Further, he argues that attempts to limit such inequality would mean “ending startups.”
How Paul Graham gets it wrong in “Economic Inequality”
Seth Bannon

The phrase he used is “Ending economic inequality would mean ending startups,” which seems pretty clearly true to me and is a VERY different statement than “reducing inequality would mean reducing startups”. Later in the essay, it seems like he’s arguing three different things that we should attack to reduce inequality — closing loopholes on “cheaters”, reducing poverty, and increasing social mobility.