I find a persistent myth among many of those who consider themselves well informed about economics. Specifically, many believe that governmental agencies are by their nature inefficient, unresponsive, officious, and insensitive to citizens’ legitimate demands and expectations.

The U.S. Postal Service and state driver’s license bureaus are standard examples. This criticism is silly and often wrong. More sophisticated observers know better. They understand that behavior in these agencies depends on the incentives faced by those behind the counter, especially the culture they share.

There are huge variations among the various offices around the country. In my 40 years experience here, and I’m sure this would hold true in similar towns, the generalization of bad bureaucracies is wrong. First consider the USPS. It works well indeed, even while losing billions. The loss is due to the constraints and the rigidness it faces while operating in the communication sector, surely one of America’s most dynamic and competitive.

The USPS is extremely reliable, so reliable that Tiffany and Company of New York ships diamonds by first class mail as do most other jewelers. The reasons are simple; this shipping is inexpensive and dependable. Why so?

Established in 1775 by Ben Franklin, the Post Office has had much practice at delivering mail and packages. Although nominally an independent agency, the USPS is fundamentally dependent on the federal government. Every voter in each congressional district depends on the post office. What happens when a citizen fails to receive her SS check or IRS refund? The question answers itself.

But why are postal employees so helpful, especially here? This is mainly a matter of cultural expectations, neighborliness in brief. The same conditions explain why people in our driver’s license bureau, and even our real estate tax office, are pleasant and accommodating. These qualities are among the large, and largely assumed, benefits of living in towns like ours.

These contributions to quality of life will become increasingly important as the welfare state implodes and lives in large cities become ever more strained and conflicts grow among groups contending for governmental largesse. As the decade ends the dominant sounds in large metro areas are consequences of political promises crashing down.

Essentially, in the decades following WWII politicians bought votes with promised transfers to friends. Most of those who will suffer these bills are not yet born. This transfer of liability is an unsustainable post-Keynesian, development. It can’t go on indefinitely. And as the welfare state unwinds, politics become ever more nasty and wellbeing generally declines.

As this occurs, individuals, some wealthy, others of modest means, will relocate to Bozeman and other small cities blessed with our qualities. These exemplify what Joel Kotkin of Chapman University calls the “Efficient City.” Increased local, state, and federal taxes elsewhere will provide just one more incentive to move there. Even civil servants in such places show civility to taxpayers.

Places that maintain a sense of community and practice of caring for others will be sought out. Towns and small cities having the amenities of large cities, good health care, air service, opportunities to experience the arts, and a college or university, are especially attractive.

Refugees from the debilitating dysfunctions of urban congestion, social conflict, high taxes and overhead will find these places. In a sense, such towns and small cities are reservoirs holding remnants of vanishing American culture and civility. Further, even desperate and creative politicians have trouble taxing these qualities. This is important, for as political promises prove unsustainable, taxpayer plunder escalates.

People who live here often wonder why such governmental agencies as the post office, driver’s license bureau, and the state department of revenue are elsewhere so harshly criticized and condemned. Here, those who serve us are normally pleasant, helpful, and competent. It’s not unusual to find their offices decorated with poinsettias given by grateful citizens celebrating the Christmas season.