[jorleif]

The author does not articulate his critique very well beyond claiming that the VC get disproportionate return compared to land and labor. A much better critique is Jaron Lanier's Who Owns the Future. There he argues that the problem is when companies create monopolies that shrink the overall economy (Instagram vs Kodak, Facebook vs publishing in general). The startup then provides the public with free services but at the same time it decreases employment opportunity. The whole machinery works as long as some other sector of the economy grows, but that is unlikely to be the case forever. Somehow there would need to be economic growth, not just lowered cost.