By Ludwig Von Mises
Professor von Mises addressed himself to a selected factor: what's the crucial distinction among bureaucratic administration through executive and marketplace administration in a procedure in line with inner most possession of the technique of creation? Mises doesn't talk about bureaus or bureaucrats, yet inexorable rules of human motion. He doesn't condemn paperwork, that is the perfect strategy for the behavior of presidency businesses resembling courts of legislation, police departments, and the inner profit carrier; although, in monetary construction and distribution, the bureaucratic approach is proven to be an abomination that spells common damage and catastrophe.
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There is no need to limit the discretion of subordinates by any rules or regulations other than that underlying all business activities, namely, to render their operations profitable. The objectives of public administration cannot be measured in money terms and cannot be checked by accountancy methods. I. There is no yardstick available that could establish whether the expenses incurred by one of its regional or local branches were not excessive. The expenditures of a police station are not reimbursed by its successful management and do not vary in proportion to the success attained.
They bother neither about the vested interests of capitalists nor about the fate of the workers who lose their jobs if as consumers they no longer buy what they used to buy. What does it mean when we say that the production of a certain commodity A does not pay? It is indicative of the fact that the consumers are not willing to pay the producers of A enough to cover the prices of the required factors of production, while at the same time other producers will find their incomes exceeding their costs of production.
They are no longer eager to deal with each case to the best of their abilities; they are no longer anxious to find the most appropriate solution for every problem. Their main concern is to comply with the rules and regulations, no matter whether they are reasonable or contrary to what was intended. The first virtue of an administrator is to abide by the codes and decrees. He becomes a bureaucrat. 2. BUREAUCRACY WITHIN A DEMOCRACY The same thing is essentially valid for democratic government. It is frequently asserted that bureaucratic management is incompatible with democratic government and institutions.