Sunday, February 20, 2011

Haplessly Venturing

Yet more crony- immersed proposals from Scott Walker. He wants the state to push forward with a venture capital fund. The government must do all it can to coddle business. As has been evident over the last week, Walker believes it is the government's only duty - to coddle business.

Another privatization-esque initiative that is purely payback to political allies and does next to nothing to create jobs nor improve Wisconsin's economy. Just another good way of using public dollars to fund private escapades.

As I have previously posted:

"Josh Lerner, of Harvard, has found the number of exceptional venture capitalists is very small. Harold Bradley, of the Kaufmann Foundation, believes venture capitalists have plenty of money, but allocate it very inefficiently, and therefore should not be receiving additional public dollars with the hope of boosting a local economy. Bradley and Carl Schramm, in an article for Business Week, write that the current focus on fees has promoted start-up flipping rather than nurturing.

In the end, venture capital amounts to one very small component of the overall capital market. An effort to attract more dollars to boost our local economy is desirable, but to what extent we should see venture capital as the goose that lays the golden egg is debatable."

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