ineptocracy
n. A government or state ruled by people who are incompetent.
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Examples
2011
The city of Aspen's inept-ocracy has come up with yet another brilliant use of taxpayers' money, and they feel really good about it: Build a hydroelectric utility, costing somewhere between $10.5 and $16 million and disturbing the flow and riparian health of two modest, pristine creeks.
—Kris Cox, “Welcome to 19th century Aspen,” The Aspen Times, December 18, 2011
2007
Cardiff council operates a ‘no can do culture’ and morale among general staff is low. The council operates as a private club, with the Liberal Democrats, Labour and the Conservatives all too happy to perpetuate an ineptocracy.
—Neil McEvoy, “Call to cut council bosses’ wages,” WalesOnline, August 31, 2007
2001 (earliest)
Not for nothing do its critics call President de la Rua's regime an "ineptocracy". The riots and looting that have broken out in Argentina's cities bear witness to its incompetence.
—“Argentina's mistake was to think there was a shortcut to economic reform,” The Independent, December 21, 2001