Third, government is inherently monopolistic, large, and unwieldy; these features breed bureaucracy. Admittedly some corporations rival state governments in size. Yet even among the largest companies, the profit motive breeds a natural concern for trimming waste, cutting costs, and streamlining operations. Even virtual monopolies strive to remain lean and nimble in order to maintain a distance from upstart competitors. When government pays lip service to efficiency, shrewd listeners recognize this as political rhetoric designed only to pander to the electorate.
In the final analysis, financial incentives, accountability, and competition all distinguish private business from government, both in terms of their likelihood of establishing large bureaucracies and in terms of the damage that these bureaucracies can inflict on the organization.
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