Friday, January 20, 2012

Quote of the Day: Inconsistencies of Public Policies

Bureaucracies typically resist working with other bureaucracies for fear that their own power and budget might decline as a result. If high-ranking politicians wanted to, they could insist on coordinated policymaking. But they don’t, because coordinating does not matter to them. The ultimate goal for a politician running for office is to get elected. From that vantage point, politicians tend to consistently push for policies that will bring them votes, funds or both.

That’s from Chidem Kurdas at the ThinkMarkets, giving us a public choice perspective on the reasons why bureaucracies has the tendency to remain obstinately inefficient and inconsistent. The answer, in short, is all about the incentives guiding the actions of bureaucrats and politicians.

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