16 ideas from Marc Andreessen for a more dynamic US economy
AEIdeas
In a classic Marc Andreessen “tweetstorm,” the venture capitalist offers 16 “somewhat-less obvious ideas for how to expand the # of “unicorn” great tech startups over time.” (I have added a few links and a chart.)
Taken together, I think, Andreessen’s ideas point toward a more dynamic, competitively intense economy which (a) generates both more entrepreneurs and more creative and innovative workers with deep expertise, (b) provides easy and open access to ideas for entrepreneurs and low barriers to starting and growing their firms, (c) offers a safety net that encourages work and mobility and risk taking. In short, just the opposite of economic calcification. Andreessen:
1/More Montessori & Montessori-style, free-form, and/or project-based K-8 public & private schools.
2/Entrepreneurship magnet/charter schools — specifically designed to produce entrepreneurs, vs cogs in the industrial machine.
3/Significantly expanded summer tech, science, math, entrepreneurship programs/camps for grades 5-12.
4/Significantly expanded internship programs at tech companies of all sizes for both high school and college students.
5/More interdisciplinary college programs — particularly engineering + business, and liberal arts + engineering.
6/Comprehensive inclusion programs for underrepresented groups for each of the preceding five ideas.
7/More public research universities should pursue the Stanford/Berkeley mentality/model; also, repeal Bayh-Dole.
8/Comprehensive legal and regulatory reform to open access to federally-funded research; also, pass Aaron’s Law.
9/Reform, or better yet eliminate, software and business method patents. Redefine patent trolling as a form of felony extortion.
10/Fully portable economy-wide benefits, including health care, retirement savings, and immigration status.
11/Eliminate tax credits for home ownership, and implement tax credits for renters.
12/Implement tax credits for child care services for working parents.
13/”Opt in” innovation zones with regulatory relief for various categories of new technology.
14/More long-lockup capital at all levels of corporate capital structure.
15/Eliminate tax credits for corporate debt, and implement tax credits for corporate equity.
16/Zero capital gains tax for equity held for 5+ years, paid for by higher capital gains tax for equity held for <2 years.
Since he’s a VC it’s notable what he doesn’t list: looser capital raising rules, exempt from state law, that allow non-accredited investors, and more of them in a given deal, to get in on the private equity game. The JOBS act didn’t do it because the SEC, as usual, is hostile to private equity and always implements rules to hobble it.
Some good ideas. Few of them would ever be considered by the GOP however.
His strong focus on early entrepreneurial and STEM and critical thinking is the only way we can resolve the minority and women in technology issue. Even if he did not mention those two issues simply educating in these areas from the begining will bring more of those underrepresented populations in. Of course having special focus to try to interest these populations would do even more. He does have refreshing ideas on tax credits and I see how they could stimulate the economy. Great points all!
“having special focus to try to interest these populations would do even more.”
No, it wouldn’t. When I started in chemical engineering in 1991, it was the beginning of the “OMG we must have more women in engineering because sexism” fad. When I returned in 2004 to upgrade my degree, after thirteen years of special scholarships, mentorship programs, outreach, sending female fourth-year students into high schools to preach the gospel…the ratio of female to male undergrads in engineering has steadily trended *down* in all the engineering faculties. Worse, the women-only scholarship recipients overwhelmingly take up slots in a limited space program and either flunk out in first year or transfer as soon as the scholarship money runs out. Of the fourteen women in my first year engineering class, three graduated, from an engineering school that boasts a 90%+ graduation rate.
Eliminate corporate income tax. It is no more than a collection mechanism on a corporation’s customers. It favors behemoths who generally pay little and whose economies of scale are found in accounting,legal and lobbying, not in operations.
1-4 – Vouchers for everyone. 85% of all K-12 and colleges are government-union operations. To innovate, let folks take the money out into the marketplace.
Boris has it right. The ideas are interesting and we know the socialist Dems would hate all of them and the wussy, cowardly GOP can’t even agree on taxes. It is a shame that our economy is owned now by the Chi-coms and others who love Bama’s drive to push the USA into a 3rd world state. No one by the time that occurs will have any guts to pass any economic reform. And as long as Blue State moral idiots keep electing Dems, the Electoral College will elect….a lib Dem for POTUS. The end is …really coming.