Shervin Pishevar says U.S. needs to make tough choices, cut fat

Shervin Pishevar is one of the most successful venture capitalists in the United States today. After having founded some of the most impressive companies in the tech sector, including Ionside, WebOS and Social Gaming Network, Shervin Pishevar went on to diversify into running his own investment fund. Known as Sherpa Capital, the organization has funded the initial growth of companies ranging from Uber to Virgin Hyperloop.

On his spare time, Shervin Pishevar also runs one of the most-followed Twitter feeds of anyone in the tech sector. With more than 100,000 followers, Shervin Pishevar has the attention of some of the most important figures in tech and business. Recently, he engaged in a nearly 24-hour tweet storm in which he explained his positions on a wide range of topics.

A major theme that coursed through the talking points in all of the tweets is Pishevar’s view that the United States in becoming less competitive across virtually every realm. He says that the country, as a whole, is going to eventually face a reckoning. It will either need to start trimming fat, doing away with its massive entitlement spending and, more broadly, the general sense of entitlement that is seemingly felt by so many of its citizens, particularly those who are not productive members of the private sector. Pishevar says that the United States has been enabling entire sectors to continue that would quickly collapse were they subjected to market forces.

And far from pointing the finger at disadvantaged and poor groups, Pishevar says that one of the biggest problems is the idle rich. Pishevar points to the medical industry in the United States, which currently consumes more than five times what it did in the 1970s as a percentage of GDP. He says that most of the increase in costs is effectively due to monopoly rents. This, he says, is completely unsustainable. The continued siphoning of productive capital into the pockets of monopolists and rent seekers, says Pishevar, could eventually cause the entire unstable edifice of the U.S. economy to collapse on itself. He hopes that a more orderly means of resetting the economy can be found.