What is Political/Government Failure?

Political/Government Failure is a mental model used for better thinking and decision-making.

How do you apply Political/Government Failure?

To apply Political/Government Failure, identify situations where this framework is relevant, then use it as a lens to evaluate your options and decisions. The model is most useful when combined with other complementary mental models.

What category does Political/Government Failure fall under?

Political/Government Failure falls under the Philosophy, Law & Politics category of mental models. Other models in this category can be found on the Philosophy, Law & Politics hub page.

Why is Political/Government Failure important?

Political/Government Failure is important because it provides a structured way to think about problems that would otherwise be approached with intuition alone. Understanding this model helps you avoid common reasoning errors and make better decisions.

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Mental models
Political/Government Failure

Philosophy, Law & Politics

Political/Government Failure

Model #0868Category: Philosophy, Law & PoliticsDepth to apply:

5 min read

On this page

Core Idea
How to See It
How to Use It
Founders & Leaders
Connected Models
One Key Quote
Summary & Further Reading

Contents

1. Core Idea
2. How to See It
3. How to Use It
4. Founders & Leaders
5. Connected Models
6. One Key Quote
7. Summary & Further Reading

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·Philosophy, Law & Politics

Section 1

Core Idea

Political or government failure occurs when government intervention in markets or society produces outcomes worse than the problem it was meant to solve. Just as markets can fail through externalities, information asymmetry, and monopoly power, governments fail through regulatory capture, bureaucratic incentives, information deficits, and the difficulty of undoing policies once enacted. The insight from public choice economics is that politicians and bureaucrats are self-interested actors — not benevolent planners — and the systems they operate within produce predictable distortions. Government failure doesn't mean government is unnecessary; it means government intervention has costs and failure modes that must be weighed against the market failures it seeks to correct. The cure can be worse than the disease, and often is when incentives are misaligned.