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The VC market expands and contracts like any other following the principles of economics. Therefore, the fact that the production possibilities frontier (is the
by Denzel 9y ago
The VC market expands and contracts like any other following the principles of economics. Therefore, the fact that the production possibilities frontier (is there a better term for a money market?) can move outward shows it is not zero-sum. In simple terms, as time goes forward, more and more resources can be created and injected into the market unlike a truly scare resource.
- chrischen 9y agoHe said "zero-sum in a way" and that is true. At any given point in time it is zero sum, and for practical purposes you can approximate it as zero sum. To say that if i robbed all of silicon valley investors of their money and claim it won't affect the funding prospects of new startups would be a lie.
- Denzel 9y agoEverything is zero-sum at an instant of time... I figured that was obvious enough that I didn't have to say it. If you want to approximate it as zero-sum, be my guest. It's a functionally useless approximation.