Venture Capitalism not Crony Capitalism

Venture capitalism is, and always has been, the heart of capitalism. There is nothing "new" or modern about it.1 Venture capitalism is one or more private investors financing a risky new venture (thus, the "venture" in venture capitalism) -- or a private investor's attempt to salvage an already existing, but troubled, business. Venture capitalism takes the risks that banks won't and that governments shouldn't. Crony capitalism is the system of politically motivated handouts from the government disguised as bailouts or "investments." America was created by venture capitalists like Thomas Denham and Hugh Meredith. Both men worked as partners with Benjamin Franklin. Denham and Meredith made investments that allowed Franklin to pursue a career in publishing.2 The rumblings of revolution can be traced to Franklin's failed effort to be on the receiving end of a crony capitalist handout. When Pennsylvania's Lieutenant Governor (for the British Crown) Sir William Keith reneged on his promise...(Read Full Article)