Tuesday, March 12, 2024

Government Chips: Feds "Invest" in Moribund Tech Company

Back in the late 1800's through the early 1900s the US railroad industry and government basically "merged".  Railroad pensions, for example, are some government hybrid plan like Social Security. The railroads and early era of industrialization was a huge economic growth engine in the US and other developed countries, but it was well into the era of diminishing/negative returns by the turn of the 20th century.

A similar thing is happening in "tech" and the dot com companies that survived the early 2000s. It's just all out of gas. Now the feds are throwing money at Intel to build foundries in the US... Why does Intel need taxpayer money for that? If they had a profitable business model for the new chip plants they could easily get private cash for it. Instead the US and other governments around the world are throwing buckets of tax cash at private businesses.

Eventually Amazon will be getting federal money too... they probably already do.

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