Bureaucracy is structured in a hierarchical way, which means there are many levels of authority. This structure is influenced by factors like the Iron Law of Oligarchy and the natural tendency of bureaucracies to expand by adding more layers. In the absence of market competition, seniority often becomes a substitute for talent, leading to promotions based on length of service rather than merit.
1. Hierarchical Structure:
• Information flows from lower to higher levels in a bureaucracy.
• Higher-ranking officials filter and elevate the most relevant information to top leaders, like the President.
• This model assumes bureaucrats have the incentive to provide the best information, which may not always be the case.
2. Incentives and Truth:
• Bureaucrats often prioritize pleasing their superiors over presenting honest evaluations, especially regarding unsuccessful policies.
• Envoys who report positively about policies may be promoted, while those who deliver bad news can face career setbacks.
3. Promotion and Success in Bureaucracy:
• Success in a bureaucracy is more about persuasion and telling leaders what they want to hear rather than effectively serving the public.
• This leads to a focus on creating a "yes-man" culture among higher ranks, where true information may be lost.
4. Government Growth:
• Contrary to the belief that government grows due to increased public demand for services, it is often the bureaucracy that generates the demand for itself.
• "Parkinson's Law" suggests that bureaucratic staff often expands regardless of the actual workload, as officials create unnecessary work for each other.
5. Bureaucratic Behavior:
• An official feeling overworked tends to solicit more subordinates to lower their own workload while increasing their importance.
• The expansion of bureaucracy is driven by the need for officials to maintain appearances of importance through excessive paperwork and meetings.
6. Historical Examples of Bureaucratic Growth:
• Examples from the British Navy and Colonial Office show how bureaucracy can increase even when the actual workload diminishes.
• Officials focus on managing larger teams rather than being efficient, often resulting in performance decline.
7. Barber's Observations:
• Observations during WWII revealed how bureaucrats often manipulate structures to seem busy while achieving little.
• A leader's decision to reduce staff dramatically showed that smaller teams can work more efficiently than larger, bureaucratic ones.
8. Public Choice Analysis:
• Barber's insights point to a tendency for government to grow because bureaucrats understand their own self-interests better than the citizens.
• The impact of government expansion on freedom and costs is less recognized by the public, allowing bureaucrats to pursue their goals effectively.
Bureaucracy tends to expand and become less efficient over time, driven by hierarchical structures and the self-interest of bureaucrats. This leads to a system where those who can best navigate internal politics and please their superiors often succeed, rather than those who can effectively meet public needs.
https://mises.org/mises-wire/why-bureaucracy-keeps-getting-bigger
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