Do understand how the Cronyism Economic System works? The bureaucracy is the handmaiden of the Cronyism Economic System. Bureaucracy's purpose is to enrich the successful politicians and their cronies all at ourexpense.
IMHO, bureaucracy is just a tool, to be used for either good or bad ends. Having said that, I think you've hit the nail on the head, tobywil (assuming you are referring to the federal government). The sad thing about it is that, as obvious as what you say might be, we, the American people, continue to put the same old politicians into office. In "our" (tinw -- http://forum.spamcop.net/scwik/tinw) defense, sometimes even the most ardent defenders of freedom turn out to be the "same old" politicians when they get into office or are soon defeated (Rep Alan West, R-FL) or leave for better jobs (Sen Jim DeMint R-GA).
This is why I get tired of Constitutional conservationists using the term "capitalism" in place of Free Enterprise. There is a distinct difference in the context pointed out in the term "crony capitalism." This is the price we pay for electing "politicians" instead of "Statesmen."
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"Government is not the answer to the problem, government is the problem." - Ronald Reagan