I'm confused. Are you arguing that resources in the "real world" are not finite? So we'll never run out of indium, oil, fresh water, fertile soil, etc? Because if you are, that's a fascinating viewpoint, and almost completely at odds with reality.
"Surely all the wealth creation done by startups is evidence of that."
Maybe, maybe not. A lot of the "wealth" created by startups exists nowhere but on paper.
As for you second point, don't confuse money with wealth. Most startups have liquidation value (dollar value) only on paper, because there is no one to buy them, but the product they create represents wealth to someone, even if it's only one customer. If the startup doesn't create enough wealth for enough people, it will probably die, in which case it won't be creating new wealth anymore, but their product made someone's life better, even if only for a short time.
http://cafehayek.typepad.com/hayek/2008/02/a-tribute-to-ju.h...
And I'm in Kansas City too... Weird.
All it takes is a second to stop and realize that wealth is created, not taken. If it was all really taken, then where in the heck did we take it from? (I mean we as in the whole world.) The world is immensely more wealthy than it was a thousand years ago, and all that wealth was created by the hard work of all those generations. Surely all the wealth creation done by startups is evidence of that.
I think this is generally an economic misunderstanding that a lot of people have. To them, it's "Every dollar Bill Gates has is a dollar less for everyone else, so that is unfair." In fact, PG made this argument much better than I can, here: http://www.paulgraham.com/wealth.html
That said, I did really enjoy how these teachers approached the art of teaching children. Challenging the children to examine and modify their own worldviews seems infinitely more effective than preaching to them about 'the right way.'