The debate around the role of the state and its impact on citizens’ lives usually centers on economic burdens, taxes, and budget allocation. However, the costs of an unrestrained government extend far beyond finances. This type of governance leads to losses of resources, time, energy, and, most importantly, opportunities that affect individuals’ quality of life and their personal and economic development. These aspects may be less visible but are equally, if not more, severe. Below, we examine some of the ways in which an inefficient or excessive state negatively impacts society.
Resource allocation to unproductive policies
Beyond the discussion of public spending, the core issue lies in the inefficient allocation of resources toward policies that bring little real value to society. Governments frequently allocate funds to projects or programs with minimal productive impact, which do not contribute to improving citizens’ quality of life. These policies are not only a waste of public money but also create negative externalities by diverting resources from areas that could generate genuine benefits, such as education, healthcare, or basic infrastructure development.
For example, when public funds are directed toward monumental projects or campaigns without social impact, the opportunity to use that same capital to create jobs, enhance social welfare, or invest in technological innovation is lost. This leads to a high opportunity cost, as areas with growth potential are sidelined to prioritize decisions that often serve political interests or specific sectors, with little benefit to society as a whole.
Wasted time on unnecessary bureaucracy
One of the most valuable assets that citizens lose to the state is time. Bureaucracy is one of the most frustrating obstacles, especially when administrative processes multiply without a clear purpose. Despite technological advances that could automate and streamline these processes, many governments still impose lengthy and repetitive procedures that not only complicate citizens’ daily lives but also justify their existence without improving service.
Countries like Denmark and Estonia have implemented digital administration models that significantly simplify processes. In Estonia, for example, citizens can conduct nearly all transactions online, from paying taxes to requesting official documents. However, in many other countries, the time required for bureaucratic procedures continues to grow, robbing citizens of valuable hours they could devote to family, work, or personal development.
Focus on secondary policies and neglect of priorities
Another troubling aspect is the prioritization of policies with limited impact over others that are essential for societal well-being. It’s common for governments to dedicate time and resources to symbolic policies or those aimed at gaining media attention, sidelining core areas such as employment, wealth generation, and economic stability. This distracted focus not only misallocates resources but also postpones solutions to structural issues that, if addressed properly, could greatly improve citizens’ quality of life.
Focusing on secondary issues rather than on creating stable jobs or promoting investment is not only poor resource management but also limits opportunities for society to progress and develop. This lack of prioritization is a disservice to both current and future generations.
Opportunities for progress lost to corruption and favoritism
An unrestrained state often fosters elites and sub-elites who benefit from the system through corruption and favoritism. This structure excludes qualified, competent individuals with a genuine interest in the common good, favoring instead individuals or groups aligned with certain political interests. This type of cronyism not only creates injustices in public service but also limits opportunities for fresh talent to access influential positions and make positive societal impacts.
In many countries, public sector recruitment processes still follow questionable criteria that prioritize connections over capabilities, increasing citizens’ sense of abandonment and frustration. While capable individuals struggle to access the job market, those with political ties secure positions in the public sector, leading to a significant loss of talent and missed opportunities for societal advancement.
Barriers to innovation and entrepreneurship
For those who wish to start businesses and contribute to economic growth, bureaucratic obstacles are often among the biggest hurdles. In many countries, the sheer number of regulations, licenses, and permits needed to start a business is excessive, limiting the creation of new companies and jobs. These obstacles not only hinder economic growth but also prevent society from benefiting from new products and services that could enhance their quality of life.
Some countries have successfully streamlined these processes with “one-stop shop” policies or simplified procedures for startups. However, in many other places, entry barriers for new businesses remain high, harming competitiveness and limiting the economy’s innovative potential. The persistence of bureaucratic obstacles also reveals resistance to change and modernization within public administration, which ultimately impacts society negatively.
Redundancy and inefficiency in public services
In countries with decentralized administrative structures, such as Spain, there is often a duplication of services across various levels of government. This duplication generates unnecessary expenses by maintaining redundant services and departments that could be unified or managed more efficiently. Regional governments frequently replicate central government functions, which not only creates inefficiencies but also increases administrative costs without enhancing the quality of service offered to citizens.
This fragmented organization results in wasted resources and time, both for the state and for citizens, who must navigate different regulations and procedures depending on the level of government with which they’re dealing. This lack of coherence not only leads to confusion but also heightens the bureaucratic burden and reduces administrative effectiveness.
The responsibility of a state that takes more than just money
An inefficient state not only increases the tax burden on its citizens but also takes their time, opportunities, energy, and potential for personal and collective development. Every minute lost in unnecessary procedures, every dollar directed toward unproductive policies, and every job opportunity sacrificed to cronyism represent significant losses for society. The pressing question is: Who bears responsibility for these damages?
Citizens cannot change the system overnight, but they can demand greater transparency, efficiency, and focus on real priorities. Recognizing these invisible “thefts” and working toward a system where the state acts as a facilitator, rather than an obstacle, to social and economic progress, is essential. If change is not demanded now, these inefficiencies and abuses are likely to continue, depriving us all of much more than just money.
