Thursday, July 5, 2012

Red tape? What red tape?

Good morning everyone! Today, we will talk about something that we have all experienced. The joy of standing in line for ages in a government run ministry or department. Recall the last time you visited the social security office. Yes, that will do!

Of course each one of us has an opinion of how government departments must be run in order to become more efficient, but have you wondered why they are in the state they are in right now?

There is one major problem in government run departments, red tape. Red tape is another word for bureaucracy. The sequence of forms required to gain approval for something. This is entirely dependent on the structure of the government and the way it is organized. Although rules and regulations and in fact bureaucracy are important for a government to function, having too much of any of these presents a problem. This is the cause for delays and a general sense of discomfort for the people that require government assistance.

In times of recession, when money is limited, it is in the best interest of the government to increase the red tape in departments with money outflows and decrease the red tape in departments with money inflows. In other words, the government can receive money faster than the rate it spends. So do not be surprised if all of a sudden there are new forms to fill in and new timely procedures to follow in order to apply for government assistance.

And by the same token, it is no surprise why you can submit your income tax forms online and make an immediate payment without the hustle of too much paperwork.

So the next time you are standing in line wondering why you have to fill in tens of forms to claim government assistance, is that way on purpose.

Have a nice day!


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