Yes. That's exactly the reason. We get Amazons and the like because individuals take inordinate risks with the hope of striking it big. Governments don't generally do that.
Also please quit equating the idea of start ups with Amazon.
We can still have capitalist competition for start ups but once they are as big as Amazon who can change entire society wide behavior with huge repurcussions the rules of the game should shift a little.
That's a good point. So much of our discussion about businesses and the economy uses small businesses as a shield. In reality, most small businesses fail, and if they do succeed, they stay small. It's very reasonable to move our society towards a more collective economy for the big parts while leaving the start ups, mom and pops, and corner coffee shops alone.
Also people keep missing the role of accumulated capital.
Jeff bezos's son can start 10 small businesses but talk about taxing him and somehow they bring up the middle class guy who finally made his first millions after slogging and probably starving himself for 5 years or something.
Here I think the solution is a strong policy of inheritance tax on these millionaire and billionaire babies.
I don't think that's true. For example, both the companies you mentioned are internet-based. The internet was actually developed from the US government's ARPANET. Without the government investment and risk-taking, neither Amazon nor Facebook would exist! (We also wouldn't be having this conversation.)
Regardless, you might appreciate my previous article on "risk" in the economy. It's more prevalent to the discussion of risk than this piece. Enjoy!
Joe, A socialist economy would never have produced an Amazon or Facebook. Do you think it is merely coincidence that these are American businesses?
I'm sorry, I don't understand your comment. Are you saying we shouldn't change the economy because we might not get the "next Amazon"?
Yes. That's exactly the reason. We get Amazons and the like because individuals take inordinate risks with the hope of striking it big. Governments don't generally do that.
also failures like SVB and lehman brothers are all also examples of "individuals taking inordinate risks with the hope of striking it big".
It's like Jon Stewart said long ago, "Businesses privatize their gains and socialize their losses."
Then let's stop socializing their losses. That's simply bad policy.
Couldn't agree more!
The thing with bail outs is that it's done to protect the larger banking system.
And I don't know what to think about that as much as I hate the whole bailouts policy.
Also please quit equating the idea of start ups with Amazon.
We can still have capitalist competition for start ups but once they are as big as Amazon who can change entire society wide behavior with huge repurcussions the rules of the game should shift a little.
That's a good point. So much of our discussion about businesses and the economy uses small businesses as a shield. In reality, most small businesses fail, and if they do succeed, they stay small. It's very reasonable to move our society towards a more collective economy for the big parts while leaving the start ups, mom and pops, and corner coffee shops alone.
Also people keep missing the role of accumulated capital.
Jeff bezos's son can start 10 small businesses but talk about taxing him and somehow they bring up the middle class guy who finally made his first millions after slogging and probably starving himself for 5 years or something.
Here I think the solution is a strong policy of inheritance tax on these millionaire and billionaire babies.
I don't think that's true. For example, both the companies you mentioned are internet-based. The internet was actually developed from the US government's ARPANET. Without the government investment and risk-taking, neither Amazon nor Facebook would exist! (We also wouldn't be having this conversation.)
Regardless, you might appreciate my previous article on "risk" in the economy. It's more prevalent to the discussion of risk than this piece. Enjoy!
https://joewrote.substack.com/p/there-shouldnt-be-risk-in-an-economy