Usually pg's essays are spot-on. But this one, I feel, is based on a false premise: People aren't upset about startup founders getting rich -- in fact, society loudly applauds it. What people are upset about is legacy capital growing and growing and growing while the poor and middle class stagnate or even contract.
On this subject, I always think about farms.
Back in the day, it took ~100 people to work a large farm. Now it takes one (or a few) guy(s) with some machinery. All those farm workers aren't now out on the beach somewhere -- they've migrated to the city to drive cabs, etc. The wealth generated by this astounding leap of productivity went entirely to the shareholders of the John Deere corporation. (edit: Yes, cheaper food benefits everyone. I meant the share of the revenue generated by the farm going to its workers, vendors and shareholders. And the farm owners obviously benefited, too. Farmhands? Not so much.)
And that was great! Good for those speculators and innovators!
What I think most have a problem with is 7 generations later, the John Deere family (<-- edit:metaphor) still controls all that capital and pays taxes at 15% on capital gains while losing count of how many homes they own.
On this subject, I always think about farms.
Back in the day, it took ~100 people to work a large farm. Now it takes one (or a few) guy(s) with some machinery. All those farm workers aren't now out on the beach somewhere -- they've migrated to the city to drive cabs, etc. The wealth generated by this astounding leap of productivity went entirely to the shareholders of the John Deere corporation. (edit: Yes, cheaper food benefits everyone. I meant the share of the revenue generated by the farm going to its workers, vendors and shareholders. And the farm owners obviously benefited, too. Farmhands? Not so much.)
And that was great! Good for those speculators and innovators!
What I think most have a problem with is 7 generations later, the John Deere family (<-- edit:metaphor) still controls all that capital and pays taxes at 15% on capital gains while losing count of how many homes they own.