Advancing social goals through public policies is one of Government's main roles. However, the alternatives available for reaping social benefits should be carefully weighted against the costs and benefits these alternative set of actions generate. After an examination of Commission on Economy, Budget and Finances' proposal for a preferential treatment of resident producers in the allocation of public contracts, we contend that this decision will stimulate national producers to increase their output and make optimal efforts on parameters such as quality and price. Moreover, if this policy is enacted then it will discourage foreign investments and that will also contribute to lower public revenues available for investing in social policies.
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