Sheldon Richman reflects on Ludwig von Mises' 1944 book 'Bureaucracy,' a short but essential work describing the nature of decision-making within government departments, offices and ministries, and how it differs from market processes in a free economy.

"By nature a bureaucracy faces no profit-and-loss test. It has money expenses in a market-oriented society: it hires willing workers and buys equipment and supplies from willing vendors. However, it does not offer its output to potential consumers, that is, people who are free to say no and take their money elsewhere.

Instead of consumers, a bureaucracy has taxpayers, who must pay whether they want the output or not. This disconnect must have far-ranging consequences. (Government services for which user fees are charged differ in this respect, but the government typically forbids competition.)"