As someone who started a company and failed, I can attest to the power of a safety net. I relied heavily on family when I was picking up the pieces, and I was acutely aware of my good fortune of having that backstop. Without it I would have literally been destitute. So many people don't have a family safety net to fall back on, and those people are basically foreclosed from taking a big risk like starting a company without risking being homeless and bankrupt.
Consider wealthy ivy-leaguers: Bill Gates and Mark Z's backstop was to go back to Harvard and probably get some support from their upper middle class families. Their plan B was way better than most people's plan A. I'd argue that they had comparatively little risk when starting out.
I don't see it as a government bail-out, but as a way to enable a whole swath of the population to take risks that they cannot otherwise. Something as simple as healthcare would make a huge difference for many people.
Consider wealthy ivy-leaguers: Bill Gates and Mark Z's backstop was to go back to Harvard and probably get some support from their upper middle class families. Their plan B was way better than most people's plan A. I'd argue that they had comparatively little risk when starting out.
I don't see it as a government bail-out, but as a way to enable a whole swath of the population to take risks that they cannot otherwise. Something as simple as healthcare would make a huge difference for many people.