THRUST FOR FREEDOM - No. 9

What is
BUREAUCRACY?

Most people are cognizant of the inefficiency of a BUREAUCRACY, but are likely to shrug it off with the remark that this is a “necessary evil” one must tolerate whenever an organization becomes large and unwieldy. Another important characteristic of BUREAUCRACY is the rigid, formal codification of all procedures, which results in total opposition to creative, imaginative (hence, progressive*⁽⁵⁾) ideas.

Although it is not generally so recognized, BUREAUCRACY is a crystallization of political Conservatism.*⁽⁶⁾ In other words, the adherence to established procedures of the past (when implemented by coercion) and the opposition to change lead to what is called BUREAUCRATIC management.

However, there is a broader and deeper characteristic of BUREAUCRACY which is observable and which will lead to an operational definition. This characteristic is the non-profit nature of BUREAUCRACY.† Not only is a BUREAUCRATIC organization non-profit in terms of secondary profit, but it is also non-profit in terms of primary profit.*⁽⁸⁾

The increase of happiness sought by those who participate in BUREAUCRATIC organizations cannot be called moral because they resort to coercion in their BUREAUCRATIC endeavors. This does not mean that everyone who works for a BUREAUCRACY is a coercer. It means that those who set the rules which others must follow rely on other-than-voluntary methods to convince the populace that these rules are in the “public interest". These methods are allied to a military chain-of-command operation rather than to market concepts of mutual gain.

The inefficiency which is characteristic of BUREAUCRACY is traceable to the non-profit nature of its operation. Innovation cannot take place because it is unrecognized, rejected, and, if necessary, coercively eliminated. Moreover, the rules set forth by the bureau chiefs (or commissars) lead to so-called "services" which are not sold to a public which can voluntarily purchase or refuse to purchase these “services.” These "services" are actually foisted on the public at prices which are not subject to voluntary acceptance. If a BUREAUCRACY claims its services are necessary and that it is acting in the public interest, it can best demonstrate its sincerity by letting the individual decide whether or not he wants the services and, if so, at what price.

If a BUREAUCRACY permits such freedom of choice, then it ceases to be a BUREAUCRACY. Its characteristic inefficiency will be remedied. Its opposition to creativity cannot be maintained. Only through creative ideas can services become merchandised in the competitive atmosphere of non-coercion.

In short, if a BUREAUCRACY embraces voluntarism, it ceases to be a BUREAUCRACY and becomes a profit-seeking business. From the foregoing, an operational definition of BUREAUCRACY easily can be formulated:

A BUREAUCRACY IS ANY LEGAL ORGANIZATION THAT CONTROLS THE PROPERTY OF INDIVIDUALS WITHOUT THEIR CONSENT.

It should be noted that, in most instances, BUREAUCRACIES surround themselves with an aura of legality - the artificial means of asserting morality.

† The clarification between bureaucratic management and profit management is exquisitely illustrated in BUREAUCRACY, by Ludwig von Mises.

* see THRUST FOR FREEDOM issue number indicated in parenthesis.