Balaji Srinivasan


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 points out, every new bridge needs an ROI calculation too — or else it just saddles townspeople with needless debt.

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.

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