Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The Unexotic Underclass

miter.mit.edu

Post reply on HN
Print view View original

21–30 of 309 posts

Re: The Unexotic Underclass

#21

Post by 7Figures2Commas »

The "unexotic underclass" that the author refers to is already being served by a multitude of entrepreneurs and businesses. The degree to which it is served well varies considerably from demographic group to demographic group, geographic region to geographic region.

What the author apparently fails to recognize is that the biggest challenge for the entrepreneurs and businesses trying to serve her "unexotic underclass" is access to debt financing.

Venture capital is not appropriate for every type of venture. While there's a strong argument to be made that venture capitalists would be wise to make a conscious effort to give greater consideration to businesses run by and targeting people who don't look and live like they do, the reality is that the economic structure of venture capital is incompatible with the majority of businesses that require capital. Put simply, for every business for which equity financing is appropriate, there are probably a hundred or more for which it is not.

If the author wants to see more businesses serving the "unexotic underclass" and serving it well she should focus more on the market for debt financing and not the market for equity financing.

Re: The Unexotic Underclass

#23

Post by dasil003 »

peteretep wrote: post #20
3pt14159 wrote: post #17

Let's take a look at the real problems facing America and the rest of the developed world: 1. Mismanaged IT in critical infrastructure. 2. Misallocated funds in programs helping the destitute. 3. Cyclical loops of depression-lack of opportunity-lack of skill building. 4. Health disorders on a massive scale, like metabolic disorder, that can be solved with very simple things like diet and exercise. These places are no…

> They are mired in red tape and ignorance. So was provision of taxis

That flippancy cuts both ways.

The solution to the western diet is right there around the edges of the supermarket, and probably most people by now realize it's there, but they keep buying the flavor-enhanced processed grains because they taste good and are addicting. There is no red tape from people solving this problem for themselves, and that problem (#4 from pi) is about 10000 times greater than whatever problems people have or had with taxi provisioning.

Re: The Unexotic Underclass

#25

Post by idlewords »

7Figures2Commas wrote: post #21

The "unexotic underclass" that the author refers to is already being served by a multitude of entrepreneurs and businesses. The degree to which it is served well varies considerably from demographic group to demographic group, geographic region to geographic region. What the author apparently fails to recognize is that the biggest challenge for the entrepreneurs and businesses trying to serve her "unexotic underclass…

I would expand your argument to say there are more effective ways to serve the underclass than entrepreneurship.

Re: The Unexotic Underclass

#26

Post by incision »

patio11 wrote: post #15

I like parts of this article more than others. For example, while I share a certain sense of frustration that SV seems to spend a disproportionate amount of resources on mobifotosocialgames, smartphones and their downmarket progeny are an enormous quality-of-life improvement for broader America. There's virtually nothing a cash-poor-responsibility-rich person needs to do that having a smartphone does not make them be…

>'Commute to work? Apply for benefits? Schedule appointments with doctors? Successfully keep those appointments? Keep tabs on kids while working/errands? A smart phone makes you better.'

Spot on.

Years ago, I maintained a couple of desktops in a sort of 'job center' where people could submit electronic applications for various low-end, entry-level positions.

The most common issue - no email address. Second most common - has email, but has to take the bus to the library to check it.

Cheap smartphones have been a boon at that level. There's a whole segment of the population that was missing out on all the benefits of being connected until very recently.

Re: The Unexotic Underclass

#27

Post by gyardley »

Yes, somehow the vast majority of investors and entrepreneurs out there have continually overlooked this truly great area of opportunity.

That's totally the most plausible explanation here - certainly more plausible than 'this market isn't being served because serving it is largely a sucker's bet.'

Re: The Unexotic Underclass

#28

Post by johngalt »

Afforess wrote: post #7

Maybe I lack vision - but I don't see how any of the problems of the white collar and working poor can be solved by Silicon Valley. It would be impossible for a startup to work with the government in processing Veterns claims, for example. The regulations barriers are immense and the security and compliance problems are legion. Similarly, how are startups supposed to improve the earning potentials of the working poor…

Domain specific knowledge would help. Find a vet that landed on their feet and ask what worked. Talk to a few people inside the VA and figure out what makes claims go faster vs slower. There are businesses that exist today where their sole revenue stream is providing accurate and up to date court forms.

To think that technology can't help the poor or unskilled is ignorant of history. The assembly line was a means to use unskilled labor to produce a skilled piece of work. Same reason you can have bankers who can't calculate an amortization by hand.

Articles like this one paint the situation as a moral imperative, but its actually an opportunity. If you can design a tool to make people at the margins more valuable or competitive, you'll be able to capture some of that value as well.

Re: The Unexotic Underclass

#29

Post by burgers »

I can sum this up so very simply. The way to make the most money is to get as close to money as possible. Hence why finance is such a lucrative career. We are seeing the obvious flaws of capitalism now that capital is no longer tied to low skill labor for manufacturing.

Want to make a ton of money 1 year from today and have good credit? Spend your days with an MLS subscription finding under-priced homes to flip in a couple weeks. You'll be a millionaire in a year I guarantee it.

Want to help single mothers for the rest of you life? You'll barely get by, I guarantee it.

Why? Because its further from a transaction. Nothing more, nothing less.

EDIT: I'd love it if the person who down voted me would explain why so much money is flowing into blockchains. You don't think that has anything to do with how close it is to the transaction?

Post reply on HN