Elon Musk: Inefficiency in the DMV

Feedback Loops in Government Services
One way to think of economy is just in terms of feedback loops. The feedback loop for government-provided services to be excellent is weak because if, like if you have a government monopoly or anything, you as a consumer have no alternatives. Think of the Department of Motor Vehicles like the DMV. It’s very inefficient. You wouldn’t want the DMV to make cars.

Challenges with Government Monopolies
And if you don’t get good service from the government, what do you do? Who do you complain to? Competition breeds excellence because two organizations or more organizations are fighting to make the end consumer happy. One will gain market share if they do a better job than the other.

The Case for Limited Government Involvement
So, that’s why we really want government to do the least because it’s just got the broken feedback loop for improvement.

Check out the YouTube video details by clicking here!