A serious problem with this thesis is that in addition to making good profitable startups easier, a strong safety net makes many other competing activities easier, too.
One of those competing activities is: bad startups.
When we accept the premise that "promoting startups" is a good thing, we are assuming such startups are still a net social positive. In fact, that quality may depend on them failing-fast, attracting investment from greedy investors, and generating enough income in a competitive market to sustain the founders/employees.
With a strong safety net, it is easier to pursue a money-losing, wealth-destroying startup indefinitely -- really just a hobby masquerading as a startup.
A strong safety net also makes it easier to be a painter, or a musician, or a writer... even if there's no paying audience for your work. Perhaps some who do startups now would, with a bottomless safety net, prefer to sit in a cafe all day sipping coffee, blogging, and posting snarky comments about real startups. "That seems easier."
A "strong safety net", if done right (his minimum income suggestion is a bad idea in more than one way), doesn't mean people can just keep going forever. They can still fail, and fail fast, just that some of the "black swan" type risks with disproportionate downsides aren't a worry. Risk/reward calculations should be about looking at foregone opportunity costs (which are certainly significant for most capable hackers) rather than at "oh ####, my daughter needs an operation, and there's a problem with the insurance".
One of those competing activities is: bad startups.
When we accept the premise that "promoting startups" is a good thing, we are assuming such startups are still a net social positive. In fact, that quality may depend on them failing-fast, attracting investment from greedy investors, and generating enough income in a competitive market to sustain the founders/employees.
With a strong safety net, it is easier to pursue a money-losing, wealth-destroying startup indefinitely -- really just a hobby masquerading as a startup.
A strong safety net also makes it easier to be a painter, or a musician, or a writer... even if there's no paying audience for your work. Perhaps some who do startups now would, with a bottomless safety net, prefer to sit in a cafe all day sipping coffee, blogging, and posting snarky comments about real startups. "That seems easier."