Agree I was very surprised by Grahams’ essay. It seemed mainly to involve itself with attacking strawmen. As someone who believes in low levels of inequality I would certainly never advocate for the abolishment of inequality all together. That would be absolutely crazy.
Graham seems to assume that what he is doing in Silicon Valley is somehow the most representative thing happening in the new economy. But present day inequality in America is hardly a result from a successfull Silicon Valley startup culture.
Stagnant workers wages, despite productivity increases, balooning CEO salaries, a financial sector which takes ever larger chunks of the economy is hardly the result of Silicon Valley startups.
Inequality isn’t anything new. That has been happening long before Silicon Valley. The factors that contribute to inequality today are hardly unique or new.
I am also surprised that Graham spares so little thought to the potential negative consequences of high inequality, especially for the startup culture. Thomas Picketty address many of these problems. With very high levels of inequality wealth inheritance will increasinly dominate the economy at the expense of ability. With very large accumulated fortunes understanding the marriage game will be a far more important skill in getting rich than understanding business.
But perhaps more importantly large levels of inequality invariably leads to high levels of instability. This risks undermining the whole capitalistic system itself.