Since the owners of the company didn't create any wealth by creating the company... they just magically were born owning a shoe company and never worked a day i

Since the owners of the company didn't create any wealth by creating the company... they just magically were born owning a shoe company and never worked a day in their lives. </sarcasm> What happened to this fabled John is pretty crappy, but that is a risk every employee has always had. The only way to avoid that risk is to put your own capital on the line and be an owner (a founder is an owner, even if it only costs him $10 for the domain name). If anything, this article shows why capitalism does work well. If we weren't using capitalism, John couldn't start over again. If we were under communism, and the State fires and blacklists you, you are screwed. All jobs belong to the state. If we were under feudalism, and the Lord 'fires' you (most likely by taking your plot of land and possibly just killing you), then you're only choice is to try and find another Lord to take you in. How is that better? I'd bet the author wants a benevolent state to give us all jobs that pay the same amount. That is all fine and dandy, except then what would even be the point? At that point we'd be living on Airstrip One and enjoying our daily Two Minutes Hate.