“Bureaucrazy” (bureaucracy + crazy) has been used when people feel that government red tape is overwhelming, creating a bureaucracy-crazy environment. The word “bureaucrazy” has been used infrequently since at least 1918.
 
A similar term is “democrazy” (democracy + crazy).
 
 
Urban Dictionary
bureaucrazy
Any process or organization that sacrifices intelligence and rational thought in favor of administrative red tape.
At first, the new executive seemed to have a handle on things. Then it became obvious she was just turning the company into a bureaucrazy.
by Steve R. Sep 28, 2007
   
Google Books
Mining and Metallurgy
Bulletin of the American Institute of Mining and Metallurgical Engineers
No. 136
April 1918
Pg. XIV:
The very first one is Bureau 113 of the War Department, and it is intimated that while we used to speak of Bureaucracy, the present pronunciation is Bureaucrazy.
 
11 December 1932, Salt Lake Tribune (Salt Lake City, UT), “Merry Quips Fly at Gridiron Club Frolic,”  pg. 8A, col. 1:
Aunt Dixie: Ho nice! There will be enough bureaus for the whole family this time. Tell me, Colonel Julep, what is a bureaucracy?
Hooey Long (interrupting): It’s French for bureau-crazy, and that’s the truth, or my name ain’t Hooey Long.
   
29 August 1935, New York (NY) Times, Amusements, pg. 25:
REVUE HELD IN GREENWICH
“Bureau-Crazy,” Satire of New Deal, Aids Valeria Home.
 
Google Books
Cecil McKay:
It wasn’t all sunshine
By Marjory McKay
Melbourne: The Hawthorn Press
1974
Pg. 118:
Such is bureaucracy, sometimes interpreted as bureau-crazy.
 
26 June 1979, The Times-Picayune (New Orleans, LA), pt. 1, pg. 15, col. 2 ad:
BUREAUCRAZY.
(Kaiser Aluminum—ed.)
     
Google Books
The Earth Is Our Mother:
A guide to the Indians of California, their locales and historic sites
By Dolan Eargle
San Francisco, CA: Trees Company Press
1989, ©1986    
Pg. 79:
Such is the “bureaucrazy.”
 
OCLC WorldCat record
Crazy bosses : spotting them, serving them, surviving them
Author: Stanley Bing
Publisher: New York : Morrow, ©1992.
Edition/Format:  Book : English : 1st ed
Contents:
Joining the Ranks—
Crazy Business—
The Boss with Five Brains—
Bully—
Paranoid—
Bureaucrazy—
Disaster Hunter.
 
OCLC WorldCat record
That’s bureaucrazy!: A sideways look along the corridors of power
Edition/Format:  Article : English
Publication: OCCUPATIONAL SAFETY AND HEALTH -LONDON THEN BIRMINGHAM- 27, no. 1, (1997): 13-14
Database: British Library Serials
 
OCLC WorldCat record
Bureaucracy to Bureaucrazy
Author: P K Agrawal
Publisher: New Delhi Manas Publication 2004.
Edition/Format:  Book : English
 
OCLC WorldCat record
Bureaucrazy
Author: Jon Kirk
Publisher: Chippenham : Pipers’ Ash World Wide, ©2008.
Series: Salisbury
Edition/Format:  Book : Humor, satire, etc. : English
 
Google Books
How to Be a Fierce Competitor:
What winning companies and great managers do in tough times
By Jeffrey J. Fox
San Francisco, CA: Jossey-Bass/Wiley
2010
Pg. 77:
Bureaucracy is bureau-crazy.
Get rid of it.