How Bitcoin Highlights the Problem with Innovation Subsidies

Source: Foundation for Economic Education
by Dave Birnbaum

“Unlike classical economics, which focuses on equilibrium, innovation economics sees economies as dynamic and continuously evolving. While it’s true that the economy is a dynamic system, its proponents take this a step further, arguing that targeted government support can stimulate technological advancement, productivity growth, and economic progress. This approach has shaped policies in the United States over the past 20 years. Proponents point to the America COMPETES Act, STEM education initiatives, and technological research and development grants as notable outcomes. However, when you strip back the jargon, it becomes clear that innovation economics is just a new veneer on an age-old concept: government picking winners and losers.” (09/09/23)