Comment by zmmmmm 4 days ago
you can extend that to all Silicon Valley and the US in general.
It has one of the weakest social security systems. Not even proper healthcare is guaranteed. Yet it out innovates all of Europe, Canada, Australia, other places that have incredible social "safety nets".
I agree with the other commenter: safety nets and multiple tries are always good to have, but persistence and grit are even more important, and these come more from necessity.
EU countries also have very high tax rates, which feels like the community is the primary beneficiary of your business, not you the entrepreneur. This alone severely reduces the financial incentive of starting a business. There's also some weird cultural stigma in the EU's more socialist countries (like France), where the system is way more comfortable for you as an employee rather than a risk taker. Let's call a spade a spade.
You can have all of the “grit” you want to and still fail. You just never hear about the failures.
Most of the US graduates have their degree and a network to fall back on. It's nice to have actual money in the bank, but it can also be acceptable to have a high chance of getting a rewarding job if the moonshot doesn't work.
In other words, human capital.
Most of the entrepreneurs I meet are not going to be homeless if things don't work out. They'll be employed.
Exactly this many also have parents who can help subsidize them, stay on their parents health insurance until they are 26 and worse case move back home. This isn’t just the privilege rich, this can also be your mid to mid upper income couple who can help their kids out.
"But if they hadn't, I would have a place to sleep and eat."
Forgive me for asking, but (if it's acceptable to reduce it to that) isn't joining the army or something gets one covered? The army service would come with the added bonus of not letting you go soft in perseverance and risk taking areas.
/sarcasm
Necessity is too fallible though, if Bezos was driven by necessity he would have sold Amazon in 1996 and retired.
That level of success requires either just pure psychopathic drive or some kind of deep anger that forces you to keep proving yourself again and again.
Beyond the lack of safety nets, etc., we just have a culture in the USA where you continually have to compete to prove your value as an individual.
There was some story I read where Farmers wanted to get immigrant laborers to work longer hours, so they offered a temporarily increased hourly rate. Like for the next month we pay $5/hr instead of just $3. The thought was workers would work like mad to hoard as much of the increased rate as they could. The opposite happened, they started working less because they just wanted $X/month and then to relax the rest of the time. That always stood out to me as a stark example that our American psychology is not at all universal, and is kind of perverted in certain lights.
In some areas and for some people, Medicaid probably does count as proper healthcare. But it certainly doesn't for other people / other places. Imagine there being one doctor within a multi-million person metro area who takes Medicaid for some sub-specialty. 90 minutes away from you by car. And you don't have a car. This is the reality for millions of Medicaid recipients, including ones I know personally in Chicago.
Not Medicaid, subsidized ACA. I know a lot of young healthy people that just take the chance of not having health care. Worse case you can’t squeeze blood out of a turnip if you have to go the emergency room.
I don’t think my older (step)son has had insurance since he got off our plan at 26 over two years ago.
Sure, although in some areas healthcare is effectively unavailable to Medicaid plan members because providers have stopped accepting those patients. Being insured doesn't mean much if you can't schedule an appointment.
https://www.wsj.com/health/healthcare/medicaid-insurers-doct...
> Yet it out innovates all of Europe, Canada, Australia, other places that have incredible social "safety nets".
Probability: highly unlikely.
Speaking for Europe, I see a lot of silent innovation. No press, no LinkedIn posts, not an article on their website. There are a lot of US firms that shop in Europe for high tech. (I know of instances were the US company buys the IP from the EU supplier + take public credit for it + forbids the supplier for showcasing their success in public.)
What is different is:
1) the amount of money available in the US. The US enjoyed a very beneficial position post-WOII, enabling them to run high deficits.
2) the US has a positive attitude to entrepreneurship. You are not a failure when your company goes bankrupt, you learn from it and you go-go-go.