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> How many new technology companies did not get created because people's depressed salaries reduced how much they could save to bootstrap something new? I agre
by frostmatthew 12y ago
> How many new technology companies did not get created because people's depressed salaries reduced how much they could save to bootstrap something new?
I agree with everything else you're saying except this. Higher wages could also cause less people to consider founding a startup.
True, higher pay would allow people to save more and thus making it financially easier - but it also would mean a higher opportunity cost [for the same risk], making it psychologically more difficult.
- billyhoffman 12y agoGood point. There also is the case that a lower salary might make the person more likely to try side products to supplement income. Perhaps my original thought here was a reach.
- mfisher87 12y agoWe're talking about physical barriers to entry. Without the money, you can't start the business. If you have the finance, but with a higher opportunity cost, you are still able.