Econ101: Any market economist who has worked on developing countries knows about the difference between social and economic return to investment, & how government must act based on this difference: Govt must invest directly or give financial incentives to private investors
https://twitter.com/michaelxpettis/status/1402884406209957890
2/* (correction) ….difference between social and private return ...
3/scba Difference btwn social & private return has to b larger than cost of intervention, incl inefficiency induced by taxation & the administrative costs(+corruption) of intervention. Beware of political benefits being mis-represented as social benefits. Benefit/cost <0 is posbl
4/scbs #Econ101 Conversely, when the social benefit is less than private benefit, as in,(1) the production and/or use of polluting substances & (2) social media, which facilitates hate, violence, and terrorism, there is a need to regulate and/or tax that economic activity!
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