Trouble Tax: We All Pay a Time Price for Bureaucratic Dysfunction

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Adam Smith said it all, in “Wealth of Nations”: “The real price of every thing, what every thing really costs to the man who wants to acquire it, is the toil and trouble of acquiring it.”

Now, we might interpret “toil” as the cost, or money price, of the thing, and “trouble” as the transaction cost, or inconvenience of the purchase. Then an increase in either the money price, or an increase in trouble, are both cost increases. Demand curves slope downward, so people are better off if the price, or the “trouble,” are reduced. They are substitutes, for citizens.

The problem is that these two costs are not seen as substitutes for bureaucracies, not at all. The result is that citizens are constantly paying substantial, and easily avoidable, “taxes” in the form of trouble, just so bureaucracies can save money.

It is easy to think of examples.

You are trying to enter the country, after a trip abroad. There are only two stations open at the passport control barrier, and hundreds of people in line. Now, the government could easily hire more passport agents, but that would cost money. Instead, a terrible “trouble tax” is imposed, as people have to wait in line for more than two hours just to have a bureaucrat spend 30 seconds looking at a passport and waving you through. (This happened to me in Charlotte this year: there were literally two agents working. We were told “there is a shortage,” as if that were an explanation for indifference to citizens’ needs). Other places, including Dulles Airport in Virginia, may even be worse! […]

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