Startup generation ready to fix economy - msnbc.com(msnbc.msn.com)
msnbc.msn.com
Startup generation ready to fix economy - msnbc.com
http://www.msnbc.msn.com/id/43976881/ns/business-eye_on_the_economy/
5 comments
If we want to save the economy it starts by congress realizing they allocate capital poorly and should stop doing it.
"One element would be a program to forgive student loans and debt for young entrepreneurs, which he says would address a major hindrance to recent graduates who want to set up their own shop."
This is silly, either everyone owes their debts, or they don't. It's tantamount to pushing your student loan debt onto everyone else and reducing the risk that the lendee has by spreading it to everyone else. If you want to have the reward of starting a business then you need to take the risk, otherwise society should also get the profits from the business. (eg. when you sign the document saying your loans are forgiven then the people get 90% of their company because they are taking all the risk).
The idea that a Harvard grad should be bailed out by a person making minimum wage so they can be risk free enough to start a business is ludicrous. If someone was so stupid to agree to take on debts that can't be bankrupted to the degree that they can't rent servers for free from Amazon, Google, Microsoft, et al, then they deserve what they got coming to them. Bailing these people out at 22 will lead to the next generation of too big to fail companies that can't manage a balance sheet, nor understand the different types of debt and the legal obligations that come with them.
"One element would be a program to forgive student loans and debt for young entrepreneurs, which he says would address a major hindrance to recent graduates who want to set up their own shop."
This is silly, either everyone owes their debts, or they don't. It's tantamount to pushing your student loan debt onto everyone else and reducing the risk that the lendee has by spreading it to everyone else. If you want to have the reward of starting a business then you need to take the risk, otherwise society should also get the profits from the business. (eg. when you sign the document saying your loans are forgiven then the people get 90% of their company because they are taking all the risk).
The idea that a Harvard grad should be bailed out by a person making minimum wage so they can be risk free enough to start a business is ludicrous. If someone was so stupid to agree to take on debts that can't be bankrupted to the degree that they can't rent servers for free from Amazon, Google, Microsoft, et al, then they deserve what they got coming to them. Bailing these people out at 22 will lead to the next generation of too big to fail companies that can't manage a balance sheet, nor understand the different types of debt and the legal obligations that come with them.
I agree it would make more sense for the next generation of students to seriously consider alternatives to certain overpriced educational institutions.
On the other hand, with the printing press at maximum, now is a good time to have debt.
On the other hand, with the printing press at maximum, now is a good time to have debt.
For example, a friend of ours started a business creating fantastic pastries and desserts for restaurants. Her company will never go public. But she employs 8 or 9 people who probably never would be hired by a tech startup.
A couple of the big obstacles to starting a business need to be addressed:
1. Healthcare - our friend wouldn't have started her business if she didn't have coverage through her husband's employer. She couldn't afford the financial risk.
2. Intellectual property laws are a mess. Everyone on HN already knows about the patent fiasco, but the continual and unjustified extension of copyright law also presents an obstacle for some endeavors.