The sentiment is nice, but the only selection mechanism presented is that "An influx of inexpensive but mediocre programmers is the last thing they'd want; it would destroy them." One only need look at the current H1B situation to see just how eager most tech companies are to add another mediocre programmer at 30% off market rates.
Graham is missing the 99% of the market that isn't fast growing startups. Large companies don't have any way to evaluate "10x" programmers. I'm sure they'll take those kinds of people if they just happen to luck into one.
But big companies will be happy with mediocre programmers who fill a seat and can implement the latest company security initiative on the tiny section of code that's "theirs" as long as it doesn't cost too much.
In principle I agree with him - we should let in geniuses and people with skills that benefit everyone. But that's just the cover large companies are using to push down their labor costs.
