So the general idea is that lack of scalability within a domain is a barrier to entry? If so, then the real barrier to entry is finding the domain, not the actual schlep - big companies can schlep pretty well, right?
Exactly - wages do rise with inflation, but as we know from intro macro, there's always a bit of a delay due to contracts etc. The problem with inflation is it drives people even further up the risk curve to find yield.
The other problem is that while inflation incentivizes moving up the risk curve, capital gains work in the opposite direction, incentivizing idle cash balances. One side of the government wants you find yield, the other punishes you for finding that yield.
At the end of the day, you're just going to make people find that yield (they have to) and you won't increase tax revenue. People can stomach _some_ risk, but not an infinite amount (especially the institutional guys).
Pretty dope though, that from top=>tilt fall was pretty exciting