Sure, because nobody has ever taken a loan to start a business before. And VC funding doesn't exist. And mortgages are a falsehood. And companies are never bootstrapped either.
I guess eventually owning a factory is just impossible right?
Yeah and I could become a rock star if I started playing the guitar.
Getting loans is hard, especially if you're one of the working poor. Starting a company that doesn't die after a few years is harder. When you're one of the 40% of Americans who can't cover an unexpected $400 expense, if you company fails you're fucked. The social safety net in the US is a joke.
Yes, it's a trade-off. Less regulation and more freedom and flexibility at the cost of more social risk and personal responsibility. That's the American way.
I was simply stating that truth, not defending it nor saying other realities can't exist. But there is always a trade-off. What part of that is so controversial?
Perhaps things have changed and the balance needs to be shifted now. That's a great discussion to have, but let's actually have a discussion then.
It is easier to start and grow a business when there are less regulations around employees. Every employee in America is also free to walk away from their job without any notice. These are both facts and have allowed for vast commercial growth and innovation in America (and in countries with similar setups).
Whether you (can) take advantage is completely orthogonal to the original question of why the USA is "an aberration in this regard", and I would rather not devolve into yet another rehash about fairness and opportunity.
maybe the reason why so many want to start they own business is because u can get fired for no reason. being it's own boss gives you at least the freedom to not always live in fear of being fired if you do something that the company does not want, like getting pregnant, i have read enough stores of companies firing pregnant women and i cannot believe it's legal to happen.
in europe at least that part is gone, you start your own company not out of necessity but out of motivation.
Do you think it's easier to start a company and that is has less risk than just finding another job? Also have you seen the world-leading benefits at places like Google?
America just chooses more freedom than government mandated security. There's some slight trade-off but it is nowhere near as problematic as media makes it seem.
"Just buy your own factory" as a response to the power imbalance between the workers and the owners of the means of production is the controversial statement.
The actual quote is "nobody is stopping you" - because that imbalance means it's easier for you to also own the means of production. It's unequivocally true, and enjoyed by 10s of millions of small business owners and entrepreneurs which form the heart of the American middle class. It answers the why posed by the GP.
But yes, different places are different and life isn't fair. No need to cutoff any discussion of various economic systems and environments for the same basic retorts.
No, the imbalance doesn't make it easier for you to own the means of production at all. On the contrary, it allows for systemic exploitation that makes social mobility harder and increases the wealth imbalance over time.
Depending on your target industry, "a factory" can be as simple as some old yet reliable drill presses and lathes, and then hiring a machinist or two. How is the flexibility to do this "controversial"?
https://youtu.be/xXze8_SzW28?t=431 <---Granted he's got Youtuber money and other gun-sales related money to help, but the concept is the same....he's bootstrapping a factory after purchasing the relevant capital infrastructure using his own money.
> Granted he's got Youtuber money and other gun-sales related money to help
This is the difference. Most Americans don't have access to this capital, or access to means of borrowing this capital, and if they do have the means then they might not necessarily be able to shoulder the risk.
It's not like the capital just fell into his lap from a friendly Wall Street banker. Those businesses are ALSO self-started (to the best of my knowledge), especially his Youtube success. He's a prime example of someone working hard, spending less than they earn, accumulating resources, and then expanding that into ownership of the means of production as well as employing others.
It's not for everyone. Sure, most people have no appetite for the level of risk involved even if they can scrape together the money to buy some revenue-generating asset (I know a guy who left the Marine Corps as a truck driver...moved back to Japan, bought a truck, and then opened a moving company). Most people don't have access to capital....nor will most people ever have the intellect to write tight software code, no matter how many government-backed Code Bootcamp Initiatives there are.
To bring this back to the original point though, telling someone to bootstrap a factory, which is demonstrably doable in the American economy even today (for flexible definitions of "factory"), shouldn't ever be a "controversial" piece of advice. Especially on an pro-entrepreneurship site like YC/HN.
You don't. You start small and work you way up while offering whatever collateral you can until you get that big loan. Save up earnings and use a downpayment or buy insurance. That's how business growth works.
There are 10s of millions of business owners in America. Ask any of them how they did it.
