- They are organized to carry out most common tasks according to regular processes. Its advantage is efficiency. The disadvantage of it is that they can't operate outside of the rules. If you ask them to do something else, they couldn't do it.
James Q. Wilson and his view on public and private bureaucracies
The government is very different from private agencies. He compared Mcdonalds and the DMV. Government agencies are big spenders. They have too much red tape, and they hire way too many people. There is a retention from benefits to earnings, and control over the factors of production is different You can't run gov. agencies like a business..
Jonathan Hacker: Government better than a business?
He thought that social insurance was a clear example of where the public sector does btetter than the private sector could. -Private income is not adequate to cover social needs. - Provate market for social isnuracne is also not transparent, leading to adverse selection and moral hazard.
How does Jonathan Hacker say Public insurance solves moral hazard and adverse selection problems?
Compulsive power: spreads risks widely, lowers costs. - Size of the program gives government negotiating leverage (Medicaid). - Equity - Quality control/improvement
What questions does the growth of bureaucracy raise?
accountability, political responsiveness, Congress and the president battle for control.
Ideally, we want a bureaucracy that is:
Neutral (no explicit political role of its own) - Competent (effective in carrying out assigned tasks) - Responsive (remains accountable to public and political changes).