Improving entrepreneurship by

Improving entrepreneurship by ... improving social welfare?

In summary, some new analysis demonstrates that when people know that there's a social safety net there to catch them if their attempt to start a new business fails, people start more new businesses. The same is true when bankruptcy laws are more lenient.

If true, that would indicate that screwing down on bankruptcy laws and getting rid of welfare programs, both conservative ideals (so as to reduce the "moral hazard" of "dependency") may have an opposite effect of what they want to see happen: people taking risks to create new businesses and innovate, cornerstones of American economic freedom, as Ronald Reagan himself boasted.