Government's bad incentives

When a part of the government dramatically fails it is usually awarded with more money and power (eg: intelligence agencies after the failure to stop 9/11). There may be some scapegoating at the top, but there are no real mechanisms for wholesale change as there are when a business fails in the free market. This lack of skin in the game implies that there are less incentives for government agencies to succeed and, over time, ineffective agencies will tend to make up a larger share of the government.

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