Why Infrastructure Spending Doesn't Drive Innovation

in #taxationlast month (edited)

Taxation does not produce a pot of money from which funding is drawn for infrastructure projects. What governments do is decide on a bill, calculate its costs, print whatever the cost is of its currency, then spend it, overwhelmingly in the most inefficient way possible due to the total lack of oversight, transparency or competition; and then at the end they tally up what they’ve spent and try to use whatever they collect in taxes in an attempt to pay off the debt created by just creating the money out of thin air. If the taxes don’t cover it, which they never do, who cares, the country just gets in debt, to the point where the interest payments on the US debt is now larger than its military budget. That’s a key thing to understand when you try to paint taxation as the money spent on infrastructure.

It’s also completely insane to think like infrastructure is the investment you make to produce a highly innovative and industry leading company like Amazon. Like, it’s not as if there were 1000 Jeff bezos’ waiting to make Amazon and the one thing missing was the postal service getting that extra billion dollars with which it will change nothing visible. It’s a fantasy to act like there is any causal link between the funding of the postal service and the creation of Amazon today. Giving credit to government spending for things like this is cartoonish.

That aside, we then have to ask ourselves, what right do we have to steal as much money as possible before causing impoverishment just to try to minimise the amount of new debt a hyper inefficient government accrues from its own inefficiency and systemic poor performance? There is no moral or economic calculus there that I can see.

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