Bureaucracy: The Red Tape that Prevents Economic Growth

Source: Ludwig von Mises Institute
by Sergio Lopez

“The constant increase of government and bureaucracy size has been a sad and terrible tendency in the entire world since the 1930s, and bureaucratic procedures represent a high burden of time, effort, and money for potential businesses. Data from the US Bureau of Labor Statistics shows that around 20 percent of new businesses fail during the first year, and 45 percent fail during the first five years (in the United States). And if those are the numbers of new business success in a huge and comparatively prosperous economy, we can only imagine the difficulty of becoming an entrepreneur in nations that are plagued with constant economic crises and giant bureaucracies.” (06/10/24)