Home Politics Gov. Newsom Appeals to the Sunk Cost Fallacy to Promote the Failed Bullet Train

Gov. Newsom Appeals to the Sunk Cost Fallacy to Promote the Failed Bullet Train

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In the world of private enterprise, business owners pay attention to costs already incurred that cannot be recovered, also known as “sunk costs.” Government officials, however, see sunk costs as an incentive to promote public projects where costs clearly outweigh benefits.

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