A good piece by Glenn Reynolds at USA Today: Greedy Socialism.
The reality, of course, is that government employees, be they cabinet officials or low-level clerks, are motivated by the same kinds of desires that motivate people in other walks of life: money, security, power over others, creativity, status, ego-feeding and public adulation, in addition to the satisfactions of doing good work and providing value to others…with the individuals weights of these factors of course varying from person to person. The principal-agent problem does not disappear just because the agent works for the government.
I particularly like this passage from Glenn’s article:
The absence of a bottom line doesn’t reduce greed and self-dealing — it removes a constraint on greed and self-dealing. And when that happens, ordinary people pay the price. Keep that in mind, when people suggest that free-market systems are somehow morally inferior to socialism.