Entrepreneurs discern wise investments from those that are unproductive with the help of economic calculation.
FORBES: Since Monetary Spending Is Unequal, Who Spends Wisest?
In so far as anybody's done any economic calculation, it demonstrates that we certainly wouldn't be better off in Nafta.
If spending, however, is funded by coercion and apart from economic calculation, scarce goods are wasted, and the result is relative impoverishment, prolonged recession, and unemployment.
FORBES: Since Monetary Spending Is Unequal, Who Spends Wisest?
But the alternative you put forward namely, that government play a greater role in certain aspects of last-mile broadband infrastructure raises profound concerns involving transactions costs (which are intertwined with public choice theory and the economic calculation problem).
The seen here is renewed consumption that will goose the charitably worthless economic calculation that is gross domestic product, but the unseen is the future Googles that will likely never see the light of day thanks to government programs that discourage saving.
Trying to grow sustainable economic prosperity by resorting to government spending is doomed to failure because bureaucratic spending is not predicated on economic profit-and-loss calculation.
FORBES: Since Monetary Spending Is Unequal, Who Spends Wisest?
Sober experts both inside and outside the administration realise that the economic good news cannot last forever, and that the pendulum of exponential calculation can easily swing back.
Spengler attributes this poke in the eye to a cold calculation by the Pacific rim types that the United States is no longer the region's dominant economic power.
The calculation for Angela Merkel and for Germany has to be this: If all of Germany's economic might were thrown behind saving the euro would it be sufficient or could it end up de-railing the German economy?
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