[simianwords]

Companies are incentivised to keep costs low and the feedback loop for this incentive is much smaller. What I mean by feedback loop is: the cost of running the company directly affects the stake-holders in a meaningful way. The CEO is probably has stock options and has to hit a target so that they can be paid well. To do so they need to be more sensitive with prices or shareholders or the board will be on the CEO’s behind. There is a direct monetary incentive relation here.

There is one for the government too but the feedback loop is much bigger. If some one in the government makes a suboptimal decision, what incentives exist to penalise them?