The Entrepreneurial State in Developing Countries 

Your own opinion, look at the data.

Private investors invest money, governments create money. They cannot be compared. Private investors are money grubbing wheelers and dealers, that's the original pejorative sense of the word "capitalist." A capitalist was different from a landowner, capitalists were the go-between or "middle class" that took other peoples' money and turned a profit, like a prostitute turning a trick. Investment is not always for maximum profit. When Britain started to industrialize in the early 1800s, it was the "railway mania" that gave investors an outlet for all their accumulated capital. The railways returned very little profit and sometimes took decades to turn a profit at all, if ever. But investors understood that railways were an opportunity big enough to absorb Britain's massive quantities of surplus capital. Petty profiteering is for Wall Street traders. Governments create money and lend it out to investors via banks, and then collect taxes on the interest and profits. Joint-stock companies are private governments and private investors consolidate corporate power just as governments consolidate political power. The "private" sector only exists as the subordinate of the public sector. That's how political economy works. There is no private sector unless it is created by a public sector. Feudalism was a collection of private sectors with no public sector. Capitalism requires centralized state power.

@@jason8434 South American governments should "create" less money. They do it to spend more of it and buy people's voted by being populists. Not so much to build much needed infrastructure (railways included), or to invest in the long run. Their short-term mindsight is due to their focus on reelection They ultimately lend money to the biggest companies so they finance their campaigns. If you think of Brazil, we have low taxes for land owners and excessive taxes on work (secondary and terriary sectors of the economy). In many ways, we are closer to feudalism than we are to capitalism and we need more free market.

@@jason8434 everything you said is true, though

@@rafaecheve only when you include someone from the right in the conversation to make it a real debate. Did not seem to be the case when I saw the speakers being introduced in the video