POL S 204 Lecture Bureaucracy modern politics bureaucracy comparable to firm higherarchy goods services for gov not for profit not market not demand driven decision binding upon all are enforceable in court DMV DOL example what are its resources power technical expertise specialized knowledge delegated authority discretion over policy implementation working their own agenda cid 127 many complicated technical issues experts are hired to implement changes what makes bureaucracies uniquely modern equal treatment origination cid 127 monarchs conquest and war via taxes bureaucracy modern invention they are better at war and instilling culture legislative authority fused with bureaucracy jacks of all trades merchants legislature plus bureaucrats Professional bureaucracy record office tax office educate so that the gov can tax you centralization standardization currency clear property rights people work harder cid 127 more liquid predictable real estate market establishment of financial system collateral evolutionary struggle all comes back to taxes property rights education rational leagl system corruption laziness cid 127 Modern Bureaucracies have bad reputations regulation over regulation misleading self serving cid 127 Where does bureaucracy come from politicians create it usually a response to demands of people in power what do they solve educated professional salaried workforce of tax assessors that was both literate numerator cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 organization by the fed gov to carry out programs usually use experts or wage workers do not have the time or expertise they craft legislation that creates general policymaking framework delegate implementation of policy to experts cid 127 Why not hire experts on a case by case basis to lock in power influence into the future politicians power influence may wane over time bureaucracy will go on long after the politician is gone The solution admin be separated from the politics one hand create a system that is not functional costly resistant other hand support career civi service promotion pay political intervention Bureaucracy special interest groups corrupt bureaucracies Quiz section Notes state capacity high capacity taxes can they do what they want to do cid 127 What is a bureaucracy higherarchy people elected politicians looking to protect their own interests cid 127 Why are they needed legislators don t have the expertise to flesh out every detail of legislation the agent has different preferences than the principal obamacare reduce transaction cost Institutions govern behavior people have preferences incentives States want power who is running the state Comparison firm bureacracy firm is a hierarchical structure company just a specific type of firm that hopes to make a profit firms want to be more efficient reduce transaction cost Coca Cola example cid 127 Moe argues to reduce transaction cost through consolidation incentives monitoring why would a firm break up fall apart corruption lack of funds DMV Cops example corruption cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 Agents on the individual level have decisions preference preferences can be changed and influences cid 127 cid 127