I'm in the process of reading _Why Nation Fails_. The central thesis is that the rich and poor countries are separated by inclusive vs extractive institutions. The extractive institutions are characterised by elites that attempt to defend their own wealth and status by maintaining the status quo and resisting the creative destruction that may threaten that position. It seems to resonate a bit here, when Marc speaks o…
Answer is pretty easy. People are assholes. Those rules and regulatory frameworks exist for a reason, and with something like health insurance you don’t see better outcomes in states with lower regulatory burden. Same with the financial burdens that companies cry about. Enron, GlobalCrossing, etc all demonstrated that corporate governance required the federal stick to behave. Anderseen’s article is pretty lame with r…
It’s Time to Build
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Re: It’s Time to Build
#292I'm in the process of reading _Why Nation Fails_. The central thesis is that the rich and poor countries are separated by inclusive vs extractive institutions. The extractive institutions are characterised by elites that attempt to defend their own wealth and status by maintaining the status quo and resisting the creative destruction that may threaten that position. It seems to resonate a bit here, when Marc speaks o…
Answer is pretty easy. People are assholes. Those rules and regulatory frameworks exist for a reason, and with something like health insurance you don’t see better outcomes in states with lower regulatory burden. Same with the financial burdens that companies cry about. Enron, GlobalCrossing, etc all demonstrated that corporate governance required the federal stick to behave. Anderseen’s article is pretty lame with r…
Yes, please demand more laws. Please ask Washington to centralize and increase its power. It's not that your motivation is wrong, its just that I own the institution.
Re: It’s Time to Build
#293I find this essay to be extremely frustrating, and a good example of the attitude I've personally witnessed Andreessen have in the few interactions I've had with him directly. > Is the problem capitalism? I’m with Nicholas Stern when he says that capitalism is how we take care of people we don’t know — all of these fields are highly lucrative already and should be prime stomping grounds for capitalist investment, goo…
If you don’t mind me asking, what radio group are you involved with? I’m been working on some tangentially related projects and would love to be involved. Apologies for the new HN account, lost my password for my main one somehow.
Re: It’s Time to Build
#294Earlier quoted context omitted.
I'm confused why you think a VC who generally won't see returns on a good investment for a decade or so thinks that "value lies in quarterly profits."
Having been through the VC wringer I don't think you can be unprofitable for a decade.
Long term un-profitable venture backed software companies are practically a cliche at this point.
Re: It’s Time to Build
#295If we didn't have unlimited travel across borders this epidemic would have never happened. Absolutely nothing would need to be built to achieve this.
Re: It’s Time to Build
#296I'm in the process of reading _Why Nation Fails_. The central thesis is that the rich and poor countries are separated by inclusive vs extractive institutions. The extractive institutions are characterised by elites that attempt to defend their own wealth and status by maintaining the status quo and resisting the creative destruction that may threaten that position. It seems to resonate a bit here, when Marc speaks o…
Point being, why not write simpler laws and regulations and leave it to the courts to interpret what adheres to the spirit of it? With the barriers of entry gone, I think we'd see a renewed vitality to many ossified sectors. I agree with your overall point, but you have the regulatory differences between the US and Europe exactly backwards. Europe (excluding England somewhat) has a statutory legal system. Things are…
Re: It’s Time to Build
#297This is like saying we need to want to end poverty more than we want to prevent ending poverty. No one is for poverty, but very few people are against it enough to give up their money, power, or time. We need to want these things enough to make sacrifices
> We need to break the rapidly escalating price curves for housing, education, and healthcare
Most of the problems he mentions stem from government. Our government is legacy software and the author is right that lodged deep within the spaghetti code are leeches who benefit from the current system and fight against change. But they aren't the biggest problem...
Billions of dollars are spent lobbying and the % of that money that is spent pushing for causes like better healthcare or education for everyone is infinitesimally small compared to what's spent lobbying for changes that'll benefit a few at the expense of the many. But this isn't the biggest problem either...
The problem is that the infrastructure that powers our democracy -- the stuff and rules that exist to enable the people to exercise their authority -- is eroding. I asked my grandparents if people always felt like their government was incompetent. To my surprise, they said that when they were young most Americans were proud of the government.
What's the solution? The idea of democracy isn't broken, but our current implementation is. We need an upgraded democracy the way Wikipedia upgraded our old encyclopedias or Amazon upgraded commerce. These aren't new ideas, they're simply new implementations using new tools. Technology is transforming everything around us but our government is stuck in 1776.
You know what the right and left have in common? We all know things could and should be better, but they aren't. Right now we're pointing fingers at the other side, but eventually we'll realize the machine is broken. When enough people feel this way, change will come, and it will come from the bottom up. But it's not as simple as just wanting change as Marc suggests...
First, people need to get angry enough to do something. In retrospect, change seems obvious, but looking forward it's risky. People have to lose a lot in order to put their time, money, and future on the line to fight for something that might not work, and this is hardest for the people who are the worst off in society and most need change to happen.
Second, people will vote for increasingly extreme candidates to try and change the system from within. This will result in incremental change, but it won't reform the system.
Third, a new system will emerge in parallel to our current government. If history is any predictor of the future, this is almost guaranteed to happen eventually. I have no idea what the new system will look like or when it'll emerge, but this is the type of thing we need to build. In fact, I wouldn't be surprised if someone is building it already and we just haven't realized it yet.
Re: It’s Time to Build
#298I find this essay to be extremely frustrating, and a good example of the attitude I've personally witnessed Andreessen have in the few interactions I've had with him directly. > Is the problem capitalism? I’m with Nicholas Stern when he says that capitalism is how we take care of people we don’t know — all of these fields are highly lucrative already and should be prime stomping grounds for capitalist investment, goo…
It's like it was written to be the perfect example of SV myopia for the rest of the world. Some examples:
>Even private universities like Harvard are lavished with public funding; why can’t 100,000 or 1 million students a year attend Harvard?
Because the main purpose of Harvard and other elite schools like it is to pick out the best ~18 year olds and set them on the course to be leaders in business, government, law, and other areas. Harvard isn't Harvard because they're better at education. Harvard is Harvard because they get the pick of the litter. Extending their enrollment to a million doesn't mean we get a million more elites.
The funny thing is that we basically do have the education system he asks for in some places. For example, half of medical students attend lectures rarely or never instead opting for online resources. But they still plunk down 100k for those two years because the knowledge is worthless without the credential. (And years 1/2 are the gate way to the clinical education in years 3/4 that must happen in person).
Go look at the a16z team. How many of them don't have a Harvard/Yale/Princeton/Stanford/et al type pedigree? So to answer his own question, people like him are the reason why 1 million students a year can't attend those types of places. Otherwise, their graduates wouldn't be as attractive to people like him.
>Why aren’t we building Elon Musk’s “alien dreadnoughts” — giant, gleaming, state of the art factories producing every conceivable kind of product, at the highest possible quality and lowest possible cost — all throughout our country
Because there's no magic factory you can build to make every conceivable product cheaply. Obviously we don't do it because it's cheaper/more efficient to produce stuff in single purpose factories. Contrary to his argument, we wouldn't get richer by manufacturing more stuff. We'd get poorer.
>You see it in transportation. Where are the supersonic aircraft? Where are the millions of delivery drones? Where are the high speed trains, the soaring monorails, the hyperloops, and yes, the flying cars?
Because none of this stuff is economically or physically practical. He seems to want us to live in a science fiction fantasy world.
Re: It’s Time to Build
#299I find this essay to be extremely frustrating, and a good example of the attitude I've personally witnessed Andreessen have in the few interactions I've had with him directly. > Is the problem capitalism? I’m with Nicholas Stern when he says that capitalism is how we take care of people we don’t know — all of these fields are highly lucrative already and should be prime stomping grounds for capitalist investment, goo…
Marc Andreessen and Andreessen Horowitz and other venture capitalists don't have a monopoly over the future (or current) direction of our society). Hell, they don't even have a plurality of control.
The things that Marc speaks of in this article that are fundamentally broken in the US are housing, education, and healthcare. I see new startups funded in the US every single week that attempt to solve these problems. In the end, though, they are bound by the regulatory constraints that American government imposes on them, and in these three areas, there is a patchwork of laws that is impossible to navigate if you wish to build anything meaningfully transformative. It is simply impossible for Marc Andreessen to deploy capital in a way that can accelerate the pace of housing development in San Francisco, or accelerate the pace of drug development in the US, or make public American high schools have a lower student-faculty ratio. The amount of regulatory capture in these long-running, slow-moving institutions is simply too high.
Re: It’s Time to Build
#300Earlier quoted context omitted.
Point being, why not write simpler laws and regulations and leave it to the courts to interpret what adheres to the spirit of it? With the barriers of entry gone, I think we'd see a renewed vitality to many ossified sectors. I agree with your overall point, but you have the regulatory differences between the US and Europe exactly backwards. Europe (excluding England somewhat) has a statutory legal system. Things are…
I may not have expressed that point very well, but it seems like the common law system would encourage less explicit regulation rather than more, so that seems like a bit of a contradiction. Does the need for more litigation drive a desire to be more explicit in how statues are written?