Government-owned contractor-operated models solved wartime capital risk
The US government utilized the Government-Owned Contractor-Operated (GOCO) model to finance and build massive manufacturing plants because the private aviation sector could not justify the capital risk of building specialized, non-peacetime infrastructure.
The argument
The guest explained that while the government initially tried to let private companies finance their own expansions through tax incentives, the sheer scale and specialized nature of the required factories (which were useless for peacetime demand) forced the government to fund and own the facilities while private contractors operated them.
The thesis, stress-tested
✓ What validates it
- —
▸ Risks discussed
- ▸Post-war excess capacity and uselessness of specialized wartime infrastructure
Hear it yourself
"And you see this kind of across the board in, wartime mobilization that most of the, facilities and manufacturing plants and things like that, for building the the armaments, were the sort of government owned contractor operated model."
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