Mid-level capitalism, that is to say, small and medium sized businesses, are a huge employment driver. Growth and investment of existing business is also heavily dependent upon access to reasonably priced capital. We need to remember that wealth can be created and even destroyed, not just distributed. If other sectors are able to generate more wealth, inequality is reduced.


This is honestly too complex of an issue to easily unpack in a few lines, because the price and availability of money impacts everything. Including the startups you mention, and the availability of that money - and the desirability of tossing it into empty shell startups that don't much useful. It also impacts the people who live hand to mouth. It is difficult to get ahead when money you invest either comes with large amounts of risk, or zero returns - yet money you borrow is extremely expensive. Look back earlier in thread where I did quick calc of someone who saved $200 a month.

In a well functioning system, capital serves as a mechanism for creative destruction - people save money because it gives a return, that money is loaned to businesses that utilize that money to change themselves to reflect market conditions, creating more wealth that is distributed back through the chain. This is how a stable middle class comes to exist.

Right now the system is not functioning properly, and is full of massive distortions that are, frankly, unsustainable in the long term. The type of inequality we are seeing is a symptom, not a cause. To wit: taking medicide to feel better, aka, legislatively crushing the .01%ers of SV and such might alleviate some pain in the short term - but will not cure the disease. And the disease is what will ultimately do us in.

Or to put it another way: Taking from the rich to give to the poor is akin to patching our society together with duct tape and bailing wire. Maybe it will become necessary in order to keep afloat long enough to fix the boat, but if we aren't thinking about fixing the boat, all we are doing is buying a bit of time while patting ourselves on the back for what in effect is kicking the can down the road a bit. We're still gonna sink.


For who could be free when every other man's humour might domineer over him? - John Locke (2nd Treatise, sect 57)