> Governments of any shape are unable to accurately pick which industry to allow or prevent.
i would say that some gov'ts in the world does do this - famously the chinese CCP.
They dictate by providing state funding for industries they deem important (for whatever reason - geopolitically strategic, military, or welfare, etc). Whether it's the most "efficient" form of capital allocation is irrelevant (for them).
The people do not have a say, and in fact, cannot be doing any form of criticism - they may have feedback, but only in so far as the party allows said feedback. It's implicit that the CCP is picking for the "greater good" - but who is the judge of that? CCP itself is!
So by an act of tautology, they are doing it most efficiently!
Governments certainly try. The US does the similar efforts through subsidy type programs, I don't think the Chinese government are able to accurately pick industry any better. They have more force to put behind their decisions, like building ultra cheap real estate, roads and general infrastructure but I am not sure they have the ability to pick a specific piece of industry any better.
Ah yes, the one who over-allocated so much capital into real estate that it has more unused apartments than the rest of the world combined, 5 times over
With the greatest housing bubble has ever seen, and a deflationary spiral around the corner.
i would say that some gov'ts in the world does do this - famously the chinese CCP.
They dictate by providing state funding for industries they deem important (for whatever reason - geopolitically strategic, military, or welfare, etc). Whether it's the most "efficient" form of capital allocation is irrelevant (for them).
The people do not have a say, and in fact, cannot be doing any form of criticism - they may have feedback, but only in so far as the party allows said feedback. It's implicit that the CCP is picking for the "greater good" - but who is the judge of that? CCP itself is!
So by an act of tautology, they are doing it most efficiently!