Quote:
Originally Posted by McG
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The government is not meant to be an efficient allocator of capital. It is not intended or expected to compete with private industry. It is intended to act for security, protection of citizens, and public order. A debate can easily be had about what else it should or shouldn't be involved in, but the fact of the matter is that it is not ever intended to be an efficient allocator of capital. ...
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I didn't want to quote your entire post. But what a great post, McG!
Minor disagreement/comment on the underlined quoted part: I'd say it would be idealistic and aynrandic to draw the line just at law, order and protection. A civilized society must guarantee and backstop caring for those who can't take of themselves without help: children, disabled, elderly. That goes further to education, health care and elderly care. It is the extent of each one of those components that becomes very subjective and depends on the political leaning of the ruling government. And this is where efficient capital allocation decisions are crucial for any government, because they are allocating our money.