Get the feds out of venture capitalism

What business is it of federal bureaucrats and politicians to risk or expend tax dollars to finance private enterprises? That's a question left unaddressed in much of the coverage and commentary about the widening half-a-billion dollar Solyndra scandal. A USA Today editorial touches on this larger issue: "...government should be extremely wary about betting tax dollars on specific companies. If there's one thing the marketplace virtually always does better than government, it's picking individual successes in an uncertain and highly competitive business. In fact, government involvement can unfairly tilt the playing field toward one company and away from competitors. What the government can do is create an environment that makes it possible for the best companies to emerge and thrive..." Federal government involvement in financing private ventures is fraught with peril, even if the intentions are pure and not politically motivated (rare though that is). Among likely outcomes are...(Read Full Post)