What if government invested in business instead of squeezing it?

The COVID-19 pandemic has prompted many social scientists to reconsider fundamental economic and government structures. While most aim to vastly increase state power, Marianna Mazzucato, professor of economics at University College London and author of the new book Mission Economy: A Moonshot Guide to Changing Capitalism, has a new, more optimistic idea. What if government acted like an angel investor for business? As reviewed by Frances Cairncross in the Literary Review.

The ambition of government should be to set off catalytic reactions across society, an important part of which would be performing as a better partner to business--helping steer change toward meeting society's challenges, offering clear rewards for businesses willing to 'make it happen,' and stumping up the high-risk early investments that businesses tend to shy away from. And in taking such risks, government would be recognized as an active investor--not just a lender of last resort--and command public support for sharing in the rewards.

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