Hence, for example, the phenomenon of President Nixon, thinking he knew more than anyone else about the Vietnam War and yet actually knowing less than the astute reader of the New York Times. For the CIA and other intelligence warnings of what was going on, developed by many of the lower officers, were screened out by the higher-ups, for being contrary to the President’s preferred line, i.e., that all was going well.2
Contrast the hilariously satirical, but all too perceptive account of “Parkinson’s Law” of bureaucracy. Thus, Professor Parkinson asserted that, in a government bureaucracy, “there need be little or no relationship between the work to be done and the size of the staff to which it may be assigned.”3 The continuing rise in the total of government employees “would be much the same whether the volume of the work were to increase, diminish, or even disappear.”4 Parkinson identifies two “axiomatic” underlying forces responsible for this growth: (1) “An official wants to multiply subordinates, not rivals”; and (2) “Officials make work for each other.”
Mises Wire • Murray N. Rothbard
[This article is adapted from “Bureaucracy and the Civil Service in the United States.”]
Bureaucracy is necessarily hierarchical, first because of the Iron Law of Oligarchy, and secondly because bureaucracy grows by adding more subordinate layers. Since, lacking a market, there is no genuine test of “merit” in government’s service to consumers, in a rule-bound bureaucracy seniority is often blithely adopted as a proxy for merit. Increasing seniority, then, leads to promotion to higher ranks, while expanding budgets take the form of multiplying the levels of ranks under you, and expanding your income and power. Bureaucratic growth occurs, then, by multiplying levels of bureaucracy.
The theory of hierarchical government bureaucracy is that information is collected in the lowest ranks of the organization, and that at each successive higher rank, the manager culls the most important information from his subordinates, separates the wheat from the chaff, and passes the culled information higher up, so that, in the end, the President, for example, dealing with intelligence operations, receives a two-page memo distilling the most important information gathered and culled from hundreds of thousands of intelligence agents. The President, then, knows more than anyone else, say, about foreign affairs. One problem with this rosy model, as Professor Gordon Tullock points out in his illuminating book, The Politics of Bureaucracy,1 is that the model doesn’t ask whether or not each bureaucrat has the incentive to pass the best distillate of truth on to his superiors. The problem is that bureaucratic favor, especially at the higher levels, depends on pleasing one’s superiors, and pleasing them largely rests on telling the President and the higher bureaucrats what they want to hear. One of the great truths of human history is that one tends to shoot, or at least react badly, to the bearer of bad news. “Sire, your policy is working badly in Croatia,” is not the sort of message that the President, say, wants to hear from his envoy, and, while the outcome in Croatia remains in doubt, the President and his aides want to continue to believe that their policy is doing well. Hence, the dissident is set down as a trouble-maker if not a subversive, and his career in the hierarchy is side-tracked, often permanently. In the meanwhile, the envoys or foreign service people who assure the President “things are going very well in Croatia,” are hailed as perceptive fellows and their careers are advanced. And then, if years later, the dissident is proved correct, and the Croatian policy lies in shambles, is the president or any other ruler likely to turn in warm gratitude to the former dissident? Not hardly. Instead, he will still remember the dissident as a troublemaker, and he will not blame his aides, who, along with himself, have been proved wrong. For after all, didn’t the great mainstream of experts make the same error? How common is sincere soul-searching and repentance for past errors among Presidents or other rulers?
Those bureaucrats who are shrewd analysts of human nature, then, and who understand the way rulers operate, will, if they see that the cherished policy of their President is in grave error, tend to keep their mouths shut, and let some other sucker be the messenger of bad news and get shot down.
Every human activity and institution will tend to reward those who are most able to adapt to the best route to success in that activity. Successful market entrepreneurs will be those who can best anticipate, and satisfy, consumer demands. Success in the bureaucracy on the contrary, will go to those who are most apt at (a) employing propaganda to persuade their superiors, the legislators, or the public about their great merits; and therefore (b) at understanding that the way to rise is to tell the President and the top bureaucrats what they want to hear. Hence, the higher the ranks of the bureaucracy, the more yes-men and time-servers there will tend to be. The President will often know less about what is going on than those in the lower ranks.
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