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PDC’s Seeds Unlikely to Grow
by Ben Shelton
You may remember Sam Adams’ February promise to give $500,000 to small businesses around Portland. Currently, a five-member board, appointed by the Portland Development Commission, is seeking an investment manager for the Portland Small Business Seed Fund. Public venture capital programs, however, don’t pay; they ignore real business solutions and starve money from the critical functions of government.
How much government is the right amount? A variety of studies have found that economic performance is at its greatest when the size of government is somewhere between 15 percent and 25 percent of gross domestic product. Right now, the U.S. government has a GDP of 40 percent—which is twice the optimal level for maximizing growth. The relationship between the size of government and economic growth is called the Rhan Curve, and is discussed further in the video below from Dan Mitchell at the Center for Freedom and Prosperity.