Software Failure As The Boundary on Bureaucratic Growth

This article argues that bureaucracy and regulations will expand to the level that automation enables:

We know this because in 2007 the tax office's internal budget was AU 11.4 billion, or 1.23% of GDP. In 1955 it performed essentially the same task without automation for A (pound) 66.7 million which was 1.33% of the 1955 GDP.

In the same time the number of pages of legislation to do with taxes rose from 1,300 pages to 15,000 pages. The added complexity of the tax code was consumed by increased automation in the tax office which is reflected in its budget. It seems to me this could be broken down by its IT budget and I would not be surprised if there is still an analogy there. The article continues:

We now see why it is so critical to society that software projects fail. The boundless creativity of politicians and bureaucrats to develop new and more complex regulation is bounded only by the bureaucracy's inability to implement them. The absolute size of the bureaucracy is constrained by external factors, so the only effect of automation can be to increase bureaucratic complexity.

It would simply not have been feasible to implement the Superannuation Co-Contribution scheme in 1955, but automation had made it possible in 2001. Fortunately for society most tax office software projects have also failed, so the act and regulations have been limited to 15,698 pages. But imagine if all the projects had succeeded? We might need to deal with well over 150,000 pages of regulations, and society would be in danger of collapsing under their weight.

It has been known that the pages of federal legislation have been increasing each year. However, looking at those graphs it expanded rapidly in the 1970s, but this was at the same time as Whitlam started expanding the scope of the federal government. Additionally the vertical tax imbalance was firmly established with WWII and the federal government had by this time become the main and dominant source of taxation.
Permalink, Software Failure As The Boundary on Bureaucratic Growth, Nov 2009, cam

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