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by hunglee2 955 days ago
Biden is definitely printing money, but to be fair that is what the US has been doing for the past several decades. What is different with Bidenomics is the allocation of that money - the attempt at least is being made to convert excess capital into productive economy. Will surely be massive wastage though - probably up to 90%. Point is though, some SOE's might succeed, particularly if they are early to emergent economic niches. One legit criticism of Biden policy is that it is playing catch up rather than looking around the corner
1 comments
throw932490 955 days ago
> Will surely be massive wastage though - probably up to 90%..... One legit criticism

Would you agree that huge wastage (up to 90%) is a reason for legit criticism?

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orwin 955 days ago
As long as that money enter the primary market first and is not directly injected in the secondary like it used to since 2008 (the 'real economy' and not the 'speculative economy' if you will), it isn't a real issue if most of it is 'wasted' (90% is a bit high, but it depends what your view of 'waste' is).

I don't know the US, but in France the government overhead cost for Healthcare is 20% (for every 100€ collected for public healthcare, 80€ is paid to doctors/hospitals/medecine/nurses/PT, 20€ is paid to operations/public servants), and social security is sightly more effective, with 13 to 18% overhead (but it isn't really government, it's weird). A federal government will necessarily be less effective (as you probably have more layers), so I guess for the US I would expect something like 30% overhead?

Still 90% wastage seems high.

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hunglee2 955 days ago
the way think about this is that the state is acting as a mega scale VC, with similar hit rate. Needs 1 out of 100 to make it. Wastage is simply part of this investment game, what needs to happen at end point is the creation of national champions and national industry. That is the Biden promise and if he delivers it, it will be worth it. For what its worth, I think 'he' will fail because this is a multi-decadal commitment, which the political system in the US will be unable to see through
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