Recovery? What recovery?

Tyler nails it in today’s NYT’s column. Young people are taking it on the chin. Here’s the relevant¬†blogpost and chart from Marginal Revolution.

For those of us involved in higher education, these data are really disturbing. Tyler talks about some young folks “breaking out of the trap” through entrepreneurship (i.e. startups). Unfortunately, on a population basis, that doesn’t build a middle class. Harvard Business School’s Shikhar Gosh points out that 3 out 4 startups that take on venture capital fail (and those are the lucky ones that actually get funded). And with student debt at astronomical levels, new graduates can’t exactly max out their credit cards to get a business going.

Why Silicon Valley Works…

Hat tip to Tyler Cowen, here’s Paul Graham’s interesting idea: Graham starts from the notion that the default is for start-up hubs is failure, then he points to what makes the Valley a success. Money quote:

I think there are two components to the antidote: being in a place where startups are the cool thing to do, and chance meetings with people who can help you. And what drives them both is the number of startup people around you.

I was just mentioning to Tyler that perhaps the problem with DC is that here, the cool thing is a job from the Plum Book.