The context of these comments often imply that at no point before SV existed did anyone invest large amounts of money in something that failed to work.
The reason why economic growth is rare (most economic growth that occurs globally is due to the impact of technology invented outside the country, 95% of countries globally have zero organic growth) is because it is extremely disruptive and means that someone with nothing other than money, who may not have been approved by society can invent something.
The point about disrupt vs reform above is correct...it just ignores the fact that reform has never been successful (despite it being repeatedly tried by politicians) because economic growth is so damaging to vested interests (there are multiple books about this topic, Innovator's Dilemma is one...I worked as an equity analyst, the number of examples of a company actually turning it around when faced with technological change are very few, the number of examples of a company bailing-in taxpayers due to political connections when faced with technological change is too large to count, this is particularly case outside the US because so much technological change comes from the US so calls to "protect" domestic industry are frequent and economically crippling).