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State as the Venture Capitalist of Last Resort
In times of economic fear and risk aversion, a strong entity, such as a state acting in concert with its central bank, is essential to break the cycle of anxiety. This entity must possess the longevity and financial resources to take on risks that individuals and smaller institutions cannot. Historically, leaders like Keynes and Roosevelt recognized this need, advocating for the state to act as the venture capitalist of last resort by investing in future economic stability and growth through today’s financial commitments. This approach, reminiscent of modern initiatives under the Biden administration, underscores the necessity of state intervention in revitalizing an economy during crises.