This is seldom taught in high school, or for that matter, college: There is a major difference between a dollar “invested” by government and a dollar invested by private industry.
State-control, liberal-leaning politicians believe that they’re the same.
That it’s better if government makes the decision to spend. Or as
the administration says, “invest,” as opposed to private
enterprise doing the function.
The
government allocation is made by a political decision. That is often
subject to pressures which have nothing to do with supply and demand.
Rationing and corruption are bound to follow. Privately
imposed decision is, however, more likely to conform to what the public
wants.
Moreover,
private industry investment has a multiplier effect, while government
spending does not. Government jobs have no leverage impact on the
economy. Their purpose often has political, social and environmental
intentions.
Governments
do not innovate and create new companies and multiples of jobs. Nor
do they enervate the needed psychology of a booming economy.
Psychological effect is most important. (See the Earl J Weinreb
NewsHole® comments and @BusinessNewshole tweets.)
No comments:
Post a Comment