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I like your analysis elsewhere. But you can’t avoid misallocations always. Some risk has to be taken by everyone. Even the private markets miscalculate roi.
by naveen99 3y ago
I like your analysis elsewhere. But you can’t avoid misallocations always. Some risk has to be taken by everyone. Even the private markets miscalculate roi.
You also can’t avoid debt (printing money). At the simplest, you can tell yourself you will postpone your own retirement to take the risk of misallocating resources yourself, for a gamble.
- nvm0n2 3y agoThat's true, but market misallocations do eventually correct (recessions). Government mandated misallocations can go on for decades without anything to naturally check them. I'm not sure what you mean in your second paragraph. Keeping the monetary base stable is eminently possible.
- naveen99 3y agoYou can owe yourself (your future self) money. You can keep energy in reserve or burn at a greater than sustainable rate (give a 110% in nba speak).