Government Failure

Definition of Government Failure:  This occurs when govt intervention to overcome market failure fails. Also govt intervention may make things worse. This can occur for the following reasons:

Reasons for Government Failure

• Poor Information, politicians may have poor information about the type of service to provide.
• Political interference e.g. politicians may take the short term view rather than considering long term effects
• Admin cost of govt bureaucracy in running public services
• Lack Of incentives: There is no profit motive working in the public sector this can lead to inefficiency .For example there could be over-staffing
• Pursuit of votes versus pursuit of Constitutional Intents
• Advocating a party's agenda versus The People's Needs
• Scarification of the good of a nation for liberal or conservative views 
• Lifetime Politicians vs Term Limit Politicians 
• Not upholding their oath-of-office
• Restricting the pursuit of Life, Liberty, and Happiness

However (evaluation) public services are not subject to the same profit goals. It is difficult to give a profit motive in health or education.

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