> bad treasury management
There are lots of ways for a startup to die. If you have $2m cash do you really want to manage (2/0.25) bank accounts, adopt all that administrative overhead, just to reduce your probability of death by bank failure, when possibly the added overhead may increase your overall probability of death because now you are distracted and unfocused on the things that are far more likely to kill you?
> If we're going to spend billions of dollars on improving the safety net, I think startups are way, way down the list of priorities.
This is first order thinking which increases systemic risk by undermining trust. The probability of future bank runs goes up.
> Three, among startups, market-driven disruption is practically a religion. Startups destroy existing companies all the time. Quite often it's an explicit goal, where startup X lists existing players A and B as companies whose lunches will get eaten because they are making bad choices. > Four, there has been endless puffery and chest-thumping among VCs and tech startups how their genius justifies pocketing billions and billions of dollars when times are good. Best and brightest, incredibly hard workers, blah blah blah. Including a special tax exemption for VCs, because they're just such amazing financial wizards.
You're making broad generalizations about a large group of heterogeneous agents. You're also using language that's full of moral judgement (revenge, disgust) instead of focusing on stuff that matters to the economy or to everyday people.
> But it's not a problem for taxpayers to solve.
Why not? Taxpayers exist to fund things that are thought to be in the public good. And isn't it a lack of imagination to think that taxpayers are the only way to solve this? What about clawback of executive compensation or shareholder dividends?