3 ms·
No, we can't be "honest" and accept your wild claim about the best use of capital. The entire economy is based on the market determining the efficient allocati
by yetanotherphd 13y ago
No, we can't be "honest" and accept your wild claim about the best use of capital.
The entire economy is based on the market determining the efficient allocation of capital. This is not an absolute truth, but an approximation based on hundreds of years of theoretical and empirical work. In the absence of significant market frictions that would drive capital away from the AEC industry (and low profits are not a market friction) there is no reason to think that the current allocation of capital is inefficient.