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The central idea that the government knows what sectors are productive and not productive is laughable.
by fallingknife 4y ago
The central idea that the government knows what sectors are productive and not productive is laughable.
- Oxidation 4y agoSome sectors aren't "productive" on their own but still necessary. Railways basically never pay for themselves by fares paid by (mostly) workers out of post-tax income, but the value they bring to the economy by enabling economic activity is worth it. Roads, education, healthcare, much of these things would either be unprofitable or unaffordable if they have to be self-funding. But they bring social value even if they don't make their own shareholders rich.
- fallingknife 4y agoThe commenter I was replying to was not talking about social programs. He was talking about a command economy.
- anonuser123456 4y agoI’ve never understood why this argument wasn’t the first thing economists bring out as a counterpoint to MMT. The entire thing hinges on a central planner knowing where to spend money. Gee… we’ve seen that work out so well in the past.