file under "other" reasons. To be sure, the governments don't want to keep getting sued so they start putting in policies to mitigate damage, but it is a source of inefficiency. It's also too easy for state and locals to float bonds and go into debt to cover these things, push the payoff problem to a future generation of voters/future generation of immigrants into the city. If there were a real hammer up against their heads (say, if municipal bonds and state bonds were outlawed), the efficiency would go up.

Getting sued is just seen as a cost of business for the government. Having sued and won against the government I have seen that 99% of the time they do not change policy to avoid getting sued again. I'm currently suing the government for violating the Constitution in a case they already lost a couple of years ago and didn't fix the problem and just kept committing the violations.

You're right most of the time. But eventually some things change. I never said it was efficient as it is.