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Incentive alignment bonds aim to improve funding for high-value programs, suggesting a shift in government spending dynamics.
Government spending is optimized for lobbying intensity, not net societal value. Programs with 100:1 benefit-cost ratios get billions while programs with negative returns get hundreds of billions. Incentive Alignment Bonds flip this by creating a capital pool that rewards politicians (via campaign support and post-office opportunities) for funding high-NSV programs over low-NSV alternatives. The result: public good becomes private profit for both investors and elected officials.
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Mike P. Sinn (2026) studied this question.
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