Re:Nicholas Taleb: The Great Bank Robbery
by yummyfajitas on Monday September 05, 2011 @05:37AM
(#2961715)
As the authors state - that 5 trillion is not going to build schools or hospitals.
It's almost certain that some chunk of it is being spent on (for-profit) hospitals and schools. But you are correct - some it is is spent on automotive manufacturing, telecom infrastructure, heavy equipment producers, sporting goods, etc.
Is there some reason to believe that schools and hospitals is a better use of the money than these other projects?
>Whatever they don't consume is reinvested in the economy.
This is true of all financial transactions. The question is, are resources being allocated efficiently? As the authors state - that 5 trillion is not going to build schools or hospitals.