This argument put forth is part of a tautological one its proponents make.
Some of you may be too young to remember the good old, bad old days of the Cold War, but one thing that was supposed to be anathema to Americans were "planned economies". It was proposed, mostly by corporate types and their supporters, that the US should not be a planned economy, it should be an economy like how the US is run - the majority stockholders of corporations make decisions about capital and production.
What happens when production decisions are not planned? There is a risk capital can be spent to create a product no one wants. Isn't that half the discussion on HN - minimal viable products, agile development, and other methods to try to avoid this? Why do the angels, VCs, and now blessed founders deserve so much money? Because they took on risk.
So the VCs tell us we should avoid planned economies and have an economy with risk - where capital is wasted on products no one wants. Then we're told they deserve all of this money because our economy has so much risk. It's a great tautology if you're willing to swallow it.
Because planned economies worked out so well for soviet bloc. Sorry, the cold war did not create the conditions to 'propose' our capitalism it proved it. Its current form might be flawed (corporate bailouts, uneven distribution of wealth etc) but it's a far better model than planned economies comrade.
Some of you may be too young to remember the good old, bad old days of the Cold War, but one thing that was supposed to be anathema to Americans were "planned economies". It was proposed, mostly by corporate types and their supporters, that the US should not be a planned economy, it should be an economy like how the US is run - the majority stockholders of corporations make decisions about capital and production.
What happens when production decisions are not planned? There is a risk capital can be spent to create a product no one wants. Isn't that half the discussion on HN - minimal viable products, agile development, and other methods to try to avoid this? Why do the angels, VCs, and now blessed founders deserve so much money? Because they took on risk.
So the VCs tell us we should avoid planned economies and have an economy with risk - where capital is wasted on products no one wants. Then we're told they deserve all of this money because our economy has so much risk. It's a great tautology if you're willing to swallow it.