Balaji Srinivasan

@balajis

22 days ago

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Actually, the idea that governments can spend without any concern for financial return is the fundamental incorrect premise of our time. As t.co/6WxW3RMRxx points out, every new bridge needs an ROI calculation too — or else it just saddles townspeople with needless debt. t.co/vMKWfoEiKa t.co/oUqPUrjJ0u

Break this into two cases: those governments that don’t issue debt in their own currency, and those (like the US federal government) that do. For the first group you really *can* do accounting for them like a business. For the second group inflation is the main constraint…

The entire concept that whatever a government spends on *must* be the common good is false. Public choice theory shows why policymakers often spend for their own reasons. And Strongtowns shows how that works in practice, with many case studies. t.co/6S0mQa2GJQ t.co/WWDNNboVW6 t.co/vMKWfoEQzI

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