The Problem With Government Solutions

Government solutions aren’t always appropriate. Nothing can happen in government unless it is authorized by law. That means that government always uses a one-sized fits all solution. That is not good if the situation is likely to be diverse. The emphasis on rules also tends to mean greater complexity and that often means being too clever by half. Government is also very rigid and difficult to change. Government is bureaucratic, which means that it is slow to react and not very nimble. These things are fine if you are looking for continuity, but it is bad if the target environment is dynamic. Government is also subject to politics which means that sometimes things aren’t decided on the merits. Government programs sometimes go on even though they are not useful because their existence is not based on market demand or cost-effectiveness. I think government and law are useful for some situations, but we should never believe that they are useful in all situations. Knowing the difference is the essence of good self-governance in a democracy.

Lloyd Lim regulates health insurance in the State of Hawaii as the Health Branch Administrator of the Hawaii Insurance Division within the Department of Commerce and Consumer Affairs. He has a B.A. from Columbia University, a J.D. from UCLA, and an M.B.A. from the University of Hawaii. He also holds the Chartered Property and Casualty Underwriter designation.

The Grassroot Institute continues to seek out voices and views of its many diverse members. Opinions expressed here are Mr. Lim’s own and should not be interpreted as the opinions of his employer or the Grassroot Institute of Hawaii.