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Old 06-12-2007
danielpalos danielpalos is offline
Secretary of Defense

 
Member Since: Jun 2006
Location: US, California
Posts: 3,045

   
Re: Economic theory and politics.

What if the public sector operated any potential public good (in the form of infrastructure, and infrastructure development) and administered the physical layer of these sectors: telecommunications, rail, and energy.

By ensuring access to markets, the public sector could be providing a useful service that promotes the general welfare. These "conduits" to markets can generate revenue, in the form of a general tax.

The private sector will be able to provide "content" via that conduit at less cost, due to not having to purchase and maintain capital intensive infrastructure.

Conversely, the public sector will be able to generate revenue by specializing in natural public sector monopolies where it can use scale economies to its best advantage.
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