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In the travel regulations case, we can see, and horrifyingly it's more of a "fraud is illegal on Monday" situation: https://www.defensetravel.dod.mil/Docs/perdiem/JTR.pdf

There are some sensible regulations there, like having someone approve travel requests, but there are also a lot of very narrow restrictions obviously added by someone who wanted to prevent Fraud X, but lacked the authority to change what was already written. The result is that you get more overhead with depressingly little payoff.

In principle you're right about the trade-off, but that's only the case when rule-writers have the authority to sensibly restructure what already exists.



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