Good question. I agree it’s not obvious whether the government would use the money better than companies picked by banks.
The money could replace certain taxes. It might be more efficient to simply decrease taxes for all companies (and maybe people too), rather than having banks pick companies. I don’t claim to know this to be true, but it seems plausible. What do you think?
I appreciate your effort to help me understand, since I genuinely am interested in this question. As you say, the current system was designed the way it was for a reason, and so our starting assumption should be that any idea we have for a change, should underperform.
Do I understand your reasoning correct, that the current system creates a fairly optimal amount of capital that is invested (instead of consumed), and therefore can balance investments into future production, and consumption today?
Good question. I agree it’s not obvious whether the government would use the money better than companies picked by banks.
The money could replace certain taxes. It might be more efficient to simply decrease taxes for all companies (and maybe people too), rather than having banks pick companies. I don’t claim to know this to be true, but it seems plausible. What do you think?
I appreciate your effort to help me understand, since I genuinely am interested in this question. As you say, the current system was designed the way it was for a reason, and so our starting assumption should be that any idea we have for a change, should underperform.
Do I understand your reasoning correct, that the current system creates a fairly optimal amount of capital that is invested (instead of consumed), and therefore can balance investments into future production, and consumption today?