This is the result of the "Peltzman effect" or "risk compensation." If you make it so that failure does not sting so much, people take more risks. Bad for car s

This is the result of the "Peltzman effect" or "risk compensation." If you make it so that failure does not sting so much, people take more risks. Bad for car safety, but great for business creation. We've long had a schizophrenic relationship with business creation in this country. We lionize it. We glorify it. However, we also require people who do not already have plenty of money / family backing to potentially put everything on the line for it. It's where our love of business crashes head first into our "dog eat dog, every man for himself, lift yourself up by your bootstraps, everything that happens to you is your own fault" ideology. We say "you can do anything if you try!", but then also tell you "but you cannot afford to risk it." If we combined the American culture of entrepreneurialism and free enterprise with Denmark's level of safety nets and free higher education, we could probably do a lot more amazing things than we are now. There are likely plenty of people who could make brilliant contributions (to business, technology, art, science, etc.), but are forced to take what they perceive to be the least risky path in their lives, and so never even attempt to get off the ground with their ideas. That's just sad. http://angrybearblog.com/2012/01/peltzman-effect-why-economic-growth-has.html http://angrybearblog.com/2012/01/peltzman-effect-why-economi...