Indeed, privatization of public utilities for example have created more government bureaucracy, not less, exactly for these reasons. Market fundamentalists (the

Indeed, privatization of public utilities for example have created more government bureaucracy, not less, exactly for these reasons. Market fundamentalists (the anarchist leaning side at least, less the Hayekians and such) seem to believe that institutional structures that emerge from non-coerced (if it were ever black and white) property owning individuals will carry their values in some immutable form and corruption only ever arises when agents "become social". I find this an extremely naive view of human group behavior. The entire underlaying theory seems to be based upon 19th century hard-reductionism (sadly still the norm in the economics profession) and really needs a post-complexity, post-behavorial update. As it stands it is firmly entrenced in the realm of ideology, I wouldn't even consider it soft science.