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by pbh101
3519 days ago
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The government is not literally just 'us.' It's a contentious idea: "government is just the word for the things we choose to do together" was oft-repeated by Rep. Barney Frank. He was repeating it because not everyone agrees. I think the primary problem of government funding is waste and the potential for corruption. Waste because the government is more immune to profit motive and thus can throw good money after bad for a long time. Corruption because you need to convince some bureaucrats v. all your customers (or whoever the market needs). The flip side is that, done well, you can get things done that no business could get done on its own. So, if Tesla/cleantech succeeds, nobody will remember government funding as some sort of attenuation or 'asterisk' on the win: it was getting the industry over a hump, but into self-sustaining success. Win all around. The problem is if the government support ends up propping up business models that have no hope of actually being viable when that support goes away. If cleantech ends up failing, then the government backing that which couldn't succeed in the free market will be remembered. But it's all a tradeoff: we're not going to be perfect every time and should be prepared to accept some misses if we think bootstrap government funding of promising but currently non-viable products is a worthy allocation of taxpayer money. EDIT: sibling comment has great additional point about market distortion being a problem too. |
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Definitely contentious. A more correct formulation is "government is just the word for the things we are forced to do together"