Quote:
Originally Posted by kydmb99
I’m kind of confused by what this means tbh. I’m assuming it’s about the bailouts?
I would say maybe government shouldn’t serve that role and for the vast majority of corporations it doesn’t
|
Government research grants are a good example. Government either foots the bill or splits it with a private company for say medical research. If it fails, the government loses the money but if it succeeds and is viable then the private sector comes in and buys whatever it is knowing it’s probably going to be a success and make money.
If the private sector didn’t have the government playing this role they’d have to put up and risk their own capital, leading to many more losses and probably companies failing all the time when things don’t pan out. This way, the private sector doesn’t take the highest risks, the government does.
So, is this capitalism? And does the private sector, or government get the credit for all these inventions and breakthroughs?