6/14/2019

Elizabeth Warren Should Give Up Her Stake In A Bad Idea

"[G]ranting the government a stake in the business will, in effect, be like an arbitrary tax hike on companies who do utilize public research. On the margin that will mean they find themselves unfavoured relative to low R&D businesses (which in some cases might benefit more heavily from publicly provided roads or education, but who are not expected to give up a business stake in recompense.) If companies are keen to avoid expanding the share of profits attributable to government, they may also curb collaboration with public entities in areas where it might otherwise have been beneficial for consumers."