Comment Ordinary Americans Shouldn't be Allowed to Invest (Score 1) 182
Until Americans get much, much better at basic mathematics and risk management in general, it is foolish to allow the average person to invest in a venture capital manner -- and history is a guide as too why.
During the years 2000 - 2007 millions upon millions of Americans took out first, second, and third mortgages to invest in real estate -- a tangible product that historically is a good investment. They all signed loan documents containing something called "The Truth in Lending Act" disclosure that says in very clear, very understandable terms "You are being loaned money at 1-2%. Your interest rate can eventually increase to 7-8%. This loan may cost you WAY more than you can ever afford to repay." Everyone who signed a loan document during those years saw that document, saw the possibility that they could get screwed, and said "I'm going to get rich".
When the bottom of the market fell out people didn't blame themselves for ignoring the Truth in Lending Act disclosure. They didn't blame themselves for ignoring the mathematics behind interest rates and monthly payments. They didn't blame themselves for not having money management skills and avoiding overextending themselves. Instead they blamed the bankers and society in general. Way easier.
If the average person is allowed to invest in venture capital schemes then a lot of them are going to lose their asses because most businesses don't work out. Until we live in a society where it is no longer OK to say things like "I just don't understand math" then it is not OK to allow those same people to risk their savings on long shot gambles. Because, as we have already seen, society will inevitably have to bail those same people out when things go bad.