Gammon's Law

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Gammon's Law, or the "Theory of Bureaucratic Displacement" as Milton Friedman put it, is that in "a bureaucratic system ... increase in expenditure will be matched by fall in production ...," in the words of Dr Max Gammon. Dr. Gammon came to this conclusion based on his review of the British National Health Service.

Gammon's Law predicts that bureaucracies will become like "black holes" that absorb scarce resources while producing less and less.

Milton Friedman, who promoted the insight of Gammon's Law, observed how well it describes the American public school system: "Input, however measured, has been going up for decades, and output, whether measured by number of students, number of schools, or even more clearly, quality, has been going down."[1]

See also

References

  1. http://wiki.mises.org/wiki/Gammon's_Law
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