| Graham is arguing against an enormous straw man.
Word. I don't know anyone who understands enough to actually have a discussion (e.g. isn't some back to nature hippy) and seriously thinks we should attempt to minimise the opportunities to create new wealth. Everyone I know who argues for reduced economic inequality favours increased minimum wages and/or redistributive mechanisms (income/wealth tax). I don't know if Graham has encountered people who seriously argue against permitting opportunities to create wealth, or just thinks those people exist, or has some sort of anti-redistribution agenda (which would function to reduce the potential gains that could accrue to startup founders... though not significantly).
I was particularly struck by this suggestion:
"And if there are people getting rich by tricking consumers or lobbying the government for anti-competitive regulations or tax loopholes, then let's stop them. Not because it's causing economic inequality, but because it's stealing."
Stealing is an extremely imprecise and emotive word, and he makes no effort to clarify. Which is usually what you do when you want a lot of people to feel like they agree with your arguments even when they might not if you went into detail. But the weirder part of the statement (ignoring the fairly broad 'tricking consumers', which would include most people who market their products) is that he specifically identifies tax avoidance (which I'd argue ISN'T stealing) as something we should eliminate... "not because it's causing economic inequality, but because it's stealing", even though the main reason we have tax AT ALL (and hence laws around when you do/don't need to pay it) is to reduce economic inequality!
So... all our existing tax laws, and their economic-inequality-reducing redistributive effects, are wise and good and infractions should be rigorously prosecuted because they'd amount to stealing. But any NEW tax laws that might increase the redistribution of wealth to increase economic-equality would be bad and misguided? Because where we are, right now, is the perfect optimum, despite the widespread evidence of increased concentration of wealth and its negative consequences? Riiiight.
Finally, last I checked there are various areas which have lower tax than the USA. Yet somehow plenty of startups are still formed in the USA. Which casts doubt on the 'the startups will move elsewhere if you change anything to reduce their direct rewards' argument.