In my country, there are people who's had to declare personal bankruptcy from this situation.

Also, be cautious about how early investments may artificially inflate the value of the company. Convertible debt is one way around that issue.

In other words tax income and the game is to hide income, tax wealth and you increase economic efficiency. Wealth taxes only erode wealth if you fail to make positive returns.

However, Amazon (as an example) does not pay dividends.

And also, this creates an incentive to pay dividends to shareholders, as opposed to re-investing profits in R&D, which is an odd (IMO bad) incentive.

The current tech formula seems to be "build the biggest moat possible - worry about profitability later"

While that is driving some of the fastest growth in history, one has to wonder what the landscape will look like once these moats are built. Will these companies have full power to price however they please?

If a company is incentivized to be profitable as they grow, would it lead to a more stable future where we have multiple competitors in each industry?

You see this now with the cloud vendor lock-in bullshit. Too much productivity wasted through too much unnecessary friction.