Frank Merton
Active Member
A public-private mix is where the world is going. The biggest problem with public enterprise is not corruption, although it enters into it, but patronage and cronyism and empire building and the fact that it's the public's money. The biggest problem with private enterprise is monopolistic behavior, which can only partly be prevented through regulation, and the fact that profit prevails over public interests (such as with the environment).How well Keynesian ideas work depends on the skill, intentions and sincerity of those implementing Keynesian policies. Investing in public works is effective, but less so if channelled through the private sector. Raising wages (and therefore social security), investing in education and training, public housing to reduce the amount siphoned out of the productive economy by rentiers ... you can achieve loads. If you want to.
So neither by itself really works very well, and a mix of the two is an unhappy compromise.