Is this any different from the text book, worst case public works example of paying one person to dig a hole, and then paying someone else to fill it in?
Defending the liberal tradition in history, science, and philosophy.
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Defending the liberal tradition in history, science, and philosophy.
Is this any different from the text book, worst case public works example of paying one person to dig a hole, and then paying someone else to fill it in?
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Yes.
Digging holes & filling them in is not particularly attractive work; hence, people will not seek it out unless they have little alternative.
Working as a lobbyist/lawyer/consultant for a government-controlled company doesn’t involve getting hot and sweaty and (strangely) can even carry high prestige.
Hence, the current bailout distorts human capital allocation much more than does the hole-digging-and-filling and is considerably worse for the long-term health of the economy.
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