Inequality and Startups

One of the most interesting thinkers around -- Paul Graham -- has this essay explaining the connection between inequality and startups:

It sounds benevolent to say we ought to reduce economic inequality. When you phrase it that way, who can argue with you? Inequality has to be bad, right? It sounds a good deal less benevolent to say we ought to reduce the rate at which new companies are founded. And yet the one implies the other.