[shareme]

Its more complex than you give credit for..

And it snot just a USA trend..Europe faces this as well..

Basically, industries went horizontal rather than continue vertical integration. Horizontal promotes outsourcing whereas vertical does not.

Look at SpaceX as an example of vertical integration delivering lower costs satellite payload flights than NASA contractors with USA workers. Note you could replace USA with Europe, India, Russia, etc.

But we are facing a business culture fallacy and change setup. Its not gov policy as that will always be somewhat broken. Its business culture that needs to change and we as startup people have the power to change it.

When is the last time any YCombinator company submitted a startup idea whereas it was vertically integrated rather than horizontal?