Comment by robertlagrant
5 hours ago
> you simply stated but haven't explained why bloat is inevitable in the government except to say there is no market pressure applied in government. Whereas the parent is literally talking about employing people using market rates, an example based on market pressure.
The market pressure I'm referring to isn't on salaries, it's on departments. If a department gets the same budget next year because it managed to spend it all this year - a universal truth in UK public sector then departments only ever grow.
Don't companies also always grow?
No, many of them fold, and even those that don't close departments and make redundancies. Companies can only grow if they're serving their customers with value, or if someone believes that they will do in future and puts money in for a bit to get them started.
If they get things wrong by overspending or overinvesting in the wrong thing, they don't have a wellspring of tax money to keep drawing from. They have to offer enough value to not only supply the good and make a profit, but also pay taxes on that profit.