The Politician Principle
The Peter Principle states that people are promoted to the limit of their inability and there they stay. The problem is that there are a group of people, who once they are unable to do their job, shift their energies from doing their actual job to networking. This is the act of playing internal politics.
The networking efforts of these politicians allows them to move up the chain of command even though they are not able to do the jobs that they are meant to do. These people often use those around them to do the work. This approach has two advantages. If the people around them do the job well, the politician takes credit. If the people fail, it is all their own fault. The politician then gains kudos by punishing their underlings for doing a bad job. The process works because praise moves upwards within an organisation and blame moves downwards.
Because the process works so well, incapable politicians fill many of the senior positions within government and industry. It is this understanding that explains how government and industry can do such clearly stupid things.