Tuesday, September 20, 2005
Catastrophe in Big Easy Demonstrates Big Government's Failure
"You've got to hand it to the advocates of big government. They're never embarrassed by the failures of government. On the contrary, the state's every malfunction is declared a reason to give government more money and more power.
....it's no accident that governments often fail at their tasks. The incentives are all wrong. Profit-seeking companies are constantly driven to innovate, improve, cut costs, and deliver better service for less money, lest they lose customers to their competitors or even go out of business. Churches and charities are motivated by love and commitment, as well as by the need to satisfy donors or run out of money. Governments can raise taxes or print money. If a government agency fails at its mission, the usual response is to give it more money next year--not a very good incentive for success."
....it's no accident that governments often fail at their tasks. The incentives are all wrong. Profit-seeking companies are constantly driven to innovate, improve, cut costs, and deliver better service for less money, lest they lose customers to their competitors or even go out of business. Churches and charities are motivated by love and commitment, as well as by the need to satisfy donors or run out of money. Governments can raise taxes or print money. If a government agency fails at its mission, the usual response is to give it more money next year--not a very good incentive for success."
