Wednesday, June 10, 2009

Neocons favorite example of government innefiency debunked.

Considering the complexities that one encounters when evaluating why a McDonalds runs so efficiently and a DMV is so dysfunctional, one must realize that there are severe constraints limiting one agency and very little constraints impeding on the other.
The DMV faces three main constraints when dealing with clients. First, it cannot use the earnings of the organization for employee compensation, for improvements, or for other needs of the organization. The monies collected are subject to a higher authority. Secondly, the factors of production cannot be allocated in accordance with the needs and preferences of the organizations administrators. The labor, budget, and means to accomplish the jobs are funded and tasked by a third party. Thirdly, the organization is serving goals not of its own choosing. The organizations charter and mission is set by the state government and elected officials with budgeting power, not by its own choosing and is not open for negotiation.

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