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Possibly, and understand that when is a very important question. Notice how if you place money in a bank, it gains interest. Similarly, the private capital syst
by newt0311 18y ago
Possibly, and understand that when is a very important question. Notice how if you place money in a bank, it gains interest. Similarly, the private capital system is very effective at deciding where and when to allocate resources. Allocating resources in an industry too early often means that all that money is lost or that it was not invested in another industry which could have had a significantly higher payoff. If history has anything to say about this matter, private markets are much better at allocation of resources (see famines of USSR and the "great leap forward" in maoist communist china).