Sunday, August 26, 2012

Something Ventured, (Virtually) Nothing Gained

Walker, groups try again for venture capital bill

Why? Why is this venture capital bill so important to Scott Walker?

Why must Republicans continue pursuing policies (supply-side economics, venture capital, etc.) which we know do not get the return on investment to make them worthwhile?

Well, we know the answer to that, too. It's an obscure route for funneling money to cronies using public dollars.

Those who have looked into venture capital performance have found, "The latest research seems to indicate that ship has already sailed. And, when the industry was supposedly booming, it was only a select few venture capitalists whom were making most of the gains."

And, as I previously wrote, "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."

Can we stop wasting money on Republican cronies in the name of public policy?

Nothing in life is perfectly efficient, so if we're going to be making investments as a society, I'd rather it be going to the poor, elderly, children, special needs, or everyday workers...not the already well-to-do and fiscally fortunate.

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