64. The multiplying effect of investments in new technology
I
have seen several social media threads objecting to the proposed EU Recovery
Plan on grounds that the funds are earmarked mainly for technology sectors
related to the new economy, and it does therefore not help companies that
suffered most directly from the pandemic. This reveals a misunderstanding of
how the economy works. Rather than direct compensation and support (MEDE fund
is for that purpose in any case, not the RF), funds given to new technology
companies with the potential to dominate a growing sector multiply as these
companies grow. Money is spent locally, through purchases and salaries, and
reaches traditional business that way, in larger sums than the direct help. Can
you imagine the amount Google employees spend at restaurants, shopping malls,
car dealerships or cafes in Mountain View, or Microsoft employees in Seattle? More
than direct help to restaurants, we need to grow our own next generation globally
leading companies, and this is what the Recovery Fund aims to do
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Comments
We need some changes to some of those governments if we are all going to align to prevent a catastrophe much greater than COVID