Wednesday, January 12, 2011

Politics is a poor process for resolving issues

In his book Government Failure and Over Government Arthur Seldon points out that:

"confrontations" in the market are small, and solved by higgling and haggling over price, the peace-maker. In a state economy or state industries, decisions are centralized to planning boards, committees, commissions, councils, government departments, that nominally "represent" the very much larger number of workers, managers, and consumers who will benefit or suffer. Change is therefore more likely to be opposed, repressed, inhibited, postponed. When it takes place it is contrived, jerky, discontinuous, lumpy, convulsive. Disturbance, dislocation, disruption are large-scale. Friction is inflated.

He goes on to point out that representative government can be distorted by lobbying of special interests. This may be an unavoidable cost when the government is producing public goods, but it's inefficient and unfair when the government is providing private goods (heath care, food, housing) through overreach.

The book is reviewed at Aguanomics – a great economics blog. The review alone has pithy points worth reading.



  1. Wonderful explanation. This is fact. Most of issues are not immediately solved in politics.

  2. Hey.. I agree with your article. Yes Politics is a poor process for resolving issues, Now a days corruption is big issue of every country. and Politics are every where in every items.