One contention of the Republican party is that Democrats don’t understand business and are bad for business.
GOP front-runner Mitt Romney has basically built his entire campaign on the theory that he knows how to run an economy and the Democrats don’t.
Given this, why does one of the most successful business-regions of America overwhelmingly vote Democratic?
And if Democratic “big-government” and “high taxes” choke off innovation, investment, and incentives, why have so many companies located in high-tax, highly regulated California done so extraordinarily well?
We put these questions to Reid Hoffman, who is one of the most successful entrepreneurs and investors in the country. A partner at Silicon Valley venture capital firm Greylock, Reid has invested in Facebook, Zynga, and many other companies. He is also the co-founder of one of last year’s standout IPOs: LinkedIn.
In Reid Hoffman’s opinion, Silicon Valley’s success comes despite California’s regulatory environment and “big government,” not because of it. Silicon Valley, Hoffman says, is powered by its amazing ecosystem of investors, engineers, and entrepreneurs, along with more than a half-century of start-up culture. And the Valley’s overwhelming support of Democrats, Hoffman suggests, is due as much to the Democrats’ social views as their economic views.
But Silicon Valley is a big fan of the Democrats’ efforts to help start-ups, Hoffman says.
And Hoffman ridicules the Republican argument that increased taxes would make him and other investors and entrepreneurs work less hard.
For more of our interview with Reid Hoffman, see: Tech Billionaire Reid Hoffman: College Is Worth the Cost, Just Be Smart About It
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