Thoughts on economics and liberty

Government failure contd. #5

Continuing my series on government failure, in order to STRONGLY OPPOSE economists who insist on government interventions at the slightest sign of so-called 'market failure'. Clearly these economists (including those who advise governments) have little understanding of the operational management capabilities (or lack thereof) of governments.

My "lists" of government failures are likely to touch only the tip of the huge iceberg of government incompetence and corruption, but the salutary lesson of these lists is this: that governments must not take up tasks that the private citizens can do themselves. DO NOT TRY TO OUT-SMART THE MARKET. Regulate the market, by all means, but don't DO things yourself, as a government. 


CWG contractor paid twice for same job: CAG probe (The Times of India, 17 October 2010) 

In a clear case of nexus between government agencies and contractors engaged for Games-related projects, a preliminary probe by CAG has established that the Central Public Works Department (CPWD) paid a contractor twice for the same job at Talkatora swimming pool complex. 


Not only in India, even in an otherwise outstanding public service system, government failure is chronic.

Batts scheme report slams mismanagement by public servants (The Australian, 15 October 2010).

As a result of the bungling, the Auditor-General's report says the Public Service's reputation for effective service delivery has been damaged.

Today's report finds the focus on stimulus overrode safety concerns. Some 1.1 million roofs were insulated at a cost of $1.45 billion, but many were found to be deficient.

The axed stimulus scheme has been linked to four deaths and a score of house fires and today's Audit Office report says a “range of safety concerns” remain.


Just because Australia has a better public service system it does NOT mean that it can do better than the private sector in virtually anything.

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2 thoughts on “Government failure contd. #5
  1. dhiman jai gopal

    Corrupt politicians are not rolling down the rights of the people  but also defaming the country name,such people can never be country loving and there aims be collecting money as per shri madbhagwat gita such person are mule.So country loving people should come forward to boycott such corrupt ones.

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