"startups" are not the economy. A startup is barely a real business, so let's not get to hung up on the effect that labour laws have the questionable benefit startups bring to Real Life (tm).
Now US employment law might help startups grow quickly, but the flip side is uncertainty and insecurity for millions of employees in all walks of life. That's your trade off, and you have to get out of the startup bubble world if you really think it's worth it.
New Zealand and Australia also have relatively strong (compared the the US) labour protection laws, and unemployment remains low. Yes, companies need to be more careful when planning, but they are able to lay off staff when the business is suffering, without compromising the protection of employees to spurious dismissal.
Now US employment law might help startups grow quickly, but the flip side is uncertainty and insecurity for millions of employees in all walks of life. That's your trade off, and you have to get out of the startup bubble world if you really think it's worth it.
New Zealand and Australia also have relatively strong (compared the the US) labour protection laws, and unemployment remains low. Yes, companies need to be more careful when planning, but they are able to lay off staff when the business is suffering, without compromising the protection of employees to spurious dismissal.