Institutions end up perpetuating the problems they aim to resolve, either intentionally or unintentionally. For example, TurboTax addresses the issue that taxes are too complicated for individuals to handle independently and then lobbies Congress to hinder efforts to simplify tax preparation for individuals.
This same dynamic occurs within larger organizations as well. Teams devoted to solving a problem may resist a superior solution that emerges, fearing that their role will become unnecessary.
See also:
- We often see status quo preserving behavior because change is painful
- Is this another kind of tragedy of the commons?
- US workers are increasingly working for larger enterprise companies
- Managerial capitalism makes startups possible
- Peter Principle
- Baumol’s cost disease