The Use of Money and Opportunities for Innovation: Reflecting on Government Fund Management
Recently, the government efficiency committee (DOGE) formed by Trump and Musk has raised strong questions about the management of U.S. government funds, and Ethereum co-founder Vitalik Buterin has also joined the discussion. He believes that the government is overly concerned about negative evaluations on social media, thus missing many development opportunities. Vitalik urges the government to adopt a venture capital (VC) model, tolerating small-scale mistakes and focusing on evaluating large projects with potential.
DOGE listed some "absurd" examples of U.S. government fund usage on Twitter, which are quite amusing: from spending $28 million on camouflage design copyrights for the Afghan National Army, to spending $5 million to help fashionistas quit smoking, and studying the effects of heroin on Japanese quails for $510,000. These examples are truly laughable, highlighting the inefficiency and irrationality of government fund management.
Vitalik emphasizes that the government should avoid pursuing the myth of "zero mistakes" and instead adopt a venture capital strategy for small public projects, willing to take on a certain level of failure risk to seek potential high-return opportunities. He suggests that the government should focus on large-scale funding plans, such as national infrastructure construction, while maintaining an open attitude towards small experimental programs, thus stimulating true innovation.
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