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Stiglitz criticizes this reason by writing about how this doesn`t work in public sector. Another reason the critics give are government is rife with inefficiency. Then he goes to critic the way everything is done in the white house. He writes about how government lacks empirical evidence and theoretical analysis at many times, and not only do bad arguments drive out good arguments, but good economists adopt bad arguments for the incentive.
Then, Stiglitz explains the two successful pareto improvement which the government was able to achieve while he was in White House. One was the pension reform, where government made a model to show companies to follow where the maintenance of pension will not be as high as it was before and will work efficiently...
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