For the bulk of the population of earlier periods of
history, bare survival was the critical problem, and it left only minimal
resources for investment in education and productive capacity. Only the
productive surpluses that innovation began to make possible, first in
agriculture and mining and then in manufacturing, made feasible the enormous
increases in investment in inanimate and in human capital that are widely
judged to have contributed greatly to economic growth.
William Baumol’s 2002 volume
Following the principle, “The best guide to a maze is its
architect,” legislators have an incentive to create a bureaucratic maze so that
voters reject challengers and rely on incumbents as guides. Thus,
incumbent politicians sometimes seek an electoral advantage by increasing the
complexity of administration faced by citizens and retaining control over it.
For politicians, the red tape that ensnarls citizens is a
feature, not a bug, of government
Robert Cooter’s 2000 book