I was recently having a debate with a conservative friend about the efficacy of infrastructure spending by the government vs. private sector. His point was that any dollar spent by the private sector will be more efficient than the same dollar spent by government. I generally agreed, but pointed out that the private sector under-invests in things like infrastructure and R&D as a matter of basic economic theory (to read more on this check out my article about the concept of “market failure” here). Additionally, I made the point that borrowing $1 at near-zero rates and investing in infrastructure & R&D, … Continue reading this post
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