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This is really just another symptom of growing wealth inequality, which affects businesses just as it affects individuals. Qualified people are a finite resourc
by vannevar 10y ago
This is really just another symptom of growing wealth inequality, which affects businesses just as it affects individuals. Qualified people are a finite resource, and consequently, the greater the wealth gap between the richest companies and cash-strapped startups, the smaller the share of talent that startups will be able to recruit. This in turn will take competitive pressure off the richest players, enabling them to widen the gap even further. Contrary to popular belief, there is no 'invisible hand' that acts to counter this feedback loop. Just envisioning how to build a more valuable business is no solution, because if you cannot access the capital or personnel needed to bridge the gap to profitability, your vision will not matter. As time goes on, a smaller and smaller portion of the population will be wealthy enough to bridge that gap, even as overall average wealth increases.
It's true that startups have always had to deal with better funded competitors that could pay more. But what you're not accounting for is that that gap is increasing over time, and there is a point where the lead becomes insurmountable.