[ashconnor]

It's a valid point. I think that there are a few reasons why this occurs.

1. Tax payers aren't as resilient as shareholders:

2. There's a psychological tendency to think that "this is not my money" leading to excessive spending.

3. The accountability isn't there. If a politician wastes taxpayer money then he's still a politician for the time being.

But it's not always valid. Many government projects are carried out by private firms that aren't efficient. You just have to look at the NHS IT project here in the UK to see how £12 billion can be wasted by private firms.

[ImprovedSilence]

In private industry, you promoted and seen a valuable if you make money for the company. In the government, you are promoted and seen as a power player if you spend more money. There are lots of super-competitive A-types in govt work who will spend a million dollars just to get another feather in their programs hat.

[notJim]

This seems like you have an idealized vision of private industry. From what I've seen, politics and being friends with the right people is the determining factor in both fields.

[chernevik]

Private industry is ultimately disciplined by a marketplace. It can take a while, but managements seeking goals other than returns ultimately lead their companies into losses. The companies either improve or are bankrupted and their assets transferred to more capable managements.

U.S. auto companies are an edifying exception.

[kalleboo]

Wasteful empire-building and waste-what's-left-of-my-budget-so-I-don't-lose-it-next-quarter is so common in private businesses it's even a recurring joke in Dilbert http://dilbert.com/fast/2012-04-07/