Filed under: Bureaucracy, Conservatism, Democrat Corruption, Economy, History, Politics, Regulation, The United States | Tags: Cafe Hayek, Incentives Matter, Rewarding Failure
From Cafe Hayek:
From page 220 of philosopher Michael Huemer’s powerful 2013 book, The Problem of Political Authority
The general lesson is that if some part of government fails in its function, it will most likely be given greater funding and power. Of course, the purpose of this is not to reward failure; the thinking would be that more money and power will enable the agency to solve the problem. But the effect is that government grows when social problems grow, and thus it is not in the government’s interests to solve society’s problems.
Cafe Hayek added:
I recall long ago hearing David Boaz ask rhetorically about this reality: ‘Can you imagine a worse incentive system than one that rewards failure with higher budgets and punishes success with lower budgets?’ I can’t – yet that’s pretty much the prevailing incentive system for governments around the world.
Have you heard Carly Fiorian talking about “Zero-Based Budgeting?” That’s a serious attempt to rectify the situation.
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