Thursday, July 25, 2013

Inequality is good?

So says the Economist, at least when it comes to fostering entrepreneurship.  Rather than promoting particular types of industries or clusters (e.g., biotech), politicians should:

  • remove barriers to entry, and growth, for all sorts of business; and 
  • recognizee the importance of the profit motive.  The chance of making big money is what drives people to take huge risks and endure years of hardship.

Finally, Politicians and bureaucrats often fail to recognize that entrepreneurial success entails things that "set their teeth on edge."

Entrepreneurs thrive on inequality: the fabulous wealth they generate in America makes the country more unequal. They also thrive on disruption, which creates losers as well as winners. 

Does the US tolerance for inequality drive our growth?

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