>>515089988
>As long as people work, things just work.
That's not how it works anon.
public schools increases the net income of a family while makes private education less profitable. In such trade-off, the ideal would be to offer public education at the same cost and quality of private education. However, the stipend per student in a public school covered by the government is greater than the stipend required by a private institution while the education quality is not good. This imbalance would create a distortion in the education market. But at least there's some value there as well as with public health and security
Now public infrastructure must have a different analysis because it's not only about how much money i make some car owner saves in tires/repairs or how much money some agency saved from not renting a building. Public infrastructure must respond a purpose and a socioeconomic (including environment) analysis which it's not always positive. you can see billions of dollars wasted in blank elephants made of steel and concrete. And that's how you're no longer producing value, you're destroying it.
BUT, where does the money come from? As long as people work, things just work, right. Nope
In every country economy, value is produced in the private sector, that money flows to the public sector and as long as the public investments produce value you can say that public investments are working. the moment public investment don't produce value, government becomes a burden on the private sector. When economic growth is no longer able to cover the state's losses, the private sector will begin to suffer, and like a snowball, the public sector, which depends on the ailing private sector, will also enter a crisis. Then you'll see governments begin to cover fiscal gaps with loans, because an inefficient government will never stop celebrating with other people's money.
Now you may ask me, but people need jobs and money to move the economy?
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