"But do we as a society want individuals taking on that much risk? If not, how can we insure against that risk?" We insure against it by making sure there is a

"But do we as a society want individuals taking on that much risk? If not, how can we insure against that risk?" We insure against it by making sure there is always an alternative job they can go to in the local area paying the living wage. A Job Guarantee. Then people are encouraged to have a go and take the risk since there is little to lose. The Job Guarantee can be calibrated so that it will pay people setting up businesses their wage for a few months so they can get established - and they have access to that service once every, say, five years to stop Phoenix operations. And of course having access to an alternative job paying the living wage means businesses have to pay the living wage to get any labour - and set their hours accordingly. No more trying to squeeze out profits by exploiting staff. Instead only businesses with genuine value add survive. Having a powerful Federal automatic stabiliser isn't just good for the demand level in the economy. It ensures that bad businesses die, and the good ones survive. Just like thinning a forest.