3 ms·
> It's quite a gamble by the Biden administration - if it creates lots of flourishing businesses it will be well worth it. But if a lot of the funded ventures
by username332211 3y ago
> It's quite a gamble by the Biden administration - if it creates lots of flourishing businesses it will be well worth it. But if a lot of the funded ventures collapse after the money is spent then this additional debt will be a burden for the American taxpayer for quite some time.
Both will happen. First, businesses will expand to absorb the subsidies, then over time their assets will be sold to private equity to be destroyed.
Why run a business that earns 7% ROI, when you can get 5% risk free from the treasury?