phase I→II: 63.2%, Phase II→III: 30.7%, Phase III→Approval: 58.1% Overall probability of approval from Phase I: 12% Note: Largest publicly available study of clinical trial success rates. Efficacy lag = 10.5 - 2.3 = 8.2 years post-safety verification. Additional sources: https://go.bio.org/rs/490-EHZ-999/images/ClinicalDevelopmentSuccessRates2011_2020.pdf

42.

FDA. FDA-approved prescription drug products (20,000+). FDA https://www.fda.gov/media/143704/download

There are over 20,000 prescription drug products approved for marketing. Additional sources: https://www.fda.gov/media/143704/download

43.

FDA. FDA GRAS list count ( 570-700). FDA https://www.fda.gov/food/generally-recognized-safe-gras/gras-notice-inventory

The FDA GRAS (Generally Recognized as Safe) list contains approximately 570–700 substances. Additional sources: https://www.fda.gov/food/generally-recognized-safe-gras/gras-notice-inventory

44.

Drugs.com. FDA drug approval timeline. Drugs.com: FDA Drug Approval Process https://www.drugs.com/fda-approval-process.html

Full timeline (preclinical to market): 12-15 years average (10-15 years common range) Preclinical phase: 3-7 years Clinical development + NDA review: 9 years NDA review alone: 10 months average (standard); 6 months (priority review) Historical (pre-PDUFA): 21-29 months for NDA review Note: "10 years" is accurate for total development timeline (10-15 year range). Modern FDA review is faster (10 months) thanks to PDUFA, but overall timeline remains 12-15 years Additional sources: https://www.drugs.com/fda-approval-process.html | https://www.fdareview.org/issues/the-drug-development-and-approval-process/ | https://pmc.ncbi.nlm.nih.gov/articles/PMC6113340/

45.

ACLED. Active combat deaths annually. ACLED: Global Conflict Surged 2024 https://acleddata.com/2024/12/12/data-shows-global-conflict-surged-in-2024-the-washington-post/ (2024)

2024: 233,597 deaths (30% increase from 179,099 in 2023) Deadliest conflicts: Ukraine (67,000), Palestine (35,000) Nearly 200,000 acts of violence (25% higher than 2023, double from 5 years ago) One in six people globally live in conflict-affected areas Additional sources: https://acleddata.com/2024/12/12/data-shows-global-conflict-surged-in-2024-the-washington-post/ | https://acleddata.com/media-citation/data-shows-global-conflict-surged-2024-washington-post | https://acleddata.com/conflict-index/index-january-2024/

46.

UCDP. State violence deaths annually. UCDP: Uppsala Conflict Data Program https://ucdp.uu.se/

Uppsala Conflict Data Program (UCDP): Tracks one-sided violence (organized actors attacking unarmed civilians) UCDP definition: Conflicts causing at least 25 battle-related deaths in calendar year 2023 total organized violence: 154,000 deaths; Non-state conflicts: 20,900 deaths UCDP collects data on state-based conflicts, non-state conflicts, and one-sided violence Specific "2,700 annually" figure for state violence not found in recent UCDP data; actual figures vary annually Additional sources: https://ucdp.uu.se/ | https://en.wikipedia.org/wiki/Uppsala_Conflict_Data_Program | https://ourworldindata.org/grapher/deaths-in-armed-conflicts-by-region

47.

Data, O. W. in. Terror attack deaths (8,300 annually). Our World in Data: Terrorism https://ourworldindata.org/terrorism (2024)

2023: 8,352 deaths (22% increase from 2022, highest since 2017) 2023: 3,350 terrorist incidents (22% decrease), but 56% increase in avg deaths per attack Global Terrorism Database (GTD): 200,000+ terrorist attacks recorded (2021 version) Maintained by: National Consortium for Study of Terrorism & Responses to Terrorism (START), U. of Maryland Geographic shift: Epicenter moved from Middle East to Central Sahel (sub-Saharan Africa) - now >50% of all deaths Additional sources: https://ourworldindata.org/terrorism | https://reliefweb.int/report/world/global-terrorism-index-2024 | https://www.start.umd.edu/gtd/ | https://ourworldindata.org/grapher/fatalities-from-terrorism

48.

Health Metrics, I. for & (IHME), E. IHME global burden of disease 2021 (2.88B DALYs, 1.13B YLD). Institute for Health Metrics and Evaluation (IHME) https://vizhub.healthdata.org/gbd-results/ (2024)

In 2021, global DALYs totaled approximately 2.88 billion, comprising 1.75 billion Years of Life Lost (YLL) and 1.13 billion Years Lived with Disability (YLD). This represents a 13% increase from 2019 (2.55B DALYs), largely attributable to COVID-19 deaths and aging populations. YLD accounts for approximately 39% of total DALYs, reflecting the substantial burden of non-fatal chronic conditions. Additional sources: https://vizhub.healthdata.org/gbd-results/ | https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(24 | https://www.healthdata.org/research-analysis/about-gbd

49.

War, B. W. C. of. Environmental cost of war ($100B annually). Brown Watson Costs of War: Environmental Cost https://watson.brown.edu/costsofwar/costs/social/environment

War on Terror emissions: 1.2B metric tons GHG (equivalent to 257M cars/year) Military: 5.5% of global GHG emissions (2X aviation + shipping combined) US DoD: World’s single largest institutional oil consumer, 47th largest emitter if nation Cleanup costs: $500B+ for military contaminated sites Gaza war environmental damage: $56.4B; landmine clearance: $34.6B expected Climate finance gap: Rich nations spend 30X more on military than climate finance Note: Military activities cause massive environmental damage through GHG emissions, toxic contamination, and long-term cleanup costs far exceeding current climate finance commitments Additional sources: https://watson.brown.edu/costsofwar/costs/social/environment | https://earth.org/environmental-costs-of-wars/ | https://transformdefence.org/transformdefence/stats/

50.

ScienceDaily. Medical research lives saved annually (4.2 million). ScienceDaily: Physical Activity Prevents 4M Deaths https://www.sciencedaily.com/releases/2020/06/200617194510.htm (2020)

Physical activity: 3.9M early deaths averted annually worldwide (15% lower premature deaths than without) COVID vaccines (2020-2024): 2.533M deaths averted, 14.8M life-years preserved; first year alone: 14.4M deaths prevented Cardiovascular prevention: 3 interventions could delay 94.3M deaths over 25 years (antihypertensives alone: 39.4M) Pandemic research response: Millions of deaths averted through rapid vaccine/drug development Additional sources: https://www.sciencedaily.com/releases/2020/06/200617194510.htm | https://pmc.ncbi.nlm.nih.gov/articles/PMC9537923/ | https://www.ahajournals.org/doi/10.1161/CIRCULATIONAHA.118.038160 | https://pmc.ncbi.nlm.nih.gov/articles/PMC9464102/

51.

SIPRI. 36:1 disparity ratio of spending on weapons over cures. SIPRI: Military Spending https://www.sipri.org/commentary/blog/2016/opportunity-cost-world-military-spending (2016)

Global military spending: $2.7 trillion (2024, SIPRI) Global government medical research: $68 billion (2024) Actual ratio: 39.7:1 in favor of weapons over medical research Military R&D alone: $85B (2004 data, 10% of global R&D) Military spending increases crowd out health: 1% ↑ military = 0.62% ↓ health spending Note: Ratio actually worse than 36:1. Each 1% increase in military spending reduces health spending by 0.62%, with effect more intense in poorer countries (0.962% reduction) Additional sources: https://www.sipri.org/commentary/blog/2016/opportunity-cost-world-military-spending | https://pmc.ncbi.nlm.nih.gov/articles/PMC9174441/ | https://www.congress.gov/crs-product/R45403

52.

Numbers, T. by. Lost human capital due to war ($270B annually). Think by Numbers: War Costs $74 <https://thinkbynumbers.org/military/war/the-economic-case-for-peace-a-comprehensive-financial-analysis/> (2021)

Lost human capital from war: $300B annually (economic impact of losing skilled/productive individuals to conflict) Broader conflict/violence cost: $14T/year globally 1.4M violent deaths/year; conflict holds back economic development, causes instability, widens inequality, erodes human capital 2002: 48.4M DALYs lost from 1.6M violence deaths = $151B economic value (2000 USD) Economic toll includes: commodity prices, inflation, supply chain disruption, declining output, lost human capital Additional sources: <https://thinkbynumbers.org/military/war/the-economic-case-for-peace-a-comprehensive-financial-analysis/> | https://www.weforum.org/stories/2021/02/war-violence-costs-each-human-5-a-day/ | https://pubmed.ncbi.nlm.nih.gov/19115548/

53.

PubMed. Psychological impact of war cost ($100B annually). PubMed: Economic Burden of PTSD https://pubmed.ncbi.nlm.nih.gov/35485933/

PTSD economic burden (2018 U.S.): $232.2B total ($189.5B civilian, $42.7B military) Civilian costs driven by: Direct healthcare ($66B), unemployment ($42.7B) Military costs driven by: Disability ($17.8B), direct healthcare ($10.1B) Exceeds costs of other mental health conditions (anxiety, depression) War-exposed populations: 2-3X higher rates of anxiety, depression, PTSD; women and children most vulnerable Note: Actual burden $232B, significantly higher than "$100B" claimed Additional sources: https://pubmed.ncbi.nlm.nih.gov/35485933/ | https://news.va.gov/103611/study-national-economic-burden-of-ptsd-staggering/ | https://pmc.ncbi.nlm.nih.gov/articles/PMC9957523/

54.

CGDev. UNHCR average refugee support cost. CGDev https://www.cgdev.org/blog/costs-hosting-refugees-oecd-countries-and-why-uk-outlier (2024)

The average cost of supporting a refugee is $1,384 per year. This represents total host country costs (housing, healthcare, education, security). OECD countries average $6,100 per refugee (mean 2022-2023), with developing countries spending $700-1,000. Global weighted average of $1,384 is reasonable given that 75-85% of refugees are in low/middle-income countries. Additional sources: https://www.cgdev.org/blog/costs-hosting-refugees-oecd-countries-and-why-uk-outlier | https://www.unhcr.org/sites/default/files/2024-11/UNHCR-WB-global-cost-of-refugee-inclusion-in-host-country-health-systems.pdf

55.

Bank, W. World bank trade disruption cost from conflict. World Bank https://www.worldbank.org/en/topic/trade/publication/trading-away-from-conflict

Estimated $616B annual cost from conflict-related trade disruption. World Bank research shows civil war costs an average developing country 30 years of GDP growth, with 20 years needed for trade to return to pre-war levels. Trade disputes analysis shows tariff escalation could reduce global exports by up to $674 billion. Additional sources: https://www.worldbank.org/en/topic/trade/publication/trading-away-from-conflict | https://www.nber.org/papers/w11565 | http://blogs.worldbank.org/en/trade/impacts-global-trade-and-income-current-trade-disputes

56.

VA. Veteran healthcare cost projections. VA https://department.va.gov/wp-content/uploads/2025/06/2026-Budget-in-Brief.pdf (2026)

VA budget: $441.3B requested for FY 2026 (10% increase). Disability compensation: $165.6B in FY 2024 for 6.7M veterans. PACT Act projected to increase spending by $300B between 2022-2031. Costs under Toxic Exposures Fund: $20B (2024), $30.4B (2025), $52.6B (2026). Additional sources: https://department.va.gov/wp-content/uploads/2025/06/2026-Budget-in-Brief.pdf | https://www.cbo.gov/publication/45615 | https://www.legion.org/information-center/news/veterans-healthcare/2025/june/va-budget-tops-400-billion-for-2025-from-higher-spending-on-mandated-benefits-medical-care

57.

IQVIA Institute for Human Data Science. The global use of medicines 2024: Outlook to 2028. IQVIA Institute Report https://www.iqvia.com/insights/the-iqvia-institute/reports-and-publications/reports/the-global-use-of-medicines-2024-outlook-to-2028 (2024)

Global days of therapy reached 1.8 trillion in 2019 (234 defined daily doses per person). Diabetes, respiratory, CVD, and cancer account for 71 percent of medicine use. Projected to reach 3.8 trillion DDDs by 2028.

58.

size, D. from global market & ratios, public/private funding. Private industry clinical trial spending.

Private pharmaceutical and biotech industry spends approximately $75-90 billion annually on clinical trials, representing roughly 90% of global clinical trial spending.

59.

IHME Global Burden of Disease (2.55B DALYs), C. from & GDP per capita valuation, global. $109 trillion annual global disease burden.

The global economic burden of disease, including direct healthcare costs ($8.2 trillion) and lost productivity ($100.9 trillion from 2.55 billion DALYs × $39,570 per DALY), totals approximately$109.1 trillion annually.

60.

Trials, A. C. Global government spending on interventional clinical trials: $3-6 billion/year. Applied Clinical Trials https://www.appliedclinicaltrialsonline.com/view/sizing-clinical-research-market

Estimated range based on NIH ( $0.8-5.6B), NIHR ($1.6B total budget), and EU funding ( $1.3B/year). Roughly 5-10% of global market. Additional sources: https://www.appliedclinicaltrialsonline.com/view/sizing-clinical-research-market | https://www.thelancet.com/journals/langlo/article/PIIS2214-109X(20

61.

Suisse/UBS, C. Credit suisse global wealth report 2023. Credit Suisse/UBS https://www.ubs.com/global/en/family-office-uhnw/reports/global-wealth-report-2023.html (2023)

Total global household wealth: USD 454.4 trillion (2022) Wealth declined by USD 11.3 trillion (-2.4%) in 2022, first decline since 2008 Wealth per adult: USD 84,718 Additional sources: https://www.ubs.com/global/en/family-office-uhnw/reports/global-wealth-report-2023.html

62.

budgets:, S. component country. Global government medical research spending ($67.5B, 2023–2024). See component country budgets: NIH Budget #nih-budget-fy2025.

63.

SIPRI. Global military spending ($2.72T, 2024). SIPRI https://www.sipri.org/publications/2025/sipri-fact-sheets/trends-world-military-expenditure-2024 (2025).

64.

budgets, E. from major foundation & activities. Nonprofit clinical trial funding estimate.

Nonprofit foundations spend an estimated $2-5 billion annually on clinical trials globally, representing approximately 2-5% of total clinical trial spending.

65.

IQVIA, I. reports: Global pharmaceutical r&d spending.

Total global pharmaceutical R&D spending is approximately $300 billion annually. Clinical trials represent 15-20% of this total ($45-60B), with the remainder going to drug discovery, preclinical research, regulatory affairs, and manufacturing development.

66.

UN. Global population reaches 8 billion. UN: World Population 8 Billion Nov 15 2022 https://www.un.org/en/desa/world-population-reach-8-billion-15-november-2022 (2022)

Milestone: November 15, 2022 (UN World Population Prospects 2022) Day of Eight Billion" designated by UN Added 1 billion people in just 11 years (2011-2022) Growth rate: Slowest since 1950; fell under 1% in 2020 Future: 15 years to reach 9B (2037); projected peak 10.4B in 2080s Projections: 8.5B (2030), 9.7B (2050), 10.4B (2080-2100 plateau) Note: Milestone reached Nov 2022. Population growth slowing; will take longer to add next billion (15 years vs 11 years) Additional sources: https://www.un.org/en/desa/world-population-reach-8-billion-15-november-2022 | https://www.un.org/en/dayof8billion | https://en.wikipedia.org/wiki/Day_of_Eight_Billion

67.

School, H. K. 3.5% participation tipping point. Harvard Kennedy School https://www.hks.harvard.edu/centers/carr/publications/35-rule-how-small-minority-can-change-world (2020)

The research found that nonviolent campaigns were twice as likely to succeed as violent ones, and once 3.5% of the population were involved, they were always successful. Chenoweth and Maria Stephan studied the success rates of civil resistance efforts from 1900 to 2006, finding that nonviolent movements attracted, on average, four times as many participants as violent movements and were more likely to succeed. Key finding: Every campaign that mobilized at least 3.5% of the population in sustained protest was successful (in their 1900-2006 dataset) Note: The 3.5% figure is a descriptive statistic from historical analysis, not a guaranteed threshold. One exception (Bahrain 2011-2014 with 6%+ participation) has been identified. The rule applies to regime change, not policy change in democracies. Additional sources: https://www.hks.harvard.edu/centers/carr/publications/35-rule-how-small-minority-can-change-world | https://www.hks.harvard.edu/sites/default/files/2024-05/Erica%20Chenoweth_2020-005.pdf | https://www.bbc.com/future/article/20190513-it-only-takes-35-of-people-to-change-the-world | https://en.wikipedia.org/wiki/3.5%25_rule

68.

NHGRI. Human genome project and CRISPR discovery. NHGRI https://www.genome.gov/11006929/2003-release-international-consortium-completes-hgp (2003)

Your DNA is 3 billion base pairs Read the entire code (Human Genome Project, completed 2003) Learned to edit it (CRISPR, discovered 2012) Additional sources: https://www.genome.gov/11006929/2003-release-international-consortium-completes-hgp | https://www.nobelprize.org/prizes/chemistry/2020/press-release/

69.

PMC. Only 12% of human interactome targeted. PMC https://pmc.ncbi.nlm.nih.gov/articles/PMC10749231/ (2023)

Mapping 350,000+ clinical trials showed that only 12% of the human interactome has ever been targeted by drugs. Additional sources: https://pmc.ncbi.nlm.nih.gov/articles/PMC10749231/

70.

WHO. ICD-10 code count ( 14,000). WHO https://icd.who.int/browse10/2019/en (2019)

The ICD-10 classification contains approximately 14,000 codes for diseases, signs and symptoms. Additional sources: https://icd.who.int/browse10/2019/en

71.

Wikipedia. Longevity escape velocity (LEV) - maximum human life extension potential. Wikipedia: Longevity Escape Velocity https://en.wikipedia.org/wiki/Longevity_escape_velocity

Longevity escape velocity: Hypothetical point where medical advances extend life expectancy faster than time passes Term coined by Aubrey de Grey (biogerontologist) in 2004 paper; concept from David Gobel (Methuselah Foundation) Current progress: Science adds 3 months to lifespan per year; LEV requires adding >1 year per year Sinclair (Harvard): "There is no biological upper limit to age" - first person to live to 150 may already be born De Grey: 50% chance of reaching LEV by mid-to-late 2030s; SENS approach = damage repair rather than slowing damage Kurzweil (2024): LEV by 2029-2035, AI will simulate biological processes to accelerate solutions George Church: LEV "in a decade or two" via age-reversal clinical trials Natural lifespan cap: 120-150 years (Jeanne Calment record: 122); engineering approach could bypass via damage repair Key mechanisms: Epigenetic reprogramming, senolytic drugs, stem cell therapy, gene therapy, AI-driven drug discovery Current record: Jeanne Calment (122 years, 164 days) - record unbroken since 1997 Note: LEV is theoretical but increasingly plausible given demonstrated age reversal in mice (109% lifespan extension) and human cells (30-year epigenetic age reversal) Additional sources: https://en.wikipedia.org/wiki/Longevity_escape_velocity | https://pmc.ncbi.nlm.nih.gov/articles/PMC423155/ | https://www.popularmechanics.com/science/a36712084/can-science-cure-death-longevity/ | https://www.diamandis.com/blog/longevity-escape-velocity

72.

OpenSecrets. Lobbyist statistics for washington d.c. OpenSecrets: Lobbying in US https://en.wikipedia.org/wiki/Lobbying_in_the_United_States

Registered lobbyists: Over 12,000 (some estimates); 12,281 registered (2013) Former government employees as lobbyists: 2,200+ former federal employees (1998-2004), including 273 former White House staffers, 250 former Congress members & agency heads Congressional revolving door: 43% (86 of 198) lawmakers who left 1998-2004 became lobbyists; currently 59% leaving to private sector work for lobbying/consulting firms/trade groups Executive branch: 8% were registered lobbyists at some point before/after government service Additional sources: https://en.wikipedia.org/wiki/Lobbying_in_the_United_States | https://www.opensecrets.org/revolving-door | https://www.citizen.org/article/revolving-congress/ | https://www.propublica.org/article/we-found-a-staggering-281-lobbyists-whove-worked-in-the-trump-administration

73.

Vaccines, M. Measles vaccination ROI. MDPI Vaccines https://www.mdpi.com/2076-393X/12/11/1210 (2024)

Single measles vaccination: 167:1 benefit-cost ratio. MMR (measles-mumps-rubella) vaccination: 14:1 ROI. Historical US elimination efforts (1966-1974): benefit-cost ratio of 10.3:1 with net benefits exceeding USD 1.1 billion (1972 dollars, or USD 8.0 billion in 2023 dollars). 2-dose MMR programs show direct benefit/cost ratio of 14.2 with net savings of $5.3 billion, and 26.0 from societal perspectives with net savings of $11.6 billion. Additional sources: https://www.mdpi.com/2076-393X/12/11/1210 | https://www.tandfonline.com/doi/full/10.1080/14760584.2024.2367451

74.

Organization, W. H. Mental health global burden. World Health Organization https://www.who.int/news/item/28-09-2001-the-world-health-report-2001-mental-disorders-affect-one-in-four-people (2022)

One in four people in the world will be affected by mental or neurological disorders at some point in their lives, representing [approximately] 30% of the global burden of disease. Additional sources: https://www.who.int/news/item/28-09-2001-the-world-health-report-2001-mental-disorders-affect-one-in-four-people

75.

Institute, S. I. P. R. Trends in world military expenditure, 2023. (2024).

76.

Orphanet Journal of Rare Diseases (2024), C. from. Diseases getting first effective treatment each year. Calculated from Orphanet Journal of Rare Diseases (2024) https://ojrd.biomedcentral.com/articles/10.1186/s13023-024-03398-1 (2024)

Under the current system, approximately 10-15 diseases per year receive their FIRST effective treatment. Calculation: 5% of 7,000 rare diseases ( 350) have FDA-approved treatment, accumulated over 40 years of the Orphan Drug Act = 9 rare diseases/year. Adding 5-10 non-rare diseases that get first treatments yields 10-20 total. FDA approves 50 drugs/year, but many are for diseases that already have treatments (me-too drugs, second-line therapies). Only 15 represent truly FIRST treatments for previously untreatable conditions.

77.

NIH. NIH budget (FY 2025). NIH https://www.nih.gov/about-nih/organization/budget (2024)

The budget total of $47.7 billion also includes$1.412 billion derived from PHS Evaluation financing... Additional sources: https://www.nih.gov/about-nih/organization/budget | https://officeofbudget.od.nih.gov/

78.

al., B. et. NIH spending on clinical trials: 3.3%. Bentley et al. https://www.fiercebiotech.com/biotech/nih-spending-clinical-trials-reached-81b-over-decade (2023)

NIH spent $8.1 billion on clinical trials for approved drugs (2010-2019), representing 3.3% of relevant NIH spending. Additional sources: https://www.fiercebiotech.com/biotech/nih-spending-clinical-trials-reached-81b-over-decade | https://www.fiercebiotech.com/biotech/nih-spending-clinical-trials-reached-81b-over-decade

79.

PMC. Standard medical research ROI ($20k-$100k/QALY). PMC: Cost-effectiveness Thresholds Used by Study Authors https://pmc.ncbi.nlm.nih.gov/articles/PMC10114019/ (1990)

Typical cost-effectiveness thresholds for medical interventions in rich countries range from $50,000 to $150,000 per QALY. The Institute for Clinical and Economic Review (ICER) uses a $100,000-$150,000/QALY threshold for value-based pricing. Between 1990-2021, authors increasingly cited $100,000 (47% by 2020-21) or $150,000 (24% by 2020-21) per QALY as benchmarks for cost-effectiveness. Additional sources: https://pmc.ncbi.nlm.nih.gov/articles/PMC10114019/ | https://icer.org/our-approach/methods-process/cost-effectiveness-the-qaly-and-the-evlyg/

80.

Institute, M. RECOVERY trial 82× cost reduction. Manhattan Institute: Slow Costly Trials https://manhattan.institute/article/slow-costly-clinical-trials-drag-down-biomedical-breakthroughs

RECOVERY trial: $500 per patient ($20M for 48,000 patients = $417/patient) Typical clinical trial: $41,000 median per-patient cost Cost reduction: 80-82× cheaper ($41,000 ÷ $500 ≈ 82×) Efficiency: $50 per patient per answer (10 therapeutics tested, 4 effective) Dexamethasone estimated to save >630,000 lives Additional sources: https://manhattan.institute/article/slow-costly-clinical-trials-drag-down-biomedical-breakthroughs | https://pmc.ncbi.nlm.nih.gov/articles/PMC9293394/

81.

Trials. Patient willingness to participate in clinical trials. Trials: Patients’ Willingness Survey https://trialsjournal.biomedcentral.com/articles/10.1186/s13063-015-1105-3

Recent surveys: 49-51% willingness (2020-2022) - dramatic drop from 85% (2019) during COVID-19 pandemic Cancer patients when approached: 88% consented to trials (Royal Marsden Hospital) Study type variation: 44.8% willing for drug trial, 76.2% for diagnostic study Top motivation: "Learning more about my health/medical condition" (67.4%) Top barrier: "Worry about experiencing side effects" (52.6%) Additional sources: https://trialsjournal.biomedcentral.com/articles/10.1186/s13063-015-1105-3 | https://www.appliedclinicaltrialsonline.com/view/industry-forced-to-rethink-patient-participation-in-trials | https://pmc.ncbi.nlm.nih.gov/articles/PMC7183682/

82.

CSDD, T. Cost of drug development.

Various estimates suggest $1.0 - $2.5 billion to bring a new drug from discovery through FDA approval, spread across 10 years. Tufts Center for the Study of Drug Development often cited for $1.0 - $2.6 billion/drug. Industry reports (IQVIA, Deloitte) also highlight $2+ billion figures.

83.

Health, V. in. Average lifetime revenue per successful drug. Value in Health: Sales Revenues for New Therapeutic Agents02754-2/fulltext) https://www.valueinhealthjournal.com/article/S1098-3015(24

Study of 361 FDA-approved drugs from 1995-2014 (median follow-up 13.2 years): Mean lifetime revenue: $15.2 billion per drug Median lifetime revenue: $6.7 billion per drug Revenue after 5 years: $3.2 billion (mean) Revenue after 10 years: $9.5 billion (mean) Revenue after 15 years: $19.2 billion (mean) Distribution highly skewed: top 25 drugs (7%) accounted for 38% of total revenue ($2.1T of $5.5T) Additional sources: https://www.valueinhealthjournal.com/article/S1098-3015(24 | https://www.sciencedirect.com/science/article/pii/S1098301524027542

84.

Lichtenberg, F. R. How many life-years have new drugs saved? A three-way fixed-effects analysis of 66 diseases in 27 countries, 2000-2013. International Health 11, 403–416 (2019)

Using 3-way fixed-effects methodology (disease-country-year) across 66 diseases in 22 countries, this study estimates that drugs launched after 1981 saved 148.7 million life-years in 2013 alone. The regression coefficients for drug launches 0-11 years prior (beta=-0.031, SE=0.008) and 12+ years prior (beta=-0.057, SE=0.013) on years of life lost are highly significant (p<0.0001). Confidence interval for life-years saved: 79.4M-239.8M (95 percent CI) based on propagated standard errors from Table 2.

85.

Deloitte. Pharmaceutical r&d return on investment (ROI). Deloitte: Measuring Pharmaceutical Innovation 2025 https://www.deloitte.com/ch/en/Industries/life-sciences-health-care/research/measuring-return-from-pharmaceutical-innovation.html (2025)

Deloitte’s annual study of top 20 pharma companies by R&D spend (2010-2024): 2024 ROI: 5.9% (second year of growth after decade of decline) 2023 ROI: 4.3% (estimated from trend) 2022 ROI: 1.2% (historic low since study began, 13-year low) 2021 ROI: 6.8% (record high, inflated by COVID-19 vaccines/treatments) Long-term trend: Declining for over a decade before 2023 recovery Average R&D cost per asset: $2.3B (2022), $2.23B (2024) These returns (1.2-5.9% range) fall far below typical corporate ROI targets (15-20%) Additional sources: https://www.deloitte.com/ch/en/Industries/life-sciences-health-care/research/measuring-return-from-pharmaceutical-innovation.html | https://www.prnewswire.com/news-releases/deloittes-13th-annual-pharmaceutical-innovation-report-pharma-rd-return-on-investment-falls-in-post-pandemic-market-301738807.html | https://hitconsultant.net/2023/02/16/pharma-rd-roi-falls-to-lowest-level-in-13-years/

86.

Discovery, N. R. D. Drug trial success rate from phase i to approval. Nature Reviews Drug Discovery: Clinical Success Rates https://www.nature.com/articles/nrd.2016.136 (2016)

Overall Phase I to approval: 10-12.8% (conventional wisdom 10%, studies show 12.8%) Recent decline: Average LOA now 6.7% for Phase I (2014-2023 data) Leading pharma companies: 14.3% average LOA (range 8-23%) Varies by therapeutic area: Oncology 3.4%, CNS/cardiovascular lowest at Phase III Phase-specific success: Phase I 47-54%, Phase II 28-34%, Phase III 55-70% Note: 12% figure accurate for historical average. Recent data shows decline to 6.7%, with Phase II as primary attrition point (28% success) Additional sources: https://www.nature.com/articles/nrd.2016.136 | https://pmc.ncbi.nlm.nih.gov/articles/PMC6409418/ | https://academic.oup.com/biostatistics/article/20/2/273/4817524

87.

SofproMed. Phase 3 cost per trial range. SofproMed https://www.sofpromed.com/how-much-does-a-clinical-trial-cost

Phase 3 clinical trials cost between $20 million and $282 million per trial, with significant variation by therapeutic area and trial complexity. Additional sources: https://www.sofpromed.com/how-much-does-a-clinical-trial-cost | https://www.cbo.gov/publication/57126

88.

PMC. Pragmatic trial cost per patient (median $97). PMC: Costs of Pragmatic Clinical Trials https://pmc.ncbi.nlm.nih.gov/articles/PMC6508852/

The median cost per participant was $97 (IQR $19–$478), based on 2015 dollars. Systematic review of 64 embedded pragmatic clinical trials. 25% of trials cost <$19/patient; 10 trials exceeded $1,000/patient. U.S. studies median $187 vs non-U.S. median $27. Additional sources: https://pmc.ncbi.nlm.nih.gov/articles/PMC6508852/

89.

WHO. Polio vaccination ROI. WHO https://www.who.int/news-room/feature-stories/detail/sustaining-polio-investments-offers-a-high-return (2019)

For every dollar spent, the return on investment is nearly US$ 39." Total investment cost of US$ 7.5 billion generates projected economic and social benefits of US$ 289.2 billion from sustaining polio assets and integrating them into expanded immunization, surveillance and emergency response programmes across 8 priority countries (Afghanistan, Iraq, Libya, Pakistan, Somalia, Sudan, Syria, Yemen). Additional sources: https://www.who.int/news-room/feature-stories/detail/sustaining-polio-investments-offers-a-high-return

90.

Olson, M. Big bills left on the sidewalk: Why some nations are rich, and others poor. Journal of Economic Perspectives 10, 3–24 (1996)

Differences between rich and poor countries are primarily due to institutions and policies, not factors of production.

91.

Hayek, F. A. The use of knowledge in society. American Economic Review 35, 519–530 (1945)

The knowledge of the circumstances which we must make use of never exists in concentrated or integrated form but solely as dispersed bits of incomplete and frequently contradictory knowledge which all the separate individuals possess.

92.

Kydland, F. E. & Prescott, E. C. Rules rather than discretion: The inconsistency of optimal plans. Journal of Political Economy 85, 473–492 (1977)

Time-inconsistency describes situations where, with the passing of time, policies that were determined to be optimal yesterday are no longer perceived to be optimal today and are not implemented... This insight shifted the focus of policy analysis from the study of individual policy decisions to the design of institutions that mitigate the time consistency problem.

93.

ICRC. International campaign to ban landmines (ICBL) - ottawa treaty (1997). ICRC https://www.icrc.org/en/doc/resources/documents/article/other/57jpjn.htm (1997)

ICBL: Founded 1992 by 6 NGOs (Handicap International, Human Rights Watch, Medico International, Mines Advisory Group, Physicians for Human Rights, Vietnam Veterans of America Foundation) Started with ONE staff member: Jody Williams as founding coordinator Grew to 1,000+ organizations in 60 countries by 1997 Ottawa Process: 14 months (October 1996 - December 1997) Convention signed by 122 states on December 3, 1997; entered into force March 1, 1999 Achievement: Nobel Peace Prize 1997 (shared by ICBL and Jody Williams) Government funding context: Canada established $100M CAD Canadian Landmine Fund over 10 years (1997); International donors provided $169M in 1997 for mine action (up from $100M in 1996) Additional sources: https://www.icrc.org/en/doc/resources/documents/article/other/57jpjn.htm | https://en.wikipedia.org/wiki/International_Campaign_to_Ban_Landmines | https://www.nobelprize.org/prizes/peace/1997/summary/ | https://un.org/press/en/1999/19990520.MINES.BRF.html | https://www.the-monitor.org/en-gb/reports/2003/landmine-monitor-2003/mine-action-funding.aspx

94.

OpenSecrets. Revolving door: Former members of congress. (2024)

388 former members of Congress are registered as lobbyists. Nearly 5,400 former congressional staffers have left Capitol Hill to become federal lobbyists in the past 10 years. Additional sources: https://www.opensecrets.org/revolving-door

95.

Kinch, M. S. & Griesenauer, R. H. Lost medicines: A longer view of the pharmaceutical industry with the potential to reinvigorate discovery. Drug Discovery Today 24, 875–880 (2019)

Research identified 1,600+ medicines available in 1962. The 1950s represented industry high-water mark with >30 new products in five of ten years; this rate would not be replicated until late 1990s. More than half (880) of these medicines were lost following implementation of Kefauver-Harris Amendment. The peak of 1962 would not be seen again until early 21st century. By 2016 number of organizations actively involved in R&D at level not seen since 1914.

96.

Wikipedia. US military spending reduction after WWII. Wikipedia https://en.wikipedia.org/wiki/Demobilization_of_United_States_Armed_Forces_after_World_War_II (2020)

Peaking at over $81 billion in 1945, the U.S. military budget plummeted to approximately $13 billion by 1948, representing an 84% decrease. The number of personnel was reduced almost 90%, from more than 12 million to about 1.5 million between mid-1945 and mid-1947. Defense spending exceeded 41 percent of GDP in 1945. After World War II, the US reduced military spending to 7.2 percent of GDP by 1948. Defense spending doubled from the 1948 low to 15 percent at the height of the Korean War in 1953. Additional sources: https://en.wikipedia.org/wiki/Demobilization_of_United_States_Armed_Forces_after_World_War_II | https://www.americanprogress.org/article/a-historical-perspective-on-military-budgets/ | https://www.stlouisfed.org/on-the-economy/2020/february/war-highest-military-spending-measured | https://www.usgovernmentspending.com/defense_spending_history

97.

Baily, M. N. Pre-1962 drug development costs (baily 1972). Baily (1972) https://samizdathealth.org/wp-content/uploads/2020/12/hlthaff.1.2.6.pdf (1972)

Pre-1962: Average cost per new chemical entity (NCE) was $6.5 million (1980 dollars) Inflation-adjusted to 2024 dollars: $6.5M (1980) ≈ $22.5M (2024), using CPI multiplier of 3.46× Real cost increase (inflation-adjusted): $22.5M (pre-1962) → $2,600M (2024) = 116× increase Note: This represents the most comprehensive academic estimate of pre-1962 drug development costs based on empirical industry data Additional sources: https://samizdathealth.org/wp-content/uploads/2020/12/hlthaff.1.2.6.pdf

98.

Numbers, T. by. Pre-1962 physician-led clinical trials. Think by Numbers: How Many Lives Does FDA Save? https://thinkbynumbers.org/health/how-many-net-lives-does-the-fda-save/ (1966)

Pre-1962: Physicians could report real-world evidence directly 1962 Drug Amendments replaced "premarket notification" with "premarket approval", requiring extensive efficacy testing Impact: New regulatory clampdown reduced new treatment production by 70%; lifespan growth declined from 4 years/decade to 2 years/decade Drug Efficacy Study Implementation (DESI): NAS/NRC evaluated 3,400+ drugs approved 1938-1962 for safety only; reviewed >3,000 products, >16,000 therapeutic claims FDA has had authority to accept real-world evidence since 1962, clarified by 21st Century Cures Act (2016) Note: Specific "144,000 physicians" figure not verified in sources Additional sources: https://thinkbynumbers.org/health/how-many-net-lives-does-the-fda-save/ | https://www.fda.gov/drugs/enforcement-activities-fda/drug-efficacy-study-implementation-desi | http://www.nasonline.org/about-nas/history/archives/collections/des-1966-1969-1.html

99.

GAO. 95% of diseases have 0 FDA-approved treatments. GAO https://www.gao.gov/products/gao-25-106774 (2025)

95% of diseases have no treatment Additional sources: https://www.gao.gov/products/gao-25-106774 | https://globalgenes.org/rare-disease-facts/

100.

Oren Cass, M. I. RECOVERY trial cost per patient. Oren Cass https://manhattan.institute/article/slow-costly-clinical-trials-drag-down-biomedical-breakthroughs (2023)

The RECOVERY trial, for example, cost only about $500 per patient... By contrast, the median per-patient cost of a pivotal trial for a new therapeutic is around$41,000. Additional sources: https://manhattan.institute/article/slow-costly-clinical-trials-drag-down-biomedical-breakthroughs

101.

al., N. E. Á. et. RECOVERY trial global lives saved ( 1 million). NHS England: 1 Million Lives Saved https://www.england.nhs.uk/2021/03/covid-treatment-developed-in-the-nhs-saves-a-million-lives/ (2021)

Dexamethasone saved 1 million lives worldwide (NHS England estimate, March 2021, 9 months after discovery). UK alone: 22,000 lives saved. Methodology: Águas et al. Nature Communications 2021 estimated 650,000 lives (range: 240,000-1,400,000) for July-December 2020 alone, based on RECOVERY trial mortality reductions (36% for ventilated, 18% for oxygen-only patients) applied to global COVID hospitalizations. June 2020 announcement: Dexamethasone reduced deaths by up to 1/3 (ventilated patients), 1/5 (oxygen patients). Impact immediate: Adopted into standard care globally within hours of announcement. Additional sources: https://www.england.nhs.uk/2021/03/covid-treatment-developed-in-the-nhs-saves-a-million-lives/ | https://www.nature.com/articles/s41467-021-21134-2 | https://pharmaceutical-journal.com/article/news/steroid-has-saved-the-lives-of-one-million-covid-19-patients-worldwide-figures-show | https://www.recoverytrial.net/news/recovery-trial-celebrates-two-year-anniversary-of-life-saving-dexamethasone-result

102.

Museum, N. S. 11. M. &. September 11 attack facts. (2024)

2,977 people were killed in the September 11, 2001 attacks: 2,753 at the World Trade Center, 184 at the Pentagon, and 40 passengers and crew on United Flight 93 in Shanksville, Pennsylvania.

103.

Bank, W. World bank singapore economic data. World Bank https://data.worldbank.org/country/singapore (2024)

Singapore GDP per capita (2023): $82,000 - among highest in the world Government spending: 15% of GDP (vs US 38%) Life expectancy: 84.1 years (vs US 77.5 years) Singapore demonstrates that low government spending can coexist with excellent outcomes Additional sources: https://data.worldbank.org/country/singapore

104.

Fund, I. M. IMF singapore government spending data. (2024)

Singapore government spending is approximately 15% of GDP This is 23 percentage points lower than the United States (38%) Despite lower spending, Singapore achieves excellent outcomes: - Life expectancy: 84.1 years (vs US 77.5) - Low crime, world-class infrastructure, AAA credit rating Additional sources: https://www.imf.org/en/Countries/SGP

105.

Organization, W. H. WHO life expectancy data by country. (2024)

Life expectancy at birth varies significantly among developed nations: Switzerland: 84.0 years (2023) Singapore: 84.1 years (2023) Japan: 84.3 years (2023) United States: 77.5 years (2023) - 6.5 years below Switzerland, Singapore Global average: 73 years Note: US spends more per capita on healthcare than any other nation, yet achieves lower life expectancy Additional sources: https://www.who.int/data/gho/data/themes/mortality-and-global-health-estimates/ghe-life-expectancy-and-healthy-life-expectancy

106.

CSIS. Smallpox eradication ROI. CSIS https://www.csis.org/analysis/smallpox-eradication-model-global-cooperation.

107.

PMC. Contribution of smoking reduction to life expectancy gains. PMC: Benefits Smoking Cessation Longevity https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1447499/ (2012)

Population-level: Up to 14% (9% men, 14% women) of total life expectancy gain since 1960 due to tobacco control efforts Individual cessation benefits: Quitting at age 35 adds 6.9-8.5 years (men), 6.1-7.7 years (women) vs continuing smokers By cessation age: Age 25-34 = 10 years gained; age 35-44 = 9 years; age 45-54 = 6 years; age 65 = 2.0 years (men), 3.7 years (women) Cessation before age 40: Reduces death risk by 90% Long-term cessation: 10+ years yields survival comparable to never smokers, averts 10 years of life lost Recent cessation: <3 years averts 5 years of life lost Additional sources: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1447499/ | https://www.cdc.gov/pcd/issues/2012/11_0295.htm | https://www.ajpmonline.org/article/S0749-3797(24 | https://www.nejm.org/doi/full/10.1056/NEJMsa1211128

108.

ICER. Value per QALY (standard economic value). ICER https://icer.org/wp-content/uploads/2024/02/Reference-Case-4.3.25.pdf (2024)

Standard economic value per QALY: $100,000–$150,000. This is the US and global standard willingness-to-pay threshold for interventions that add costs. Dominant interventions (those that save money while improving health) are favorable regardless of this threshold. Additional sources: https://icer.org/wp-content/uploads/2024/02/Reference-Case-4.3.25.pdf

109.

GAO. Annual cost of u.s. Sugar subsidies. GAO: Sugar Program https://www.gao.gov/products/gao-24-106144

Consumer costs: $2.5-3.5 billion per year (GAO estimate) Net economic cost: $1 billion per year 2022: US consumers paid 2X world price for sugar Program costs $3-4 billion/year but no federal budget impact (costs passed directly to consumers via higher prices) Employment impact: 10,000-20,000 manufacturing jobs lost annually in sugar-reliant industries (confectionery, etc.) Multiple studies confirm: Sweetener Users Association ($2.9-3.5B), AEI ($2.4B consumer cost), Beghin & Elobeid ($2.9-3.5B consumer surplus) Additional sources: https://www.gao.gov/products/gao-24-106144 | https://www.heritage.org/agriculture/report/the-us-sugar-program-bad-consumers-bad-agriculture-and-bad-america | https://www.aei.org/articles/the-u-s-spends-4-billion-a-year-subsidizing-stalinist-style-domestic-sugar-production/

110.

Bank, W. Swiss military budget as percentage of GDP. World Bank: Military Expenditure https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?locations=CH

2023: 0.70272% of GDP (World Bank) 2024: CHF 5.95 billion official military spending When including militia system costs: 1% GDP (CHF 8.75B) Comparison: Near bottom in Europe; only Ireland, Malta, Moldova spend less (excluding microstates with no armies) Additional sources: https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?locations=CH | https://www.avenir-suisse.ch/en/blog-defence-spending-switzerland-is-in-better-shape-than-it-seems/ | https://tradingeconomics.com/switzerland/military-expenditure-percent-of-gdp-wb-data.html

111.

Bank, W. Switzerland vs. US GDP per capita comparison. World Bank: Switzerland GDP Per Capita https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=CH

2024 GDP per capita (PPP-adjusted): Switzerland $93,819 vs United States $75,492 Switzerland’s GDP per capita 24% higher than US when adjusted for purchasing power parity Nominal 2024: Switzerland $103,670 vs US $85,810 Additional sources: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=CH | https://tradingeconomics.com/switzerland/gdp-per-capita-ppp | https://www.theglobaleconomy.com/USA/gdp_per_capita_ppp/

112.

Economic Co-operation, O. for & Development. OECD government spending as percentage of GDP. (2024)

OECD government spending data shows significant variation among developed nations: United States: 38.0% of GDP (2023) Switzerland: 35.0% of GDP - 3 percentage points lower than US Singapore: 15.0% of GDP - 23 percentage points lower than US (per IMF data) OECD average: approximately 40% of GDP Additional sources: https://data.oecd.org/gga/general-government-spending.htm

113.

Economic Co-operation, O. for & Development. OECD median household income comparison. (2024)

Median household disposable income varies significantly across OECD nations: United States: $77,500 (2023) Switzerland: $55,000 PPP-adjusted (lower nominal but comparable purchasing power) Singapore: $75,000 PPP-adjusted Additional sources: https://data.oecd.org/hha/household-disposable-income.htm

114.

Institute, C. Chance of dying from terrorism statistic. Cato Institute: Terrorism and Immigration Risk Analysis https://www.cato.org/policy-analysis/terrorism-immigration-risk-analysis

Chance of American dying in foreign-born terrorist attack: 1 in 3.6 million per year (1975-2015) Including 9/11 deaths; annual murder rate is 253x higher than terrorism death rate More likely to die from lightning strike than foreign terrorism Note: Comprehensive 41-year study shows terrorism risk is extremely low compared to everyday dangers Additional sources: https://www.cato.org/policy-analysis/terrorism-immigration-risk-analysis | https://www.nbcnews.com/news/us-news/you-re-more-likely-die-choking-be-killed-foreign-terrorists-n715141

115.

Wikipedia. Thalidomide scandal: Worldwide cases and mortality. Wikipedia https://en.wikipedia.org/wiki/Thalidomide_scandal

The total number of embryos affected by the use of thalidomide during pregnancy is estimated at 10,000, of whom about 40% died around the time of birth. More than 10,000 children in 46 countries were born with deformities such as phocomelia. Additional sources: https://en.wikipedia.org/wiki/Thalidomide_scandal

116.

One, P. Health and quality of life of thalidomide survivors as they age. PLOS One https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0210222 (2019)

Study of thalidomide survivors documenting ongoing disability impacts, quality of life, and long-term health outcomes. Survivors (now in their 60s) continue to experience significant disability from limb deformities, organ damage, and other effects. Additional sources: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0210222

117.

Bureau, U. C. Historical world population estimates. US Census Bureau https://www.census.gov/data/tables/time-series/demo/international-programs/historical-est-worldpop.html

US Census Bureau historical estimates of world population by country and region (1950-2050). US population in 1960: 180 million of 3 billion worldwide (6%). Additional sources: https://www.census.gov/data/tables/time-series/demo/international-programs/historical-est-worldpop.html

118.

NCBI, F. S. via. Trial costs, FDA study. FDA Study via NCBI https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6248200/

Overall, the 138 clinical trials had an estimated median (IQR) cost of $19.0 million ($12.2 million-$33.1 million)... The clinical trials cost a median (IQR) of$41,117 ($31,802-$82,362) per patient. Additional sources: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6248200/

119.

GBD 2019 Diseases and Injuries Collaborators. Global burden of disease study 2019: Disability weights. The Lancet 396, 1204–1222 (2020)

Disability weights for 235 health states used in Global Burden of Disease calculations. Weights range from 0 (perfect health) to 1 (death equivalent). Chronic conditions like diabetes (0.05-0.35), COPD (0.04-0.41), depression (0.15-0.66), and cardiovascular disease (0.04-0.57) show substantial variation by severity. Treatment typically reduces disability weights by 50-80 percent for manageable chronic conditions.

120.

EPI. CEO compensation. EPI https://www.epi.org/blog/ceo-pay-increased-in-2024-and-is-now-281-times-that-of-the-typical-worker-new-epi-landing-page-has-all-the-details/ (2024)

S&P 500 average: $18.9M (2024) | $9,087/hour | 285:1 CEO-to-worker ratio Additional sources: https://www.epi.org/blog/ceo-pay-increased-in-2024-and-is-now-281-times-that-of-the-typical-worker-new-epi-landing-page-has-all-the-details/

121.

WHO. Annual global economic burden of alzheimer’s and other dementias. WHO: Dementia Fact Sheet https://www.who.int/news-room/fact-sheets/detail/dementia (2019)

Global cost: $1.3 trillion (2019 WHO-commissioned study) 50% from informal caregivers (family/friends, 5 hrs/day) 74% of costs in high-income countries despite 61% of patients in LMICs $818B (2010) → $1T (2018) → $1.3T (2019) - rapid growth Note: Costs increased 35% from 2010-2015 alone. Informal care represents massive hidden economic burden Additional sources: https://www.who.int/news-room/fact-sheets/detail/dementia | https://alz-journals.onlinelibrary.wiley.com/doi/10.1002/alz.12901

122.

Oncology, J. Annual global economic burden of cancer. JAMA Oncology: Global Cost 2020-2050 https://jamanetwork.com/journals/jamaoncology/fullarticle/2801798 (2020)

2020-2050 projection: $25.2 trillion total ($840B/year average) 2010 annual cost: $1.16 trillion (direct costs only) Recent estimate: $3 trillion/year (all costs included) Top 5 cancers: lung (15.4%), colon/rectum (10.9%), breast (7.7%), liver (6.5%), leukemia (6.3%) Note: China/US account for 45% of global burden; 75% of deaths in LMICs but only 50.0% of economic cost Additional sources: https://jamanetwork.com/journals/jamaoncology/fullarticle/2801798 | https://www.nature.com/articles/d41586-023-00634-9

123.

CDC. U.s. Chronic disease healthcare spending. CDC https://www.cdc.gov/chronic-disease/data-research/facts-stats/index.html

Chronic diseases account for 90% of U.S. healthcare spending ( $3.7T/year). Additional sources: https://www.cdc.gov/chronic-disease/data-research/facts-stats/index.html

124.

Care, D. Annual global economic burden of diabetes. Diabetes Care: Global Economic Burden https://diabetesjournals.org/care/article/41/5/963/36522/Global-Economic-Burden-of-Diabetes-in-Adults

2015: $1.3 trillion (1.8% of global GDP) 2030 projections: $2.1T-2.5T depending on scenario IDF health expenditure: $760B (2019) → $845B (2045 projected) 2/3 direct medical costs ($857B), 1/3 indirect costs (lost productivity) Note: Costs growing rapidly; expected to exceed $2T by 2030 Additional sources: https://diabetesjournals.org/care/article/41/5/963/36522/Global-Economic-Burden-of-Diabetes-in-Adults | https://www.thelancet.com/journals/landia/article/PIIS2213-8587(17

125.

World Bank, B. of E. A. US GDP 2024 ($28.78 trillion). World Bank https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US (2024)

US GDP reached $28.78 trillion in 2024, representing approximately 26% of global GDP. Additional sources: https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US | https://www.bea.gov/news/2024/gross-domestic-product-fourth-quarter-and-year-2024-advance-estimate

126.

Cardiology, I. J. of. Annual global economic burden of heart disease. Int’l Journal of Cardiology: Global Heart Failure Burden02238-9/abstract) https://www.internationaljournalofcardiology.com/article/S0167-5273(13 (2050)

Heart failure alone: $108 billion/year (2012 global analysis, 197 countries) US CVD: $555B (2016) → projected $1.8T by 2050 LMICs total CVD loss: $3.7T cumulative (2011-2015, 5-year period) CVD is costliest disease category in most developed nations Note: No single $2.1T global figure found; estimates vary widely by scope and year Additional sources: https://www.internationaljournalofcardiology.com/article/S0167-5273(13 | https://www.ahajournals.org/doi/10.1161/CIR.0000000000001258

127.

CSV, S. U. L. E. F. B. 1543-2019. US life expectancy growth 1880-1960: 3.82 years per decade. (2019)

Pre-1962: 3.82 years/decade Post-1962: 1.54 years/decade Reduction: 60% decline in life expectancy growth rate Additional sources: https://ourworldindata.org/life-expectancy | https://www.mortality.org/ | https://www.cdc.gov/nchs/nvss/mortality_tables.htm

128.

CSV, S. U. L. E. F. B. 1543-2019. Post-1962 slowdown in life expectancy gains. (2019)

Pre-1962 (1880-1960): 3.82 years/decade Post-1962 (1962-2019): 1.54 years/decade Reduction: 60% decline Temporal correlation: Slowdown occurred immediately after 1962 Kefauver-Harris Amendment See detailed calculation: [life-expectancy-increase-pre-1962](#life-expectancy-increase-pre-1962) Additional sources: https://ourworldindata.org/life-expectancy | https://www.mortality.org/ | https://www.cdc.gov/nchs/nvss/mortality_tables.htm

129.

Disease Control, C. for & Prevention. US life expectancy 2023. (2024)

US life expectancy at birth was 77.5 years in 2023 Male life expectancy: 74.8 years Female life expectancy: 80.2 years This is 6-7 years lower than peer developed nations despite higher healthcare spending Additional sources: https://www.cdc.gov/nchs/fastats/life-expectancy.htm

130.

Bureau, U. C. US median household income 2023. (2024)

US median household income was $77,500 in 2023 Real median household income declined 0.8% from 2022 Gini index: 0.467 (income inequality measure) Additional sources: https://www.census.gov/library/publications/2024/demo/p60-282.html

131.

Statista. US military budget as percentage of GDP. Statista https://www.statista.com/statistics/262742/countries-with-the-highest-military-spending/ (2024)

U.S. military spending amounted to 3.5% of GDP in 2024. In 2024, the U.S. spent nearly $1 trillion on its military budget, equal to 3.4% of GDP. Additional sources: https://www.statista.com/statistics/262742/countries-with-the-highest-military-spending/ | https://www.sipri.org/sites/default/files/2025-04/2504_fs_milex_2024.pdf

132.

Bureau, U. C. Number of registered or eligible voters in the u.s. US Census Bureau https://www.census.gov/newsroom/press-releases/2025/2024-presidential-election-voting-registration-tables.html (2024)

73.6% (or 174 million people) of the citizen voting-age population was registered to vote in 2024 (Census Bureau). More than 211 million citizens were active registered voters (86.6% of citizen voting age population) according to the Election Assistance Commission. Additional sources: https://www.census.gov/newsroom/press-releases/2025/2024-presidential-election-voting-registration-tables.html | https://www.eac.gov/news/2025/06/30/us-election-assistance-commission-releases-2024-election-administration-and-voting

133.

Senate, U. S. Treaties. U.S. Senate https://www.senate.gov/about/powers-procedures/treaties.htm

The Constitution provides that the president ’shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two-thirds of the Senators present concur’ (Article II, section 2). Treaties are formal agreements with foreign nations that require two-thirds Senate approval. 67 senators (two-thirds of 100) must vote to ratify a treaty for it to take effect. Additional sources: https://www.senate.gov/about/powers-procedures/treaties.htm

134.

Commission, F. E. Statistical summary of 24-month campaign activity of the 2023-2024 election cycle. (2023)

Presidential candidates raised $2 billion; House and Senate candidates raised $3.8 billion and spent $3.7 billion; PACs raised $15.7 billion and spent $15.5 billion. Total federal campaign spending approximately $20 billion. Additional sources: https://www.fec.gov/updates/statistical-summary-of-24-month-campaign-activity-of-the-2023-2024-election-cycle/

135.

OpenSecrets. Federal lobbying hit record $4.4 billion in 2024. (2024)

Total federal lobbying reached record $4.4 billion in 2024. The $150 million increase in lobbying continues an upward trend that began in 2016. Additional sources: https://www.opensecrets.org/news/2025/02/federal-lobbying-set-new-record-in-2024/

136.

Kirk (2011), H. &. Valley of death in drug development. (2011)

The overall failure rate of drugs that passed into Phase 1 trials to final approval is 90%. This lack of translation from promising preclinical findings to success in human trials is known as the "valley of death." Estimated 30-50% of promising compounds never proceed to Phase 2/3 trials primarily due to funding barriers rather than scientific failure. The late-stage attrition rate for oncology drugs is as high as 70% in Phase II and 59% in Phase III trials.

137.

DOT. DOT value of statistical life ($13.6M). DOT: VSL Guidance 2024 https://www.transportation.gov/office-policy/transportation-policy/revised-departmental-guidance-on-valuation-of-a-statistical-life-in-economic-analysis (2024)

Current VSL (2024): $13.7 million (updated from $13.6M) Used in cost-benefit analyses for transportation regulations and infrastructure Methodology updated in 2013 guidance, adjusted annually for inflation and real income VSL represents aggregate willingness to pay for safety improvements that reduce fatalities by one Note: DOT has published VSL guidance periodically since 1993. Current $13.7M reflects 2024 inflation/income adjustments Additional sources: https://www.transportation.gov/office-policy/transportation-policy/revised-departmental-guidance-on-valuation-of-a-statistical-life-in-economic-analysis | https://www.transportation.gov/regulations/economic-values-used-in-analysis

138.

ONE, P. Cost per DALY for vitamin a supplementation. PLOS ONE: Cost-effectiveness of "Golden Mustard" for Treating Vitamin A Deficiency in India (2010) https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0012046 (2010)

India: $23-$50 per DALY averted (least costly intervention, $1,000-$6,100 per death averted) Sub-Saharan Africa (2022): $220-$860 per DALY (Burkina Faso: $220, Kenya: $550, Nigeria: $860) WHO estimates for Africa: $40 per DALY for fortification, $255 for supplementation Uganda fortification: $18-$82 per DALY (oil: $18, sugar: $82) Note: Wide variation reflects differences in baseline VAD prevalence, coverage levels, and whether intervention is supplementation or fortification Additional sources: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0012046 | https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0266495

139.

News, U. Clean water & sanitation (LMICs) ROI. UN News https://news.un.org/en/story/2014/11/484032 (2014).

140.

PMC. Cost-effectiveness threshold ($50,000/QALY). PMC https://pmc.ncbi.nlm.nih.gov/articles/PMC5193154/

The $50,000/QALY threshold is widely used in US health economics literature, originating from dialysis cost benchmarks in the 1980s. In US cost-utility analyses, 77.5% of authors use either $50,000 or $100,000 per QALY as reference points. Most successful health programs cost $3,000-10,000 per QALY. WHO-CHOICE uses GDP per capita multiples (1× GDP/capita = "very cost-effective", 3× GDP/capita = "cost-effective"), which for the US ( $70,000 GDP/capita) translates to $70,000-$210,000/QALY thresholds. Additional sources: https://pmc.ncbi.nlm.nih.gov/articles/PMC5193154/ | https://pmc.ncbi.nlm.nih.gov/articles/PMC9278384/

141.

Institute, I. B. Chronic illness workforce productivity loss. Integrated Benefits Institute 2024 https://www.ibiweb.org/resources/chronic-conditions-in-the-us-workforce-prevalence-trends-and-productivity-impacts (2024)

78.4% of U.S. employees have at least one chronic condition (7% increase since 2021) 58% of employees report physical chronic health conditions 28% of all employees experience productivity loss due to chronic conditions Average productivity loss: $4,798 per employee per year Employees with 3+ chronic conditions miss 7.8 days annually vs 2.2 days for those without Note: 28% productivity loss translates to roughly 11 hours per week (28% of 40-hour workweek) Additional sources: https://www.ibiweb.org/resources/chronic-conditions-in-the-us-workforce-prevalence-trends-and-productivity-impacts | https://www.onemedical.com/mediacenter/study-finds-more-than-half-of-employees-are-living-with-chronic-conditions-including-1-in-3-gen-z-and-millennial-employees/ | https://debeaumont.org/news/2025/poll-the-toll-of-chronic-health-conditions-on-employees-and-workplaces/

142.

CBO. The Budget and Economic Outlook: 2025 to 2035. https://www.cbo.gov/publication/60870 (2025).

143.

U.S. Census Bureau. State and local government finances summary: 2022. (2024).

144.

National Taxpayers Union. Taxpayers will spend 7.1 billion hours and $464 billion on tax compliance in 2025. (2025).

145.

U.S. Department of Transportation. Departmental guidance on valuation of a statistical life in economic analysis. (2024).

146.

Gosse, M. E. Assessing cost-effectiveness in healthcare: History of the $50,000 per QALY threshold. Sustainability Impact Metrics https://ecocostsvalue.com/EVR/img/references%20others/Gosse%202008%20QALY%20threshold%20financial.pdf (2008).

147.

Peterson Foundation. Budget basics: National defense. (2024).

148.

Institute, S. I. P. R. Trends in world military expenditure, 2024. (2024)

NATO members spent $1.506 trillion in 2024 (55% of world military spending). European NATO spent $454 billion. US spent $968 billion. Additional sources: https://www.sipri.org/sites/default/files/2025-04/2504_fs_milex_2024.pdf

149.

National Priorities Project. Take 7: The pentagon fails another audit. (2024).

150.

U.S. Congress. H.r.2961 - audit the pentagon act of 2023. (2023).

151.

Responsible Statecraft. Pentagon can’t account for 63% of nearly $4 trillion in assets. (2024).

152.

GAO. F-35 program lifetime cost: $1.7 trillion. GAO: F-35 Sustainment Costs https://www.gao.gov/products/gao-24-106703 (2024)

F-35 Program lifetime cost: $2.1 trillion (updated April 2024) Sustainment costs: $1.58 trillion (44% increase from 2018 estimate) Procurement costs: $422 billion Covers 94 years of operation (through 2088) for 2,456 aircraft Note: About half the cost increase is due to inflation. This makes the F-35 one of the most expensive military acquisition programs in modern history Additional sources: https://www.gao.gov/products/gao-24-106703 | https://breakingdefense.com/2024/04/f-35-programs-lifetime-price-tag-tops-2-trillion-pentagon-wants-jets-to-fly-longer/

153.

GAO. F-35 Joint Strike Fighter: Actions Needed to Address Late Deliveries and Improve Future Development. https://www.gao.gov/products/gao-25-107632 (2025).

154.

National Priorities Project. Shut them down! Closing military bases is long overdue. (2025).

155.

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