The healthcare safety net is a very big one, and a big disincentive to risk-taking in the U.S.
Only for lower income earners. A great health plan is $1k-1.5k/mo, which is crushing if your savings or excess capital are in the 5 digits or less.
If you’re financially independent or wealthy enough to be (independently) doing a startup or taking on a business venture, it’s a rounding error in the books.
Correct. That's why SV startups are billionaire's playgound.
And billionaires are much more scarce outside of US (and those who exist have better chances investing in other fields).
That's why SV salaries for developers are so crazy.
It doesn’t take a billionaire,
but it certainly doesn’t hurt. A couple million can work, or half a million if someone is crazy.
Your point still stands though.
You can raise capital so easily with any traction (seriously, if you have any credible paying customers at all YC will take you and that unlocks funding from everyone else). The cost of health insurance is negligible compared to the astronomical salaries of software developers.
Must be causing the huge lack of entrepreneurship in the US vs the rest of the world. /s
https://ceoworld.biz/2021/01/03/worlds-most-entrepreneurial-...
If you are running business, your loses are opportunity costs. Eg. you have already 100k EUR yearly salary and you decide to try running startup. If it fails after 5 years, so you didn't get any money from it (eg. you had to paid debts at the end), you probably lost 500k EUR in opportunity cost.
Progressive taxes incentivize risk taking in lower and lower-middle class, because you are protected from "total failure", but disincentivize risk taking for upper-middle and upper class, because expected rate of return is lower.
At the end of the day, there is no single "right way" to run a state. You have to make tradeoffs, decide what you value more and what you value less.