Comment by enejej
6 hours ago
I’m not all that convinced on the regulation part.
Ultimately it’s all about investing money to create real assets that generate cash flows. One can side step regulations to some extent whilst developing a product (nobody cares/notices until you are actually growing fast) and then deal with regulations later. Uber already showed this and the leading AI firms are following the same act - having ripped off a lot of content but nobody threw a fit until a legit asset came out of it.
Yes, let's ignore regulations that provide people with stable jobs, societies, and countries. Afterall what good is democracy when the alternative is making more money?
A lot of these are mostly well-meaning but have backfired. The only way an international business is going to consider investing in French workers, for example, is with relatively low salaries to offset the inability to fire them.
It's counterintuitive but if you allow "failing fast", you lower risk of new engagements, and this allows for more speculative bets on ideas and people.
Make it difficult to evict tenants? Expect more stringent requirements from landlords
Enact rent control? Initial rents are going up, new builds are are disincentivized.
Strong worker protection? Expect fewer highly paid roles (wage compression)
I'm not saying these regulations are unilaterally bad - I'm saying don't be surprised that there are 2nd-order effects that are arguably just as bad, if not worse.
This is something you talk to people about that are in the western world but outside of the US (which includes me) but whenever I have the conversation people just can't grasp it.
The US, by having bad worker protections and privacy abusing tech companies, etc. have been able to pave the way for extreme amounts of innovation that just wouldn't happen anywhere else. The rest of the world then effectively has innovation subsidized since they import the finished product.
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You can not regulate either of the above into existence. What good are rhetorical questions when they are nonsensical?
No one is saying "ignore regulations". The US has regulations also. Every country does.
The EU has taken it to another level.
People like you only realise how life actually works too late in life.
Makes sense. You’re saying why would regulations matter when clearly they can just be ignored.
For venture ultimately it’s a soulless moneyman’s game. Really they have to pick winners, and anybody can look at the landscape and see there’s just not gonna be a Pierre Zuckerberg or a Klaus Kalanick. And if there ever is, he’ll need to raise lots of money anyway, which would come from venture.