> The successful entrepreneur makes his money by capital gains in the share or venture capital markets and not by extracting it from his employees.
Incorrect, that value is only sustained and increased by the efforts of company workers.
> Employer competes with other employers for both a)market share b) hiring employees -bidding up their prices.
Incorrect. Companies that don't have significant oversight in the form of government regulation or strong unions tend to collude to keep salaries low - which is exactly what has happened in the valley, and has meant that these companies have gigantic cash reserves that they aren't leveraging to hire the best talent.
> By comparing gains from entrepreneurship with regular salaries, you are comparing a stock variable with a flow variable.
No, I'm merely saying that the differences and risks suffered by investors and founders versus regular salaried employees are not a justification for the sometimes ridiculous difference between the compensation of the two.
Incorrect, that value is only sustained and increased by the efforts of company workers.
> Employer competes with other employers for both a)market share b) hiring employees -bidding up their prices.
Incorrect. Companies that don't have significant oversight in the form of government regulation or strong unions tend to collude to keep salaries low - which is exactly what has happened in the valley, and has meant that these companies have gigantic cash reserves that they aren't leveraging to hire the best talent.
> By comparing gains from entrepreneurship with regular salaries, you are comparing a stock variable with a flow variable.
No, I'm merely saying that the differences and risks suffered by investors and founders versus regular salaried employees are not a justification for the sometimes ridiculous difference between the compensation of the two.