Countless academic papers, books, articles and posts have answered questions about the emergence of startup hubs. I don’t want to reinvent the wheel. Instead, I want to specifically explore why there was basically no startup scene in Chicago pre-2008 and why everyone and their mother wants to be an entrepreneur 5 years later.

1. Healthcare
Before Obamacare, upon graduation you needed a job so you could get health insurance. Post-Obamacare, you can now stay on your parent’s health insurance until you are 26, which means you have 3-5 years after college to work on a startup with worrying about getting a “real job.” Look around any co-working space or startup incubator. I bet most people are under 26, and if they aren’t they’re married. Basically, health care policy reduced the opportunity cost of starting a company.

2. Economy
If you were in college in the early to mid 2000s, you went to work on Wall Street. By the late 2000s, your friends on Wall Street were out of a job. Meanwhile, this guy your age named Mark Zuckerberg built a website out of his dorm room, made billions, became a celebrity entrepreneur, and you think you can too just because you use Facebook. Basically, because the $100,000 job out of school isn’t a sure thing anymore, the opportunity cost of starting a company is lower. Also, salaries for talented programmers with some experience are perhaps comparable, so why buy fancy suits if you can wear your hoodie to work?

3. Expenses
You can basically start a company for free, or close to it. Google Apps + WordPress + Crowdfunding + Template For Everything + Crowdsourcing + other tips and tricks basically means you can start a company for next to nothing. Why slave away in an entry level job when you can be “Founder & CEO” by building an app or starting a website?

Don’t believe me? Look at Israel: National health insurance, relatively low salaries, and a culture where people live at home until their late 20s and it is the #2 startup capital in the world.

Sure, universities, government support, previous success, events, co-working space, programmers, investors and more all help. I just wanted to point out two things I think people really overlook.