[dv_dt]

It's funny that the model we ended up with is that social activities of government can only be funded by budget-constrained financing where deficits are viewed with alarmism, with taxes not really causing strong growth/shrink effects.

On the other hand commercial activities can be funded via issuing currency through fractional reserve banking - causing national and global asset bubbles with periodic recessions and terrible effects on growth and productivity.

I think we need to move to different mental models of both to advance past our current economically induced problems.

[chii]

> social activities of government can only be funded by budget-constrained financing

> commercial activities can be funded via issuing currency through fractional reserve banking

It's because the benefits of social activities cannot be captured and its value extracted. Commercial activity can - and therefore, there's motive for somebody to fund it to get richer.