I Disagree With These Responses To Thomas Friedman’s VC Proposal

I already wrote about this here, but I’m seeing more responses to Thomas Friedman’s VC proposal that don’t build on Fred Wilson’s post.  Here is one from Don Dodge (via Brad Feld):

“Government should create incentives for investment.  It is probably best not to make the investments directly. There are already some good programs and incentives in place that have been forgotten or underfunded for too long. Pouring money into these programs is certain to stimulate investment, inspire innovation, and create jobs.”

Fred said there is already too much money in venture capital.  But by creating incentives for investment, the only thing you’re doing is allowing more money, albeit from other sources, to enter the venture economy.  If there’s too much money in the venture economy, we have to identify the bottleneck and address that point in the model.  Creating more incentives for investment is not addressing the crux of the issue.  I’m not sure exactly what is but I put forward some ideas in my previous post.