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Economy doubt

Why cant govt investments be seen as an end in themselves ?
Why private investment is so vital?

Comments

  • Because govt has limited budget. It cant invest beyond a point. In socialist countries, where private investments are limited , you can notice the impact on infrastructure, technology, services vis a vis capitalist countries.
  • How private investment is done and wat all are its benefits?

    Wat does investment literrally means
  • Govt role is largely social welfare. So even if it invests is will be from a social perspective and not from an efficiency POV.
    Secondly, Govt has limited resources and infinite tasks.
    Third, Govt's today are expected to only act as facilitators and regulators and policy makers.

    Private investments help in recognising merit, earn profit, further invest, generate jobs and also achieve high efficiency. Private also would be involved in R&D to increase efficiency and provide better products to consumers.

    Investment would be anything that creates economic activity. Though I think investment should also include social-economic development.
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