I guess the question for society is: do we want businesses who cannot pay domestic workers a fair wage to exist in our country? Or do we want them to exist elsewhere and we import those products?

To society a startup with a 99%% chance of failing to IPO is no different from a sweatshop which also wants skilled but cheap labor.

The problem with the latter is then you have no control over how the clothes/software are made. This is the problem the EU is now encountering - all the best software is made by US companies, but it's now tainted by sovereign risk.