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Exceptionally smart and driven people generally - they'll move into doing more productive things than dealing with the government. Also, thinking that creating new bureaucracy creates new value through accounting/legal probably is an example of the Broken Window Fallacy:

http://en.wikipedia.org/wiki/Parable_of_the_broken_window

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Some of the smartest people I know work, or have worked, for NASA. Some of the most cutting edge work is done in aeronautics for military aircraft. The Manhattan Project had its share of exceptionally smart people.

I think you're confusing exceptionally smart with exceptional business skills.

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