Actually I was trying to use a coding analogy to explain to a technical audience. I apologise, should all future contributions be in the form of a mathematical proof? perhaps latin?
Seriously, you have no idea what an economy would do given different changes, as no one has tested it - we don't have any good[1] evidence for anything at all in the sphere of economics, except perhaps that people don't behave as economists model them.
As I said in my previous answer, different levels of risk are given different levels of reward already; changing the tax level of each won't make any difference, relatively speaking. (I won't bother explaining how VC funds spread risk to make it acceptable to lay-investors, because you doubtless already know.)
If markets are to be trusted for anything, putting correct prices on different levels of risky investment should be it. If not, as you say, no one would ever invest, and we would need to ask the government to run all our industries for us.
[1] from the point of view of physicists who actually care about uncertainty values.
Seriously, you have no idea what an economy would do given different changes, as no one has tested it - we don't have any good[1] evidence for anything at all in the sphere of economics, except perhaps that people don't behave as economists model them.
As I said in my previous answer, different levels of risk are given different levels of reward already; changing the tax level of each won't make any difference, relatively speaking. (I won't bother explaining how VC funds spread risk to make it acceptable to lay-investors, because you doubtless already know.)
If markets are to be trusted for anything, putting correct prices on different levels of risky investment should be it. If not, as you say, no one would ever invest, and we would need to ask the government to run all our industries for us.
[1] from the point of view of physicists who actually care about uncertainty values.