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Bureaucracy tends to be static and unchanging.
While free-market business is constantly adopting new ideas and technology, a bureaucracy by nature has less incentive to change.
Bureaus are usually government offices put in charge of regulating some aspect of human life. Since human life is always changing, the challenge is to keep the bureaucracy up-to-date.
For example in 1970 the government might need a bureau to track car safety. Let's say the bureau's job is to keep accident statistics.
In the mean time auto insurance companies have begun to track the same statistics so they can lower insurance claims. The insurance companies lobby congressmen to change the safety laws, and new auto safety reforms are passed.
At some point the government bureau for auto safety is obsolete, so bureau workers have to be fired or sent to different jobs, which means less power for the guy in charge of the bureau. Naturally, there is resistance among government workers for ending the bureau, yet the bureau is no longer needed because insurance companies are keeping the statistics.
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What is a major problem of the federal bureacracy?
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