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>> Variation in productivity is far from the only source of economic inequality, but it is the irreducible core of it, in the sense that you'll have that left w

>> Variation in productivity is far from the only source of economic inequality, but it is the irreducible core of it, in the sense that you'll have that left when you eliminate all other sources. > This blames poor people for being poor. How am I misreading this? FWIW, I read it differently. I think Paul is saying that even if we had a world where everyone had a truly equal opportunity, in the sense of having similar (or at least adequate) childhood nutrition, intellectual stimulation, education, etc., there would still be variations in productivity between individuals that would result in different economic outcomes. The second quote I read simply as saying that Paul doesn't think the tendency for wealth to concentrate can be stopped. If you want to complain that Paul could have expressed himself better, I won't argue; I agree that was by far his worst written essay. And I suspect he is genuinely pained by the reaction it received. To whatever extent this new piece is specifically a response to that reaction, I think it's more hurt than callous.

deleted 11y ago
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Joeri 11y ago
> if we had a world where everyone had a truly equal opportunity, in the sense of having similar (or at least adequate) childhood nutrition, intellectual stimulation, education, etc., there would still be variations in productivity between individuals that would result in different economic outcomes. That argument is still missing the point. Variations you will always have, but no guarantee that the same people would come out on top, unless you believe that the hardest workers happen to mostly come from well-financed backgrounds and caucasian gene pools. There are many people who work hard all their life and never make it out of the slums. Working hard is not a differentiator, it's what gets you a seat at the table. On the way up everyone works hard. Slackers don't even compete. The difference between those who make it to the top and those who don't is mostly not effort, it is opportunity, and good instincts to leverage that opportunity. In a truly fair world the people who came out on top would be an almost completely different set of people than those who are at the top today. I feel like the criticism of the essay was not because of its content but its theme. It felt like a defense of the current system, whether taken narrowly as SV or broadly as global capitalism. This struck a nerve because most people in their gut know that the current system is fundamentally unfair and needs to be replaced by something better. It cannot be a good system that made it so that the set of people who own as much wealth as the poorest 3 billion all fit on a yacht, and not even a very big one. People got angry because they thought he was defending the way things are, even if his actual position was more nuanced.
- ScottBurson 11y ago
  It's a weird essay. I think it goes wrong from the very beginning. From the second paragraph: [B]y helping startup founders I've been helping to increase economic inequality. If economic inequality is bad and should be decreased, I shouldn't be helping founders. No one should be. I think this is ridiculous. Creating new millionaires is not increasing inequality. I don't know anyone who thinks that (not to say that Paul might not have run into a few people who think that way). The problem, as you say, is the profound concentration of wealth into the hands of a few multi-billionaires. I would say also, it's the fact that the middle class in the US is actually shrinking. The fundamental way that the wealthy can help the middle class, while helping themselves at the same time, is by investing in new businesses that create jobs. This is precisely what YC is doing! This isn't increasing inequality but decreasing it. Not only are they creating jobs directly, they're also doing so indirectly, by teaching people -- even those who don't get into their program -- how to start startups. Founders don't get rich unless they build a successful business. And again, I don't think anybody minds that they can get rich; after all, a lot of them then either start new businesses or become angel investors themselves. There's nothing wrong with any of this, quite the contrary, and if Paul really does run into people who think there is something wrong with it, this is what he should tell them. I would go so far as to say that YC and its ilk are among the most creative, hopeful, positive things happening in the US economy today. Though I'm not involved with them directly -- I haven't even worked for a YC company -- I am very glad to have them here in the Valley, and I'm excited to see what they do in the coming years.

deleted 11y ago

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Joeri 11y ago

> if we had a world where everyone had a truly equal opportunity, in the sense of having similar (or at least adequate) childhood nutrition, intellectual stimulation, education, etc., there would still be variations in productivity between individuals that would result in different economic outcomes. That argument is still missing the point. Variations you will always have, but no guarantee that the same people would come out on top, unless you believe that the hardest workers happen to mostly come from well-financed backgrounds and caucasian gene pools. There are many people who work hard all their life and never make it out of the slums. Working hard is not a differentiator, it's what gets you a seat at the table. On the way up everyone works hard. Slackers don't even compete. The difference between those who make it to the top and those who don't is mostly not effort, it is opportunity, and good instincts to leverage that opportunity. In a truly fair world the people who came out on top would be an almost completely different set of people than those who are at the top today. I feel like the criticism of the essay was not because of its content but its theme. It felt like a defense of the current system, whether taken narrowly as SV or broadly as global capitalism. This struck a nerve because most people in their gut know that the current system is fundamentally unfair and needs to be replaced by something better. It cannot be a good system that made it so that the set of people who own as much wealth as the poorest 3 billion all fit on a yacht, and not even a very big one. People got angry because they thought he was defending the way things are, even if his actual position was more nuanced.

ScottBurson 11y ago
It's a weird essay. I think it goes wrong from the very beginning. From the second paragraph: [B]y helping startup founders I've been helping to increase economic inequality. If economic inequality is bad and should be decreased, I shouldn't be helping founders. No one should be. I think this is ridiculous. Creating new millionaires is not increasing inequality. I don't know anyone who thinks that (not to say that Paul might not have run into a few people who think that way). The problem, as you say, is the profound concentration of wealth into the hands of a few multi-billionaires. I would say also, it's the fact that the middle class in the US is actually shrinking. The fundamental way that the wealthy can help the middle class, while helping themselves at the same time, is by investing in new businesses that create jobs. This is precisely what YC is doing! This isn't increasing inequality but decreasing it. Not only are they creating jobs directly, they're also doing so indirectly, by teaching people -- even those who don't get into their program -- how to start startups. Founders don't get rich unless they build a successful business. And again, I don't think anybody minds that they can get rich; after all, a lot of them then either start new businesses or become angel investors themselves. There's nothing wrong with any of this, quite the contrary, and if Paul really does run into people who think there is something wrong with it, this is what he should tell them. I would go so far as to say that YC and its ilk are among the most creative, hopeful, positive things happening in the US economy today. Though I'm not involved with them directly -- I haven't even worked for a YC company -- I am very glad to have them here in the Valley, and I'm excited to see what they do in the coming years.