> He is defending what he is doing and what Y-combinator has been doing.

But that is the straw man. Those of us who think extreme economic inequality is a bad thing do not think that YC is a bad thing, notwithstanding that it does contribute to economic inequality.

The problem is not YC, the problem is that extremely rich people use their money to buy political power, which they then use to create laws that allow them to extract rents (by, for example, paying lower marginal tax rates than less wealthy people). It's the positive-feedback effect that this creates (more money -> more political power -> still more money) that is the problem, not YC, nor (obviously) the creation of wealth.