The problem with MBAs is that they rightfully recognize that most people can’t identify if a mechanic is honest or not, so they make recommendations that assume nobody is 100% honest — which is true, but elides all of the value of hiring honest people.
The dishonest mechanic is incentivized to make you think they are honest. The honest mechanic appears honest. Knights and knaves problem.
The problem with government institutions in the USA isn’t MBAs. It’s that sources of corruption / bias were identified and counteracted with rules. And rules. And rules. And rules. And many of those rules appear to counter the common sense of the average person. So the average person believes the institutions don’t hold value. That and politics meant that lots of the laws that govern those institutions assume that no citizen is an honest mechanic and they all need to constantly prove to Vogons that they aren’t dishonest.
A great dive into the last park was done by Jen Pahlka in _Recoding America_.