1. Govt proposes to borrow funds to develop a certain project
2. Interest groups which may benefit start blowing their trumpet
3. The project is a traditional one with known outcomes historically.... but in their myopia persons are very comfortable with the familiar...even if it is sub-optimal
4. The money is borrowed and...Voila.... the outcomes are sub-optimal
5. Surprise!!
The problem here is failure to look beyond a narrow project analysis ... i.e. the failure to perform an opportunity cost analysis. That's how people's money is wasted
2. Interest groups which may benefit start blowing their trumpet
3. The project is a traditional one with known outcomes historically.... but in their myopia persons are very comfortable with the familiar...even if it is sub-optimal
4. The money is borrowed and...Voila.... the outcomes are sub-optimal
5. Surprise!!
The problem here is failure to look beyond a narrow project analysis ... i.e. the failure to perform an opportunity cost analysis. That's how people's money is wasted
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