alt Hacker NewsWhat distorting effects of public funding? What about the distortionary effects of the market? I'll offer the suggestion that what you read is brainrotting private market propaganda designed to erode the public institutions that make America happier, healthier, and wealthier.
In economics discussions regarding public funding policy, the concern of "crowding out" commercial firms or nonprofits is a real concern. It's definitely an observed, measured, and reported phenomenon.
In the end, incentives matter.
https://en.wikipedia.org/wiki/Crowding_out_(economics)