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I don't see how public spending is immune to speculation, failed products, compliance and procurement costs! The rest are features, not bugs: * failed business

I don't see how public spending is immune to speculation, failed products, compliance and procurement costs! The rest are features, not bugs: * failed businesses free up resources for more productive activity * sales provide a feedback loop to ensure an efficient level of production * patents provide an incentive for fast deployment of new technologies And private spending is far more accountable because if an investor loses too much money they are out of the game, whereas if a bureaucrat or politician spends too much money they gain a bigger budget and a captive constituency. Anyway I'm not too interested in this general discussion; I'd be more keen on hearing if there are specific solutions to solve this particular problem, whether using private or public money. Not just "fund it" which isn't really meaningful without details.

cam_l 10y ago
Well, I never said that it was not, although I think the mix is somewhat different between private and public. Speculation and failed products might be reduced with public funding, but procurement costs might be increased, for example. Anyway, I was making the point that while the costs of those things might exist for both sectors—in the private sector they are split between multiple parties but they are invisible and unaccountable—in the end they are still borne by the consumer. On top of all that, you have lost opportunity costs ie.in a private funded system we end up paying for things we don't even need, rather than paying too much for something we do. I just see this issue of public sector waste raised, and it seems to me more a shibboleth than an accurate portrayal of the situation. Which is not to say there are not very real issues around corruption and poor procurement with government. But these exist in the private sector also, we just call it business.

cam_l 10y ago

Well, I never said that it was not, although I think the mix is somewhat different between private and public. Speculation and failed products might be reduced with public funding, but procurement costs might be increased, for example. Anyway, I was making the point that while the costs of those things might exist for both sectors—in the private sector they are split between multiple parties but they are invisible and unaccountable—in the end they are still borne by the consumer. On top of all that, you have lost opportunity costs ie.in a private funded system we end up paying for things we don't even need, rather than paying too much for something we do. I just see this issue of public sector waste raised, and it seems to me more a shibboleth than an accurate portrayal of the situation. Which is not to say there are not very real issues around corruption and poor procurement with government. But these exist in the private sector also, we just call it business.