[HN Gopher] How to get rich without being lucky (2019)
       ___________________________________________________________________
        
       How to get rich without being lucky (2019)
        
       Author : Jaxtek
       Score  : 193 points
       Date   : 2021-05-22 12:00 UTC (11 hours ago)
        
 (HTM) web link (nav.al)
 (TXT) w3m dump (nav.al)
        
       | madengr wrote:
       | In engineering, its just as important to know what not to do. I
       | am an expert at knowing how not to get rich.
        
       | nonameiguess wrote:
       | Discussions like these seem to miss the critical difference
       | between individually and socially rational incentives and
       | behaviors. Surely, given you at least live in a place that is
       | sufficiently secure and stable with liberal markets and access to
       | capital, _anyone_ can get rich by following in the footsteps of
       | the investor class. It is definitely not the case that _everyone_
       | can get rich this way. If all 8 billion people on the planet did
       | nothing but shuffle around paper ownership claims, there would be
       | nothing to actually own. For an economy to produce anything at
       | all, the vast majority of participants need to be on the ground
       | making stuff, with only a tiny vanishing few shuffling paper at
       | the top to decide who gets to own the inputs and outputs.
       | 
       | Maybe we'll actually reach some future where all production and
       | maintenance labor is fully automated and most participants in an
       | economy won't be human and we can just ethically enslave them for
       | the benefit of human owners, but we're nowhere near that point.
       | 
       | I'm living right now in a hotbed of construction, a rapid growth
       | metro, and I'm in the middle of it. Three lots I can see from my
       | bedroom window are being leveled and turned into townhouses. That
       | work is being done by people. They certainly have machine work
       | multipliers. Nobody is carrying lumber and stone by hand from
       | quarries to job site. Nobody is leveling the earth with shovels
       | and trowels. But the bobcats and trucks are still operated by
       | humans. Pipe is laid by humans. Walls are erected by humans. If
       | all those people tried to do my job instead and became coders, or
       | worse, tried to become investors, I and all the investors would
       | be left with nowhere to live because no one would be building
       | houses. We'd have no water or electricity if no one was laying
       | the pipes and lines.
       | 
       | At some point, we should realize this and attempt to have an
       | economy that recognizes most people in the economy have to be
       | doing basic labor for there to be an economy at all, and figure
       | out a way to accomplish this without these people needing to live
       | paycheck to paycheck with the looming threat of a medical
       | emergency able to wipe them out permanently. We can't just tell
       | them to all change their focus from doing work to building
       | wealth, because if they actually all do that, there will no
       | longer be any wealth.
        
         | ItsMonkk wrote:
         | The author is mostly right, in this meta the best thing you can
         | do is leverage as much as you can and pray that it doesn't
         | burst at the wrong time. But that takes luck.
         | 
         | Incentives drive behavior. If you perverse the incentives, the
         | economy will follow.
         | 
         | Why is our productivity growth at all time lows? Because our
         | best are figuring out how to get people to click ads. Our best
         | are trying to work out exactly which financial product will go
         | up the most safely.
         | 
         | When the increase of the money supply outpaces the increase in
         | productivity, everyone mistakes leverage for genius.
        
         | spfzero wrote:
         | I think you've pointed out the fourth kind of luck, as
         | described in the article. The people building the houses,
         | driving the Bobcats, have a skill they've developed over time
         | through their effort, that now affords them employment.
         | 
         | If you know how to do something, and someone needs that,
         | they're going to call you up and ask you if you'd like to do
         | that thing for some amount of time for some amount of money. So
         | that ability is a form of wealth.
         | 
         | I don't think he's talking about everyone in the world becoming
         | passive investors; kind of the opposite actually.
        
           | vlovich123 wrote:
           | That literally is not what the author wrote though. He said
           | that "if you're the best at something and you're connected
           | with someone that needs that skill" then you'll get some
           | wealth potentially. That's not the same as learning a trade
           | that is easily accessible and attainable by anyone
           | interested.
           | 
           | What the author basically says in the article is "be part of
           | the owner class generating wealth or you are a parasite".
           | Talk about playing the very same status games he claims to
           | eschew.
        
         | eloff wrote:
         | I feel like you didn't read or listen to the content. Naval is
         | not suggesting you have to be an investor to get rich.
         | 
         | But you do have to do something that gives you leverage, like
         | starting a company. You're not going to get rich renting your
         | time to an employer (unless you get lucky with stock options,
         | or investing your income, but that's back to the point about
         | leverage.)
        
           | wslack wrote:
           | I think the point of the original comment is that everyone
           | can't follow that path, at least right now. Someone has to
           | pick the oranges and work in the warehouse.
           | 
           | So pretending that everyone in those jobs is making bad
           | choices is wrong, because someone has to do those jobs.
        
           | paulpauper wrote:
           | >You're not going to get rich renting your time to an
           | employer
           | 
           | poor goldman sachs execs. how ripepd off they are to only be
           | making millions/year when they could fire thier boss and
           | start a subway franchise. poor a-list actors only making
           | $20/million per film. Most small businesses,startups fail.
           | Odds are a doctor making 7-figures will become more rich
           | compared to an entrepreneur who dropped out of college.
        
             | danenania wrote:
             | Most people with a very high salary end up with an
             | expensive lifestyle to match it. If they lose their job,
             | they'll need to find another one before long. In this
             | sense, they are not that different from someone making
             | 1/10th the salary.
             | 
             | The main difference between being rich and being wealthy is
             | owning and controlling your time.
        
               | AuthorizedCust wrote:
               | > _Most people with a very high salary end up with an
               | expensive lifestyle to match it._
               | 
               | Evidence?
        
               | paulpauper wrote:
               | I hear this argument a lot. Why would lifestyles become
               | more expensive if you become an exec but not a successful
               | entrepreneur? Successful entrepreneurs like fancy, nice
               | things too.
        
               | danenania wrote:
               | That's true, but the entrepreneur owns some piece of an
               | income-generating asset. If the exec stops working, their
               | income immediately goes to zero, and if they didn't save
               | or get some equity, their wealth could be near zero too.
               | The entrepreneur can stop working, but still be left with
               | both income and a valuable asset (their piece of the
               | business).
        
               | medvezhenok wrote:
               | The exec can invest his excess income into income-
               | generating assets as well, with no problem. In addition,
               | he can use his constant cash flow as collateral to take
               | out a loan to invest in same income generating asset. And
               | the variance for the exec is much lower than for the
               | entrepreneur (failure rate much much higher for startup
               | founders).
               | 
               | So it's not apples and oranges.
        
               | rabuse wrote:
               | The article literally covers everything you stated.
        
             | gnicholas wrote:
             | Do doctors make millions annually?
        
               | lotsofpulp wrote:
               | I know quite a few that do. They make amazing silent real
               | estate investment partners.
               | 
               | Here's a thread on Bogleheads from yesterday from a young
               | doc earning $1M+:
               | 
               | https://www.bogleheads.org/forum/viewtopic.php?t=349431
               | 
               | I think median is closer to $300k to $500k per year
               | though.
        
             | mehphp wrote:
             | Why the pedantry? Those examples are exceedingly rare.
        
               | paulpauper wrote:
               | being a doctor is rare?
        
               | dragonwriter wrote:
               | Being a doctor that makes 7 figures is rare, yes.
        
               | mehphp wrote:
               | Yes, becoming a wealthy doctor is rare.
               | 
               | Again, the original point isn't that it's impossible to
               | get rich by selling your time but that you'll most likely
               | need some leverage (i.e. in the form of owning a
               | business)
        
               | lotsofpulp wrote:
               | Becoming a doctor in the US is the most sure fire way to
               | become wealthy across a whole occupation class. Less so
               | today, as they are being squeezed, but they had a
               | goldmine from 1980 to 2010s.
               | 
               | If you're not becoming wealthy with these kinds of
               | average incomes, you're doing something wrong:
               | 
               | https://www.medscape.com/slideshow/2019-compensation-
               | overvie...
        
               | ryan93 wrote:
               | Most doctors retire with millions if they want.
               | Pediatricians make more than most engineers
        
               | onlyrealcuzzo wrote:
               | Or an engineer at FAANG+M? There's literally millions of
               | us.
        
               | dragonwriter wrote:
               | > Or an engineer at FAANG+M? There's literally millions
               | of us
               | 
               | "Software and Web Developers, Programmers, and Testers",
               | total, in the US are under 2 million, and FAANG+M are a
               | small fraction of that. FAANG+M is around 1 million total
               | employees, but most of that is Amazon, non-software.
               | 
               | The idea that there are millions of FAANGN+M software
               | engineers is simply nowhere close to true.
        
               | mehphp wrote:
               | FAANG is engineers do great but not sure I'd classify the
               | vast majority of them as rich...
        
               | ghaff wrote:
               | Do you like upper middle class better? No, they're not
               | flying private jets but unless they're right out of
               | school with a lot of debt they're probably pretty
               | comfortable.
        
               | obloid wrote:
               | A doctor making 7 figures is rare. Source: I am a doctor
        
             | dragonwriter wrote:
             | > poor a-list actors
             | 
             | A-list actors are pretty much defined by being the
             | extremely narrow elite of the profession (entry into which
             | elite requires work and talent and lots of luck) whose
             | income is determined by their value licensing their
             | personal brand to attach to things.
             | 
             | > Odds are a doctor making 7-figures will become more rich
             | compared to an entrepreneur who dropped out of college.
             | 
             | Sure, but most doctors don't make 7 figures.
             | Anesthesiologists (the highest paid medical occupation code
             | in BLS data) have a national mean salary of $271K.
        
           | SyzygistSix wrote:
           | So what does a world where no one is renting their time look
           | like?
        
             | paulpauper wrote:
             | it is a meaningless/nonsensical statement
        
         | foogazi wrote:
         | > and figure out a way to accomplish this without these people
         | needing to live paycheck to paycheck
         | 
         | Why not let them figure it out themselves ?
         | 
         | Also, no one "needs" to live paycheck to paycheck, just like no
         | one needs to make bad investments, but it happens
         | 
         | maybe someone googles "how to get rich" and finds Naval's
         | advice. People can decide if it's worthwhile for them
        
           | cortesoft wrote:
           | No particular individual needs to to be those things, but the
           | structure of our society requires SOME people to be those
           | things.
        
           | srswtf123 wrote:
           | > Also, no one "needs" to live paycheck to paycheck
           | 
           | Your disconnect from reality is showing.
        
             | godfreyantonell wrote:
             | I suppose in the same way as no one "needs to" live.
        
         | qzw wrote:
         | > Maybe we'll actually reach some future where all production
         | and maintenance labor is fully automated and most participants
         | in an economy won't be human and we can just ethically enslave
         | them for the benefit of human owners, but we're nowhere near
         | that point.
         | 
         | It's equally likely that in such a future most people will be
         | on some version of UBI that allows them to get by, but wealth,
         | in whatever form it takes, will still be limited to a
         | relatively small subset of people. There's no reason to believe
         | that the robots/AGI/whatever means of production will naturally
         | be owned collectively rather than privately. I hope the future
         | turns out better, but there seems to be something in human
         | nature that makes inequity tend to stick around.
        
           | ben_w wrote:
           | > There's no reason to believe that the robots/AGI/whatever
           | means of production will naturally be owned collectively
           | rather than privately.
           | 
           | I think that depends on the tech and what it can do. If we
           | get a general purpose construction robot that can also make
           | copies of itself -- be that a 3D printer with some manual
           | assembly required once the parts come out, or a genetically
           | engineered programmable moss, or bioprinted fairy drones with
           | microchips for brains -- anything like that has close to no
           | marginal cost to give to everyone rather than just to the
           | rich.
           | 
           | If we never get von Neumann tech? Then sure, I agree with
           | you.
        
             | pkdpic_y9k wrote:
             | Uhh... You had me at "bioprinted fairy drones" Please give
             | a website, blog or book recommendation so I can become your
             | humble disciple.
        
               | ben_w wrote:
               | Thanks for the vote of confidence! It inspired me to go
               | and write a blog post for this: https://kitsunesoftware.w
               | ordpress.com/2021/05/22/bioprinted-...
        
             | swader999 wrote:
             | The navies zero point energy patents perhaps. How else
             | would they get those triangles in the skies?
        
           | pydry wrote:
           | If de-globalization continues at its current pace, we'll
           | probably find that a lot _more_ labor is required in the
           | future.
           | 
           | A lot of what we imagine to be automated work is actually
           | just work outsourced to countries with cheaper labor and a
           | container port. In the event that global supply chains
           | becomes unreliable, a wave of on-shoring will follow.
        
       | bitwize wrote:
       | Making money is like a clicker game, such as Cookie Clicker. If
       | you are earning a wage at a job, you're still in the boring part
       | of the game where you click to get cookies. Wealthy people are
       | playing the metagame, buying the grandmas and factories and space
       | vortexes that automatically generate cookies. And that's when the
       | game gets _fun_.
       | 
       | I think our concept of "greed" is a bit misplaced. Greed is not
       | about having more money just to have it. If you or I had as much
       | money as Bill Gates or Donald Trump, we wouldn't know what to do
       | with the huge amount left over after all our needs and desires
       | are met. It's about being able to buy the next thing that
       | automatically clicks for cookies, so that they can continue
       | making cookies (money) faster. Increasing the rate of cookie
       | generation means they're winning at the game. It's their hobby,
       | it's their passion.
        
       | samatman wrote:
       | It isn't at all true that hunter-gatherers had only status and
       | not wealth.
       | 
       | The Native American tribes of eastern North America used wampum,
       | small, regular beads made from a few specific shells, as a store
       | of value and medium of exchange.
       | 
       | Yes, they couldn't own that much more than they could carry. Some
       | of these peoples did farm, some didn't, but all of them relied on
       | hunting or fishing, and most had to move around at least a couple
       | times a year.
       | 
       | But a wealthy Iroquois could wear enough wealth to buy many times
       | what he could carry in meat, tools, furs, and anything else which
       | other people could make available.
       | 
       | Shell money isn't limited to the Native Americans, either, it's
       | been found in paleolithic grave goods and was quite widespread
       | anywhere Europeans encountered hunter-gatherers.
        
       | anotheryou wrote:
       | I'd really like to read the continuation of this thought
       | experiment. Which skills, if any industry knowledge is part of
       | it, what the first steps would be, how to balance financial
       | security and entrepreneurship ect.
       | 
       | "I like to think that if I lost all my money and if you drop me
       | on a random street in any English-speaking country, within 5, 10
       | years I'd be wealthy again. Because it's a skill set that I've
       | developed and I think anyone can develop."
        
         | gspr wrote:
         | How about you are dropped onto one of those streets, with your
         | skillset, but: You're a person of color. Perhaps with no formal
         | education to get someone to even consider your skills. Maybe
         | you're past your prime age-wise too. And look it. Perhaps you
         | develop an untreated health issue after being dropped on those
         | streets.
         | 
         | Now try.
        
           | [deleted]
        
           | milansm wrote:
           | You realize that Naval is a person of color?
        
       | legulere wrote:
       | > Wealth is the thing you want. Wealth is assets that earn while
       | you sleep; it's the factory of robots cranking out things. Wealth
       | is the computer program running at night that's serving other
       | customers.
       | 
       | In reality you still need people to earn money. Wealth really is
       | the control over the limited means of production which allow you
       | to gain out of the work of others.
       | 
       | There are also positive sides to it though: Having other people
       | earn money for you is a pretty high incentive for bringing into
       | the world new means of production
        
       | pazimzadeh wrote:
       | The idea that there's no luck involved is pretty dumb.
        
         | pototo666 wrote:
         | He actually talks about four kinds of luck. Have you read it?
        
         | oh_sigh wrote:
         | Especially because the author has said in other instances that
         | he got lucky to get accepted to Stuyvesant high school in NYC,
         | which is basically the premiere public school, and that opened
         | up huge pathways for him to later get into an ivy league, and
         | to get into tech investing. Where would he be in life if the
         | coinflip in the Stuy admission office went the other way and he
         | ended up going to a more normal public school and some other 14
         | year old got accepted in his stead?
         | 
         | Also, he hasn't talked much about his family - except that they
         | were "immigrants and nobodies". But his mom did emigrate from
         | India to NYC with two children, which isn't exactly common. I
         | suspect, perhaps, his family is a little better connected, or a
         | little better off financially, than he has let on. But it would
         | be impossible to get the truth at this point unless it came
         | from an outside source because Naval is going big on narrative
         | building his own life.
        
           | losvedir wrote:
           | > he got lucky to get accepted to Stuyvesant high school in
           | NYC ... Where would he be in life if the coinflip in the Stuy
           | admission office went the other way and he ended up going to
           | a more normal public school
           | 
           | I'm pretty sure "got lucky" here is kind of a humble brag,
           | like "I'm so lucky to be smart". Stuyvesant admissions are
           | straightforwardly and deterministically based on a test, with
           | spots going to the highest scores. There's no admissions
           | officers considering extracurriculars, or interview or
           | anything like that.
        
           | redisman wrote:
           | Just the fact that his mom moved from India to NYC is a giant
           | multiplier on ones chance of financial success. Some might
           | even call that.. luck?
        
         | snickersnee11 wrote:
         | Well, we're assume there's a certain path you can take to
         | maximize your chances, it will be too pessimistic to always
         | take bad luck in account.
        
         | sergiotapia wrote:
         | There's most definitely luck involved, but a huge part of it is
         | being prepared to capitalize on those lucky opportunities. Are
         | you ready when the bell rings?
        
           | moate wrote:
           | And if the bell never rings?
        
             | sergiotapia wrote:
             | It always rings. The vast majority of people never
             | volunteer, never want to be visible, never want to put in
             | the work. The odds are in your favor that the bell will
             | ring for you, just by reading this forum you probably read
             | other interesting things. Most people just watch TV, it's
             | crazy but it's true.
        
         | danenania wrote:
         | That's true, but it's just as dumb to say that success is all
         | or mostly luck.
         | 
         | If one person struggles for years, trying and failing again and
         | again before finding success, and another person spends all
         | that time watching tv and playing video games, is the
         | difference in outcome only due to luck?
        
         | ne0flex wrote:
         | Depends on your definition of luck. Some people define luck has
         | having the skill to take advantage of opportunities you come
         | across. Of course, the skill thresholds to take care of
         | opportunities varies significantly case by case.
        
       | mgh2 wrote:
       | "Industry, thrift and self-control are not sought because they
       | create wealth, but because they create character." - Calvin
       | Coolidge
       | 
       | I think our generation is forgetting some fundamentals: money at
       | the expense of anything else. The problem with this approach, is
       | not only that it destroys character in the individual, but that
       | it also scales externalities to the rest of society.
       | 
       | Part of this narrative is sold by startup culture and technocrats
       | preaching to "change the world", while in reality the majority is
       | just chasing quick money. From FAANGs to VCs, they control the
       | media that convince young people to do the same: Robinhood,
       | GameStop, cryptocurrencies are just reflections of this epidemic.
       | 
       | This article is as ignorant as it gets as it refers to a
       | misquoted saying "money is the root of all evil". The real quote
       | is "the LOVE of money is the root of all evil" (aka. GREED)
       | 
       | "The vaunted American dream, the idea that life will get better,
       | that progress is inevitable if we obey the rules and work hard,
       | that material prosperity is assured, has been replaced by a hard
       | and bitter truth. The American dream, we now know, is a lie. We
       | will all be sacrificed. The virus of corporate abuse - the
       | perverted belief that only corporate profit matters - has spread
       | to outsource our jobs, cut the budgets of our schools, close our
       | libraries, and plague our communities with foreclosures and
       | unemployment." - Chris Hedges
       | 
       | Americans are forgetting their values
       | https://m-g-h.medium.com/why-we-are-dispensable-7a577eba4f3e
        
         | fairity wrote:
         | You do a great job summarizing the problems that arise from
         | greed, but I wonder if you recognize that there are
         | countervailing benefits.
         | 
         | A lot of progress and innovation has been made by greedy
         | individuals. I think much of this progress would be lost had
         | they adopted more wholesome values, because greed is a superior
         | motivator.
         | 
         | Greed is a superior motivator because it has no bounds. When
         | someone is obsessed with accumulating wealth, it tends to be a
         | never-ending pursuit. No matter how much wealth they
         | accumulate, they're left wanting more. This is in stark
         | contrast to more wholesome values, which tend to be more easily
         | satiated.
         | 
         | I think another way to frame this is: the problem is not greed
         | itself. Rather, the problem is that our current system of
         | harnessing greed fails at controlling negative externalities.
         | Without these negative externalities, greed would be a positive
         | force.
        
           | c22 wrote:
           | It doesn't make any sense to talk about "losing" progress.
           | Either you're progressing or you're not. What you're
           | potentially losing here is "speed of progress" which may or
           | may not turn out to be beneficial to this planet's
           | inhabitants over the long run.
        
             | Dudeman112 wrote:
             | I think you are hanging to the literal meaning of the
             | expression they used instead of the metaphorical (aka the
             | progress wouldn't have been achieved).
             | 
             | As a side note:
             | 
             | >It doesn't make any sense to talk about "losing" progress.
             | 
             | Haven't you (or someone you know) ever lost progress
             | because of a power failure? ;)
        
           | mgh2 wrote:
           | For who you may ask? Only to the elite few, the rest are left
           | with scraps.
        
           | andrekandre wrote:
           | > because greed is a superior motivator.
           | 
           | is it?
           | 
           | and even if it was, is it worth the (personal, familial,
           | societal, environmental) consequences?
        
             | gary_0 wrote:
             | There are definitely counter-examples. Linux wasn't started
             | because Torvalds thought it would get him rich quick.
             | Rowling didn't write the first Harry Potter thinking it
             | would eventually earn billions. Plenty of famous artists,
             | inventors, and scientists died poor, only receiving
             | posthumous recognition. Key vaccine researchers were
             | resigned to struggling in less-profitable sectors of
             | biotech until 2020 happened.[0][1]
             | 
             | People in a great many fields put in huge amounts of effort
             | for very little financial reward (and even virtually
             | guaranteed hardship), and sometimes that results in huge
             | benefits for the world.
             | 
             | [0] https://news.ycombinator.com/item?id=26125003
             | 
             | [1] https://www.nytimes.com/2020/04/27/world/europe/coronav
             | irus-...
        
               | mettamage wrote:
               | Feynman is a fun one. Einstein obviously. I like strogatz
               | and what he did with graph theory.
        
           | jollybean wrote:
           | "When someone is obsessed with accumulating wealth, it tends
           | to be a never-ending pursuit. "
           | 
           |  _Wealth creation is not value creation_.
           | 
           | Just because you put money in your account, does not mean you
           | 'grew the pie' - in fact - you can generate a lot of wealth
           | individually, while _shrinking_ the overall pie.
           | 
           | For example, some kinds of resource extraction do more
           | environmental damage than the profits generated.
           | 
           | 'Good Capitalism' creates a ton of value for society, and
           | then captures some of those surpluses.
           | 
           | 'Negative Capitalism' just grabs surpluses by whatever means:
           | leverage, legalities, etc..
           | 
           | The problem is we generally don't have a language for
           | distinguishing between the two.
           | 
           | As of today, I believe everything related to blockchain is
           | 'bad capitalism' - in that, the externalities and effort are
           | not worth the benefits (though that could change).
           | 
           | My mother was complaining yesterday about the volume of ads
           | on Facebook - while I think ads are ok, when people are
           | locked in and deluged, its starts to corrode the net value of
           | a situation.
           | 
           | 'The Web' and 'Google' probably create a lot of value.
           | 
           | 'Facebook' and 'Blockchain' ... more dubious.
           | 
           | Because of the ridiculous amount of money available to be
           | made in net-zero games, even respectable VC's have to pay
           | attention.
           | 
           | It definitely bothers me that there is no language of
           | distinction in the SV.
           | 
           | Finally, yes, greed is a quixotic motivator, and sometimes it
           | actually does help.
        
           | slg wrote:
           | >Greed is a superior motivator because it has no bounds. When
           | someone is obsessed with accumulating wealth, it tends to be
           | a never-ending pursuit. No matter how much wealth they
           | accumulate, they're left wanting more. This is in stark
           | contrast to more wholesome values, which tend to be more
           | easily satiated.
           | 
           | I'm not sure why you are stating this like it is a universal
           | fact. Plenty of people reach a level of wealth in which their
           | desire for more is satiated and many people have a need to do
           | good that is never fully satisfied. It all depends on the
           | person.
        
             | fairity wrote:
             | > It all depends on the person.
             | 
             | Agreed. I'm speaking in generalities to make the point
             | that, on average, greed is a superior motivating force. At
             | least from personal experience, I've found far more people
             | foregoing personal health and relationships for the sake of
             | wealth accumulation than societal contribution. Even among
             | those that eventually satiate their desire for wealth, it's
             | mostly because their values have shifted (not because their
             | ultimate value remains wealth accumulation and now they
             | have enough).
        
             | atlgator wrote:
             | You just matched one viewpoint with an opposing one. At
             | least the OP's opinion has some empirical evidence in the
             | form of Gates, Jobs, Rockefeller, Vanderbilt, and so on.
             | All greedy robber barons of their time that made profound
             | impacts on industry and society while treating their
             | employees like grist for the mill.
        
               | Retric wrote:
               | Gates stopped and started spending his money. If the
               | wealthiest person in the world eventually gives up that
               | suggests greed is bound, it's simply high enough in many
               | people that they never realize that goal.
               | 
               | Further the institution of retirement suggests greed
               | isn't an unlimited motivator for most people.
        
               | robocat wrote:
               | Is Gates actually spending it faster than his equity is
               | rising in value?
        
               | mettamage wrote:
               | Yep, see FIRE and it's sibling acronyms.
        
               | mettamage wrote:
               | Self determination theory is the opposite. And has a lot
               | of empirical evidence.
               | 
               | Also check the overjustification effect to see how
               | extrinsic motivation destroys any motivation.
               | 
               | Imo intrinsic > extrinsic
               | 
               | Any time any day.
               | 
               | Want examples? Look at passionate people. Look at
               | academia. They're not a handful if people but tons of
               | them that did good work that helped innovation.
        
             | robocat wrote:
             | As GP said in your quote "When someone is obsessed...".
             | 
             | Disclaimer: not saying I agree with GP.
        
         | WalterBright wrote:
         | The free market harnesses greed to make everyone else better
         | off. We live in a golden age, all the result of greed.
         | 
         | No other economic system has come close to that.
        
           | lucian1900 wrote:
           | The vast number of homeless in all major cities would
           | disagree. Same with the countless whose livelihoods are being
           | ruined by the unfolding climate catastrophe. Not to mention
           | the majority of humans being kept poor for the profit of a
           | few.
           | 
           | No economic system other than capitalism has come close to so
           | much suffering and death.
        
             | WalterBright wrote:
             | > No economic system other than capitalism has come close
             | to so much suffering and death.
             | 
             | See "The Black Book of Communism".
             | https://www.amazon.com/Black-Book-Communism-Crimes-
             | Repressio...
        
               | lucian1900 wrote:
               | Which counts invading Nazis and babies that might have
               | been born. It's widely panned by historians and even
               | several of the authors admitted they made bits up.
               | 
               | Regardless, capitalism's death toll far exceeds 100
               | million, it achieves that much in a few years. The
               | carnage is truly difficult to imagine, especially in the
               | comfort such carnage buys for the imperialist countries.
        
               | rzmnzm wrote:
               | Nothing in "capitalism" watches the scale of stalin's
               | purges and dead camps. Or Mao's They followed an
               | impossible dream straight into hell.
        
               | halsom wrote:
               | This book has been proven a fraud by historians around
               | the world time and time again, including by many leading
               | historians in the United States. It's fraudulence, and
               | the support and proliferation of it by US state officials
               | and US academies is sheer embarrassment. The fact that
               | anyone still has the nerve to so much as imply that this
               | is a worthwhile source of information should serve as a
               | stain on the prevailing liberalism of our times.
        
               | WalterBright wrote:
               | Cites, please.
               | 
               | Are you claiming that the famines in the USSR and the
               | gulags, for example, didn't happen? How about Pol Pot's
               | massacres?
               | 
               | I'm curious as to your explanation for why communist
               | countries built walls to keep people in, and the US
               | builds walls to keep people out? Can you point out
               | famines and gulags in the US?
               | 
               | I toured East Berlin in 1969. I went through the wall.
               | East Berlin looked like a drab prison camp compared to
               | West Berlin. You can believe whatever you like, but I've
               | seen it with my own eyes.
               | 
               | I think the Berliners were a little too eager to tear
               | down that wall, though I totally understand why. Should
               | have left more of it up to inform later revisionists.
        
               | lucian1900 wrote:
               | The GDR was poor because it was small, didn't start out
               | with much industry, had a hostile enclave forced on half
               | its capital, paid reparations, competed with the US-
               | funded western part and was under constant attack from
               | it.
               | 
               | Don't confuse the effects of your country's imperialism
               | with efforts to resist it.
        
               | WalterBright wrote:
               | They were poor because they spent a large fraction of
               | their GDP on the Wall.
               | 
               | I've heard the claim before that the Wall was built to
               | keep Westerners out. But, as I said, I've visited the
               | Wall in 1969. It was very clearly designed to keep people
               | in, not out. The defenses _pointed East_. It was a
               | layered defense, with the weakest parts easternmost and
               | the deadliest parts adjacent to the Wall itself. Exactly
               | what would be built to defend from attack _from the
               | East_. You 'll see the same setup in fortifications from
               | castles (layers pointing outwards) to prisons (layers
               | pointing inwards).
               | 
               | For another example, West Berlin helped out people who
               | wanted to invade East Berlin by building platforms so one
               | could look over the Wall (as myself and lots of tourists
               | did). Nobody hopped over, though, to invade the East. But
               | many got shot trying to go the other way, there's a
               | museum there documenting it.
               | 
               | BTW, it was the East that blockaded West Berlin,
               | attempting to starve the city into submission, not the
               | other way around.
        
         | acituan wrote:
         | > I think our generation is forgetting some fundamentals: money
         | at the expense of anything else.
         | 
         | This makes it sound like it is a collection of individual
         | failings that lead to market and growth remaining as the only
         | normativities today.
         | 
         | It is the other way around; since religion and nation are left
         | for dead after modernism, there is no glue layer that brings
         | values together. People are not likely to be virtuous in
         | isolation because in absence of coordinating factors, game
         | theoretic advantage is on the one who cheats, at least in the
         | short run. If there is no ambient sense of fair play, character
         | doesn't pay the bills.
         | 
         | New generations are increasingly feeling being cheated out of a
         | life preceding generations had had. There is only one button
         | available to them and that is "more work, more growth, more
         | hype".
         | 
         | The problem with the article's premise is in its framing; why
         | does one feel that they need to be _rich_ to feel secure to
         | begin with? What anxiety locks us up on focusing on that goal?
         | What buttons we could _viably_ add back to the game?
        
         | redisman wrote:
         | That dream was scrapped for parts by Reagan et al. It's
         | ridiculous to blame the millennials- the first generation
         | (ever?) in the US to be worse off than their predecessors
         | economically.
        
           | mgh2 wrote:
           | I agree, but is emulating the errors of our parents that
           | corroded society the best solution?
        
             | davesque wrote:
             | But our "parents" are still largely in control? Wouldn't
             | passing economic reforms probably be easier without a bunch
             | of deluded boomers and gen Xers in Congress?
        
               | mgh2 wrote:
               | As hard as it is to believe, the gov. is on our side.
               | They are the last resort against greed. Maybe consider
               | working for them to change the rules from the inside.
        
               | humanrebar wrote:
               | Show me a government that solved the whole greed problem.
        
               | Zhenya wrote:
               | How do you square that people are greedy, but a group of
               | people in power, with the threat of violence, is not.
        
               | Balgair wrote:
               | > They are the last resort against greed.
               | 
               | Nit: In a democracy, _you_ are the government. We all
               | are. There is no  'them'. _They_ are _us_.
               | 
               | I know, I know. What I just typed was naive pedantic
               | droll.
               | 
               | But if you really do believe it, then it does become
               | true, kinda. It takes work, a lot of work, very hard
               | work. But votes and service to the community really
               | really do matter.
        
               | taneq wrote:
               | Nit^2: You aren't in a democracy.
        
               | coldelectrons wrote:
               | Nit^3: Quit adversarially picking nits and do your part
               | with societal knolling.
        
         | whatshisface wrote:
         | > _it also scales externalities_
         | 
         | I knew when I saw "at scale" in call-for-proposals issued by
         | federal granting agencies that it was soon to lose all meaning,
         | and I think this is about the point at which it's done that.
        
         | imheretolearn wrote:
         | >> I think our generation is forgetting some fundamentals:
         | money at the expense of anything else.
         | 
         | This is a very broad statement and does _not_ apply equally to
         | everyone. It fits well for someone belonging from a well off
         | family /society vs someone struggling to survive.
        
           | roughly wrote:
           | I don't think the critique here is against those struggling
           | to survive, and I don't think you're doing those folks any
           | favors by cutting off conversations about the overfixation on
           | money in American society.
        
         | andrewmcwatters wrote:
         | The full verse: "For the love of money is a root of all kinds
         | of evils. It is through this craving that some have wandered
         | away from the faith and pierced themselves with many pangs." -1
         | Timothy 6:10 (ESV)
        
           | [deleted]
        
         | 1270018080 wrote:
         | The YC bubble might be addicted to greed, but I don't think the
         | youngest generations desire money more than anything else. Most
         | don't even have the opportunity to desire money.
         | 
         | https://www.washingtonpost.com/business/2019/12/03/precariou...
         | 
         | Here's the classic chart that has been thrown around.
        
         | 99_00 wrote:
         | Greed is not new. You assume people are greedier now because
         | you are alive now.
        
           | planet-and-halo wrote:
           | I think maybe the point of the comment is that there were
           | countervailing forces in society at one point, e.g. the
           | dictates of certain religions. That aspect of society is
           | substantially weakened in our time (ethical codes of living
           | are broadly considered antiquated and ridiculous in modern
           | societies), so the focus on greed or greed-adjacent
           | motivations are less restrained. Whether that is a Good Thing
           | (tm) is up for debate, but it seems like a reasonable
           | statement to me.
        
             | truth_ wrote:
             | > there were countervailing forces in society at one point,
             | e.g. the dictates of certain religions.
             | 
             | Only because they just wanted the money for themselves.
        
               | planet-and-halo wrote:
               | This is sort of the obvious "opiate of the masses"
               | counter, which I think is a reasonable consideration.
        
           | jollybean wrote:
           | Greed is not new, but the mechanics of society are completely
           | different now than 100 years ago.
           | 
           | For common people only 2 generations ago, the only way to
           | 'make money' was to do actual work, something that probably
           | created some kind of net value. Surpluses were shared
           | differently, but work was done.
           | 
           | The opportunities to hustle and grab value while creating
           | little for society is available to the common person today.
           | 
           | The economics have changed quite dramatically and that does
           | factor into the equation.
        
       | enriquto wrote:
       | fuck being rich. I just want to be able to afford a small house
       | to live with my family. If I saved 100% of my salary for a decade
       | I still would't be able to afford half of it.
        
         | amelius wrote:
         | You don't work in IT, I suppose?
        
           | enriquto wrote:
           | I guess I do, but in academia (and in Europe). Is it
           | different in the U.S.? How many years worth of a professor
           | salary do you need to buy a house in a major city?
        
             | ericmay wrote:
             | It really depends on the city, but I'd say in most major
             | metro areas in the U.S. average home price is going to be
             | $300,000 or so.
        
               | edoceo wrote:
               | Zillow says Seattle is over $800,000.
               | 
               | Can't find salary info for UW (the big university).
               | 
               | Tech-folk making $150,000+
        
               | the_only_law wrote:
               | > Can't find salary info for UW (the big university).
               | 
               | In most states the salaries of state employees (at least
               | over a certain amount) are available. Since UW is a
               | public school you should be able to find them here:
               | http://fiscal.wa.gov/salaries.aspx
               | 
               | Filtering by UW employees I can see at least one
               | professor making $627k in 2019, and I imagine there are
               | lower tier professors making a fraction of that (some
               | associate professors making < $100k).
        
               | gnicholas wrote:
               | Universities in expensive cities tend to have housing-
               | specific perks because otherwise recruiting/retention
               | would be very difficult. One school we considered allows
               | faculty to forego $30k/yr in salary in exchange for a
               | beautiful home they can live in as long as they teach
               | there. The school will customize the home to the
               | professor's liking, perform all maintenance (down to the
               | lightbulbs), and pay all property taxes.
        
             | Koshkin wrote:
             | Depends on the price of the _house in a major European
             | city_ (which could be pretty high, I imagine).
        
         | jl2718 wrote:
         | This is near to his point. Salary is trading 'wealth' for
         | 'money'. You could literally build that house to achieve
         | 'wealth' faster than you can earn it by saving money from
         | salary.
         | 
         | This essay helped me understand how I made this mistake over
         | well more than that decade you fear. The 80-90% saved from two
         | decades of engineering salary did absolutely nothing to get me
         | closer to debt-free housing security. Money is amazing when you
         | see it for the first time, but it ends up being worthless.
         | Investments too - risk of unmitigated loss for an individual
         | investor is structurally greater than the potential for post-
         | tax gain.
         | 
         | So he's saying to build wealth, not money, and definitely avoid
         | status games. (But we're here posting, so, failing that last
         | one spectacularly.)
        
           | polishdude20 wrote:
           | Wait, so you're saying to build a house rather than buy it
           | because it's cheaper? I think the overwhelming amount of
           | costs of a house is the actual land it's on. You can't build
           | land.
        
             | jl2718 wrote:
             | You can build a house anywhere if you don't need a salary
             | tied to an expensive area.
        
               | polishdude20 wrote:
               | Yeah the dream of remote. I sometimes think of getting a
               | remote job and leaving for a cheap area but things like
               | family and friends really tie me down here. It would
               | really suck to see my parents only once or twice a year
               | knowing that there's maybe 20 years or so left with them.
        
             | quantumofalpha wrote:
             | Depends on location and probably not true in most of the
             | world by area. There's lots of land in the world you can
             | have for cheap. Or even free, e.g. Russia is happy to hand
             | out 1ha in the far east to any citizen with only one string
             | attached - go and do something with it within 5 years, then
             | it's yours. Somehow, not many takers.
        
             | eloff wrote:
             | I'd need a minimum 700,000 to buy a lot or a condemned
             | teardown home on a lot here in Vancouver, BC. Actually
             | that's not Vancouver, that would be an hour away in Maple
             | Ridge or Langley. I'm ok with building (or subcontracting
             | the building of) my own home - but I still can't afford the
             | lot to even start the process.
        
         | pmoriarty wrote:
         | _" I just want to be able to afford a small house to live with
         | my family. If I saved 100% of my salary for a decade I still
         | would't be able to afford half of it."_
         | 
         | In what country and what area?
         | 
         | There are places which will pay _you_ to move in, and living
         | there is free.
         | 
         | They might not be places you want to live, especially not with
         | a family, but they exist
         | 
         | Then there are places that are super cheap by developed-nation
         | standards.. like Eastern/Central Europe, parts of South/Central
         | America, Asia, Africa... pretty much anywhere.
         | 
         | Even in the US, if you live far enough from a metropolitan area
         | or in some less desirable locations you can find really cheap
         | homes, or cheap land on which you can plop down a trailer or a
         | kit-home, or build your own out of cheap alternative materials.
         | 
         | Again, you might not want to live in such places for a variety
         | of reasons.. but they're affordable.
        
         | nodesocket wrote:
         | Have you thought about a career change? You mentioned below you
         | are a professor, a nobel endeavor but obviously not a very
         | lucrative one (financially). Perhaps there is another career
         | you can also love which pays you more and open doors of
         | freedom.
        
           | enriquto wrote:
           | I see this problem as a societal, not a personal failure.
           | Minimum wage should be enough to live comfortably, but the
           | housing market is bonkers.
        
             | dinkleberg wrote:
             | You can (rightfully) blame external sources, but doing so
             | isn't going to make any difference in your experience of
             | life. If your desire is to own a house, there are actions
             | you can do to get there. Is it fair? No, but neither is
             | life.
        
               | csunbird wrote:
               | That is the main point. Why is life not fair and why do
               | we not try to do things to make it fairer? We all try to
               | unbalance the system by trying to get more money or more
               | power, instead of trying to work together and make it
               | fair for everyone.
        
               | ativzzz wrote:
               | Because we are humans, and the factors that drive humans
               | who are capable of making widespread change that would
               | make things fair steer them towards wealth and power
               | instead. That's just reality.
        
               | [deleted]
        
               | dinkleberg wrote:
               | You can help yourself and also help others. I can say
               | with certainty that debating these points on HN isn't
               | going to have _any_ impact on the fairness of life.
               | Committing to action is an admirable thing, idle words
               | bemoaning the unfairness of life doesn 't help anyone.
        
         | Koshkin wrote:
         | Why exclude getting rich as a way to become able to afford?
        
       | jayd16 wrote:
       | Seems like the usual banal self affirmation post.
       | 
       | No luck? The author admits themselves that they needed an able
       | body and a good education, for example. Privilege and luck is
       | simply assumed and ignored. Just another example of survivor bias
       | looking backward and saying "I made it with no luck at all!"
       | 
       | Its not a real introspection despite the spilled ink.
        
       | paulpauper wrote:
       | >But the reality is everyone can be rich. We can see that by
       | seeing, that in the First World, everyone is basically richer
       | than almost anyone who was alive 200 years ago.
       | 
       | >200 years ago nobody had antibiotics. Nobody had cars. Nobody
       | had electricity. Nobody had the iPhone. All of these things are
       | inventions that have made us wealthier as a species.
       | 
       | >Today, I would rather be a poor person in a First World country,
       | than be a rich person in Louis the XIV's France. I'd rather be a
       | poor person today than aristocrat back then. That's because of
       | wealth creation.
       | 
       | Ppl keep making this argument,and even though it is not wrong,
       | rhetorically it is unpersuasive. People see the huge hospital
       | bill, having to negotiate with insurers, tuition going up, bills
       | unpaid, unrest and anger online and in poltics, etc. They feel
       | like things are getting worse on a relative basis even if the
       | iphone is more 10000x more advanced than a supercomputer 60 years
       | ago.
       | 
       | You cannot make such an assumption because the subjective 'you'
       | cannot experience both at once or compare and contrast the two.
       | Both have advantages and disadvantages: Being a king means more
       | status but also possibly dying of an infection and only having 0g
       | wireless. Higher social status means generally an improved well-
       | being.
        
         | teachingassist wrote:
         | > Today, I would rather be a poor person in a First World
         | country, than be a rich person in Louis the XIV's France. I'd
         | rather be a poor person today than aristocrat back then.
         | 
         | A rich person also had access to _near-unlimited amounts of
         | human labour_. Cleaning your house, cooking your meals,
         | tailoring your clothes, nursing your children.
         | 
         | There is a limit to how much that has been replaced by
         | technology.
         | 
         | An equivalent question is: Would you give up being a rich
         | person in 2021, to become a poor person in 2200?
        
           | webmaven wrote:
           | _> An equivalent question is: Would you give up being a rich
           | person in 2021, to become a poor person in 2200?_
           | 
           | That's only an equivalent question if it is being asked _in
           | 2200_.
           | 
           | From a 2021 vantage point, there are too many unknowns, as
           | many of the plausible scenarios for 2200 could be summed up
           | as variants of a Grim Meathook Future, even _without_
           | considering extreme scenarios like nuclear winter, asteroid
           | strikes, high mortality pandemics, grey goo, Curious Yellow,
           | alien invasions, robot uprisings, and so on.
           | 
           | Sticking just to business-as-usual extrapolation, life could
           | get very unpleasant for the poor within the next 80 years (or
           | shortly thereafter: 2200 could be pretty decent but if things
           | go to hell in 2202, you've still lost the gamble).
        
           | loxs wrote:
           | Also being able to procreate and reliably raise children
           | (also with physical help from servants) is probably a bigger
           | wealth enhancer, especially over generations.
           | 
           | In our modern world, being poor means you are going to either
           | not procreate, or suffer while doing so. An iPhone does not
           | cure that.
        
       | [deleted]
        
       | [deleted]
        
       | MrPowers wrote:
       | The book The Millionaire Next Door provided data to support "Seek
       | wealth, not money or status".
       | 
       | The book was written by finance professors who examined the
       | characteristics of actual millionaires. They found a lot of
       | people who appeared to be millionaires did not actually have a
       | net worth over a million dollars.
       | 
       | High status professional are expected to drive nice cars and live
       | in a big house. It's harder to be a millionaire if you're
       | spending a lot of money.
       | 
       | The authors were surprised to find that a lot of the Americans
       | with a net worth over a million did not fit any of the
       | "millionaire stereotypes" at all. They drive an old pickup truck
       | and drink Bud Light.
       | 
       | I like the Tweet thread, but prefer the Millionaire Next Door
       | cause it's backed up by actual data. It also seems like the Tweet
       | thread is focused on advice that'll get you a net worth in the
       | top 0.1%. The central premise of the Millionaire Next Door is a
       | lot of people have "regular jobs" and get rich (depending on your
       | definition of rich). See the janitor that amassed an $8 million
       | dollar fortune: https://www.cnbc.com/2016/08/29/janitor-secretly-
       | amassed-an-...
        
         | paulpauper wrote:
         | >High status professional are expected to drive nice cars and
         | live in a big house. It's harder to be a millionaire if you're
         | spending a lot of money.
         | 
         | houses and cars are assets. god why do people believe this crud
         | masquerading as science
         | 
         | >I like the Tweet thread, but prefer the Millionaire Next Door
         | cause it's backed up by actual data. It also seems like the
         | Tweet thread is focused on advice that'll get you a net worth
         | in the top 0.1%. The central premise of the Millionaire Next
         | Door is a lot of people have "regular jobs" and get rich
         | (depending on your definition of rich). See the janitor that
         | amassed an $8 million dollar fortune:
         | https://www.cnbc.com/2016/08/29/janitor-secretly-amassed-an-...
         | 
         | The only reason why the janitor story is newsworthy is because
         | of how exceedingly rare it is, not because this is something
         | that can be reproduced. no one publishes stories about lawyers,
         | execs, doctors, coders, bankers, etc. donating millions. You
         | have to donate tens of millions for Harvard to care.
        
           | dixie_land wrote:
           | personally I do not count my primary residence or my daily
           | truck assets even though they're paid off.
           | 
           | the reason being if I lose them I can't maintain my current
           | quality of life. so the rising valuation of housing is a net
           | negative, just more tax revenue for the state, doesn't do me
           | any favor
        
           | rrdharan wrote:
           | Cars are depreciating assets.
        
             | paulpauper wrote:
             | right, but they are assets nonetheless, which is why police
             | repossess them for asset forfeitures, and some cars even
             | gain value by becoming collectible
        
               | mNovak wrote:
               | Sure, but I think the point here is that given the option
               | to maximize investment in a depreciating asset (buy fancy
               | car) or minimize that investment (buy an inexpensive car)
               | and invest the difference elsewhere, it's better to do
               | the latter.
        
               | WalterBright wrote:
               | > some cars even gain value by becoming collectible
               | 
               | I've run some figures. Almost none pay back their
               | storage, maintenance, and tax costs, let alone the
               | opportunity cost of tying up the money.
               | 
               | I remember on an episode of "Antiques Roadshow" where
               | some guy had a couple Leica's his father bought in the
               | 1960s. They were mint, with all manuals, receipts, etc.
               | The amount they were worth was pretty large, and the guy
               | was ecstatic that he'd hit the jackpot.
               | 
               | The trouble was, if his father had put the same money
               | into the S&P500, a completely boring investment, it'd be
               | worth more today than those cameras.
        
           | MattGaiser wrote:
           | Houses and cars are assets, but the larger the house the
           | larger the non value generating expenditures such as taxes
           | and maintenance too.
           | 
           | Cars are also assets that do not appreciate as a general
           | rule.
        
           | [deleted]
        
           | ycombinete wrote:
           | Only if you own them, right? Otherwise they are just debt you
           | owe a bank.
        
           | swimfar wrote:
           | >houses and cars are assets.
           | 
           | I would guess that the majority of people do not own their
           | house outright. Just because you have a mortgage on a one
           | million dollar house, doesn't mean you have one million
           | dollars worth of wealth in your house.
        
             | sombremesa wrote:
             | Your mortgage is itself an asset. It's one of the best
             | hedges against inflation - as long as you don't fall into
             | the refi trap.
        
               | antihipocrat wrote:
               | Only if the interest rate is fixed, right? Is it common
               | for mortgage interest rates in the USA to be fixed at a
               | set percentage for the life of the loan?
        
               | dlp211 wrote:
               | Yes it is.
        
             | [deleted]
        
           | MrPowers wrote:
           | Do you have any resources or particular qualms with Thomas
           | Stanley's research techniques? To me, it seemed like he was
           | drawing conclusions based on data. Interested in why you
           | think it was "crud masquerading as science".
        
           | aidenn0 wrote:
           | A new car loses a significant amount of value as soon as you
           | drive it off the lot. If you finance it or lease it, then you
           | don't even own the asset.
        
             | shiftpgdn wrote:
             | This isn't really true anymore. I just sold a 2 year old
             | car with 25k miles on it for just 10% less than I
             | originally paid. Prior to that I sold a 1 year old car with
             | 18k miles on it for 1% less than I paid. You can also lease
             | new cars for a very low fixed rate which includes all
             | maintenance, insurance, etc. There is a value in having a
             | safe, new, reliable car.
        
               | mixmastamyk wrote:
               | Used cars are in high demand now because of covid-related
               | shortages.
        
               | ghaff wrote:
               | The last time I looked at used vehicle prices, they
               | didn't seem like great deals. Also, I think with modern
               | cars, the reality is that you can get the latest and
               | greatest and, after 10+ years, they're still pretty
               | darned reliable. The trick, especially in snow country,
               | is to get rid of them before rust-related issues, among
               | other things, become a problem. I have a 10 year old
               | vehicle and will probably think about replacing over the
               | next few years.
        
               | neogodless wrote:
               | The chip shortage has put a dent in new car supply,
               | driving prices up and having ripple effects on the used
               | car market. It's an unusual time and shouldn't be thought
               | of as the new normal.
               | 
               | Anecdotally my used car gained 25% in value over the last
               | six months. But if I sold it and still want something to
               | drive, I'm on the hook to buy a replacement that is also
               | priced higher than normal.
        
           | praptak wrote:
           | "houses and cars are assets"
           | 
           | Technically. What matters is that the house you live in and
           | the car you drive are _not investments_. Choosing expensive
           | ones is a bad decision if you want to accumulate wealth.
           | 
           | At best it's an opportunity cost - you are tying up money
           | which could become an investment. Practically it's much worse
           | - a car is practically guaranteed to lose most its value
           | within a few years. A house might gain value but if you want
           | to actually realize the gains you are left without a place to
           | live, so these gains are imaginary money.
        
             | crackercrews wrote:
             | > the house you live in and the car you drive are not
             | investments
             | 
             | The house? Probably not an investment. The land underneath
             | it? That's a very different story.
        
               | praptak wrote:
               | It can kinda-sorta become an investment but only if you
               | are prepared to move somewhere cheaper to retire.
        
               | crackercrews wrote:
               | You can also downsize and stay in the same area. Not
               | uncommon for empty nesters.
        
             | toto444 wrote:
             | If I am correct, in the national accounts, the house
             | households live in is considered an investment.
        
           | [deleted]
        
         | vmception wrote:
         | Its good insight but also recognize that all of these
         | distinctions are arbitrary.
         | 
         | The only usefulness in these observations is knowing that you
         | can keep raising the rent and there will still be people
         | willing to pay it. Too bad about the favela at the end of your
         | driveway though, but the millionaire janitor's children will
         | still be able to make rent.
        
         | draw_down wrote:
         | I think focusing on being a millionaire is not great, simply
         | because a million bucks ain't what it used to be. Some places
         | that will barely buy you a home. Top 0.1% doesn't sound so bad
         | to me.
        
         | onlyrealcuzzo wrote:
         | It's very easy to be a millionaire if you bought a big house or
         | a small house in a desirable area >5 years ago with the
         | exception of 2006-2008.
         | 
         | With the Fed pumping out money like candy - debt isn't exactly
         | a bad thing. It's basically a free asset.
        
           | paulpauper wrote:
           | I see this a lot on Reddit. People who bought homes a decade
           | ago using mortgages are now sitting on a nice amount of
           | equity.
        
         | question000 wrote:
         | I sometimes seriously wonder if you born around the 1960s, how
         | didn't you become a millionaire?
         | 
         | Rents were lower, wages were higher, safe investments like
         | T-bills and CD had higher yields, homes exploded in value,
         | education and health care were a fraction of the cost. If you
         | worked at even a minimum wage job you were on track to being a
         | millionaire just by putting money in the bank.
         | 
         | I asked my parents about this recently and it turns out they
         | actually are millionaires... I knew the were well off, but
         | thought they had a third or a quarter of that, I literally had
         | no idea.
        
           | psyc wrote:
           | My parents were born in the 40s, but they're roughly in the
           | generation you're talking about. They're still poor. My mom
           | didn't work much. My dad didn't make much. Neither were
           | financially savvy.
           | 
           | However, every last one of their 5 siblings is indeed a
           | millionaire after leading relatively modest middle-middle
           | class lifestyles. Maybe one of them you could call upper-
           | middle, but even they traded thriftiness in most areas for
           | the appearance of wealth in others.
        
           | andrewmcwatters wrote:
           | It's easy. How many people do you know spent every dollar
           | they made? I don't know a single person from the period of
           | 1950-1970 that didn't.
        
             | [deleted]
        
           | losvedir wrote:
           | Similarly for milennials graduating around ~2008 like me. I
           | had the good fortune to graduate right into the chasm of the
           | financial collapse, so was happy with my little $28k/yr job.
           | But with Boston not as crazy hot as it is now, and a
           | roommate, rent was only $600/mo, with no need for a car. That
           | meant I had plenty left over to put a bit in a low-cost index
           | fund (VOO) every month, and damn, with the S&P 500 going from
           | 800 then to 4,000 now... you can't help but end up with a
           | good chunk of change in the bank!
           | 
           | Graduates now are coming into a hot market, so on the one
           | hand they probably can't expect such appreciation on their
           | investments, but on the other you can get crazy high salaries
           | right off the bat! I seriously think it's far easier to
           | become a millionaire now than any other time in history.
        
             | antognini wrote:
             | If nothing else, inflation makes it easier to become a
             | millionaire over time. A millionaire in the early 1900s
             | would be equivalent to someone with $30 million today.
        
               | lukas099 wrote:
               | Yeah, with enough inflation 'millionaire' will mean next
               | to nothing.
        
             | [deleted]
        
             | toto444 wrote:
             | You got lucky but most people who graduate during a
             | financial crisis pay for it their whole life. It is harder
             | to get your first job so you get a not so good one and you
             | can easily get stuck in a suboptimal situation for years.
        
               | ghaff wrote:
               | In the dot-bomb era, a _lot_ of people ended up with job
               | offers rescinded or were laid off from their new jobs and
               | ended up at least underemployed for 3 or 4 years. I
               | consider myself _very_ lucky to have navigated that
               | period with a relatively low salary but no meaningful
               | time unemployed.
        
               | dan-robertson wrote:
               | That's likely true. It seems the people who graduated a
               | year or two later were similar in many ways except that
               | the job market was a lot better. And indeed many people
               | with the option chose to get a little extra education
               | like a masters degree rather than graduating for this
               | reason.
        
           | mcguire wrote:
           | My mother was the head teller at a bank, with 40+ years of
           | experience. When I graduated from college and got one of my
           | first jobs, I mentioned my salary. She (who had been retired
           | for several years at that time) told me she'd never made more
           | than $25,000 per year.
        
           | dan-robertson wrote:
           | Often the first trick is having children. It turns out to be
           | a good way to spend a lot of money. Especially having
           | relatively more children. Other ways are avoiding good
           | investments (it's already easy today and was even easier 40
           | years ago when brokerages were more high touch and it was
           | harder to find good information. Another aspect is being bad
           | at investing in the typical way: switching from equities to
           | bonds when there's a market crash), avoiding investing at all
           | (eg just putting money in a savings account), just spending a
           | lot of money on depreciating assets and not saving, and not
           | earning so much money in the early years when compounding
           | pays off the most or the later years due to seeking out
           | things other than high pay.
           | 
           | In many ways it's not so different from today.
        
             | ghaff wrote:
             | People could also end up with extended periods of
             | unemployment.
             | 
             | Inflation was brutal around 1980. (~14%)
             | 
             | Software development barely existed as a career option and
             | you almost certainly needed a degree to land a job.
             | 
             | When I graduated from engineering grad school in 1981, my
             | highest offer was $27K and that was a sector (oil biz)
             | which was pretty high-flying at the time. That's about $80K
             | today which is certainly not nothing but probably on the
             | low end of what a lot of software developers expect. (I had
             | the good timing to go back to grad school--which had been
             | in the plans anyway--just as the oil biz was entering one
             | of its cyclical downturns.)
        
               | WalterBright wrote:
               | > Software development barely existed as a career option
               | and you almost certainly needed a degree to land a job.
               | 
               | I graduated in 1979. Both statements are quite incorrect.
               | Software was paying well at the time, and was remarkable
               | as more than a few in it had no degree, and certainly not
               | a CS degree.
        
               | mcguire wrote:
               | " _When I graduated from engineering grad school in 1981,
               | my highest offer was $27K and that was a sector (oil biz)
               | which was pretty high-flying at the time._ "
               | 
               | Hey, I remember that! My mother was retired from the bank
               | she worked at for 40 years when the oil biz blew up in
               | the late '80s.
        
               | ghaff wrote:
               | This was in about 1984. But I was also in the offshore
               | drilling business which was especially sensitive to oil
               | prices given that offshore drilling was relatively
               | expensive.
        
           | ip26 wrote:
           | Single earner households were more common, mortgage interest
           | rates were above 10% for years, material goods were more
           | expensive. There was no YouTube for learning home or auto
           | repair. Cars weren't very reliable. Not all roses.
        
             | EVdotIO wrote:
             | Good luck repairing a car now. They are way more reliable,
             | and way more tolerant to owner neglect, but give me an old
             | BMW 2002 or VW bug and I can repair pretty much everything
             | in those machines with my Haynes manuals. Safety on the
             | other hand is orders of magnitude better today.
        
           | swiley wrote:
           | Condos are still cheap. People need to chill out with the
           | whole detached housing thing, it's not economical in the long
           | run (centuries) and we're rapidly approaching the point where
           | it stops making sense near the coasts of the US. A point many
           | countries have already reached.
        
             | ghaff wrote:
             | >Condos are still cheap.
             | 
             | Citation needed with respect to expensive cities. And you
             | don't even need to get very far away from many of those
             | cities--like an hour from Boston, for example--until land
             | isn't really a limiting factor.
        
         | drzaiusapelord wrote:
         | This also has something, if not, a lot to do with millionaire
         | farmers, mostly funded by incredible and often corrupt
         | subsidies from the government. So before subsidies and pork,
         | they would have made a more modest wage, but the game can be
         | abused pretty easily. If its not designed to be abused because
         | what benefits big agriculture also benefits medium sized
         | "family" farms. Family farms may actually be a series of a
         | dozen or more farms where the owning family does no actual
         | farming on their own, but still live a rural lifestyle
         | (pickups, bud light).
         | 
         | Secondly, its also skewed by government workers on fat pensions
         | who can become millionaires pretty easily due to these
         | collectively bargained benefits but also inflated salaries,
         | especially overtime which is often abused in government jobs.
         | 
         | Lastly, a lot of this is self-reporting. Some people like to
         | put on a modest front for their own reasons. The author got to
         | see their pickup truck and muddy workboots, but not their
         | Florida vacation home or Wisconsin lake house. Or the Corvette
         | under a cover in the 2nd garage.
         | 
         | So some of the advice is hard to handle and not applicable to
         | most. You can sort of FIRE your way into wealth and live like a
         | miserable miser or hope you were born into a socio-economic
         | culture where buying a lot of farmland is possible or getting a
         | public sector union job is possible.
        
         | Balgair wrote:
         | > It's harder to be a millionaire if you're spending a lot of
         | money.
         | 
         | "When most people say they want to be a millionaire, what they
         | really mean is "I want to spend a million dollars," which is
         | literally the opposite of being a millionaire."
         | 
         | -Morgan Housel
        
         | estaseuropano wrote:
         | There are various competing concepts that most of us conflate
         | erroneously most of the time:
         | 
         | * having much money in the bank * having much property/wealth
         | on the balance sheet * earning much * having an important role(
         | _)_ being able to afford all /most wants * living lavishly *
         | being happy
         | 
         | (*) Angela Merkel might be one of the most powerful world
         | leaders but earns 'only' around 20k a year. Greta Thunberg
         | moves mountains and earns little/nothing for it.
        
           | radiator wrote:
           | > Greta Thunberg moves mountains.
           | 
           | I can only regard this as a joke, and not a very successful
           | one, I am afraid.
        
             | rabuse wrote:
             | I'm with you there. Greta Thunberg has done what exactly?
        
           | pvitz wrote:
           | Per month...
        
           | sien wrote:
           | Merkel $US 426K per year.
           | 
           | https://paywizard.org/salary/vip-check/angela-merkel
           | 
           | She's the Chancellor of a country with a multi-trillion
           | dollar economy.
        
         | mtm7 wrote:
         | I'd heard about Millionaire Next Door for years and mistakenly
         | wrote it off as one of those scammy "buy my program" books
         | about visualization.
         | 
         | Then it was gifted to me, and boy, was I wrong! Couldn't put it
         | down. It's packed full of interesting tidbits and data. While
         | I'd highly recommend reading the book yourself, I also wrote
         | some notes on it here [0].
         | 
         | I'd love to see these same studies, but updated to 2021.
         | 
         | [0]: https://mtm.dev/millionaire-next-door
        
           | muhgarvey wrote:
           | I've got good news for you! There was another book written 2
           | years ago called Everyday Millionaires by Chris Hogan that
           | conducted a new study of millionaires. I think MND studied
           | 100 millionaires, while EM studied 10000.
           | 
           | https://www.ramseysolutions.com/store/books/everyday-
           | million...
        
         | throw0101a wrote:
         | > _The book_ The Millionaire Next Door _provided data to
         | support "Seek wealth, not money or status"._ [...] _I like the
         | Tweet thread, but prefer the Millionaire Next Door cause it 's
         | backed up by actual data._
         | 
         |  _Fooled by Randomness_ by Nassim Taleb, most /more famous for
         | _Black Swan_ , pokes holes in the methodology used in _TMND_ ,
         | specifically survivorship bias.
         | 
         | Another observation from _FbR_ :
         | 
         | > _I will set aside the point that I see no special heroism in
         | accumulating money, particularly if, in addition, the person is
         | foolish enough to not even try to derive any tangible benefit
         | from the wealth (aside from the pleasure of regularly counting
         | the beans)._
         | 
         | * https://www.goodreads.com/quotes/553605-i-will-set-aside-
         | the...
        
           | shipman05 wrote:
           | Personally, I find living well below my means leads to a
           | great deal of happiness. I never have to stress about money.
           | Never have to worry about losing my job (as long as it isn't
           | a long term loss). I can make future career decisions based
           | on quality of life a not raw salary.
           | 
           | It's an opportunity cost like anything else, but I would
           | argue having more wealth than you need is a tangible benefit
           | all its own.
        
           | lukas099 wrote:
           | Taleb should know that the benefit is having f*k you money. I
           | suppose that once said money is obtained, there may be no
           | greater advantage in accumulating more.
        
         | roughly wrote:
         | > High status professional are expected to drive nice cars and
         | live in a big house. It's harder to be a millionaire if you're
         | spending a lot of money.
         | 
         | > The authors were surprised to find that a lot of the
         | Americans with a net worth over a million did not fit any of
         | the "millionaire stereotypes" at all. They drive an old pickup
         | truck and drink Bud Light.
         | 
         | So do you think people want the money, or do they want a big
         | house and a fast car?
        
           | benhurmarcel wrote:
           | Exactly the reason I didn't like "The millionaire next door".
           | For me it misses the point completely.
           | 
           | This book assumes that people want to be "millionaire" in
           | order to stare at a 7 digits number before they die.
        
             | lukas099 wrote:
             | That's your prerogative, and there's nothing wrong with
             | that. Others may prefer the freedom and stability afforded
             | by a large amount of wealth-generating assets.
        
               | [deleted]
        
       | Opt_Out_Fed_IRS wrote:
       | Did Naval steal this from Frank Underwood?
       | 
       | "Money is the McMansion in Sarasota that starts falling apart
       | after ten years. Power (or status) is the old stone building that
       | stands for centuries"
       | 
       | It's the same thing he's saying here, but like the guy Frank
       | Underwood was talking to, Naval doesn't recognize that financial
       | wealth is only more secure and fungible than social status if you
       | can manage to move said financial wealth around before stuff hits
       | the fan. So many examples to cite, ranging from Venezuela, to
       | Zimbawe to Cyprus.
       | 
       | And mind...stuff inevitably always hits the fan, when stuff hits
       | the fan you want to have loyalists who'd defend you against your
       | enemies.
       | 
       | The whole reason why all investigation relating to Trump will end
       | in a nothing burger. He has 75m people who follow him and the
       | political cost of doing anything to him is simply too high.
       | 
       | Also same reason why Musk can't be touched even though he
       | violates the law every day, he has a huge cult following and the
       | political cost of doing anything to him is again simply too high.
       | 
       | Ideally you make money by lying low, then diversify (unless you
       | are a hedge fund manager, in that case you are already
       | diversified), then use money to build a following.
       | 
       | I say ideally because you need smart people around to make money
       | and smart people tend to be repulsed by people who are
       | hyperfocused on building a cult following and a great social
       | status (exhibit A : the turnover rate at Tesla)
        
       | dandanua wrote:
       | I don't see much logic in this wall of text.
       | 
       | "Seek wealth, not money or status". What? To get wealth you need
       | money to buy it. To get to the point B you have to pass the point
       | A. That's why people are seeking money.
       | 
       | Secondly, it's claimed that those who say "We don't want money"
       | are playing another game - seeking high social status. That's
       | another perverted logic. Seeking high social status is the most
       | reliable way to have a lot of money without doing anything
       | useful. That's why corruption is everywhere - people go to power
       | to be rich, not because they want or able to solve societal
       | problems. People who _really_ don 't seek richness don't seek
       | high social status either.
        
         | redisman wrote:
         | The concepts are also linked together. Having lots of money
         | automatically means having high status unless you actively
         | reject it. If you think you don't have status but have lots of
         | money then you merely need to go to places that only people
         | with lots of money can get to and see how you get treated.
        
       | jollybean wrote:
       | The author is crossing streams with 'value capture' and 'value
       | creation', they are not the same thing.
       | 
       | Investing does create value, but a lot of it is just poker. Being
       | better at poker than a fool is a net zero-sum win for society.
       | 
       | Though most startups do create some value, it's also questionable
       | in the big picture.
       | 
       | And a huge amount of value is created by individuals who are not
       | able to capture the surpluses.
        
       | TheOtherHobbes wrote:
       | This says something useful in among the stock nonsense - which is
       | that wealth is not about what you own or how much you can spend,
       | it's about _personal freedom._
       | 
       | The interesting corollary is that in a capitalist economy hardly
       | anyone is free. _You "win" freedom by buying it._ And that's what
       | wealth is really for.
       | 
       | This is why "We're all rich now compared to people two centuries
       | ago" is nonsense. We're not, because the odds are good that we're
       | more or less similarly unfree, especially if we're at the bottom
       | of the heap and working the proverbial two or three jobs. Owning
       | an iPhone doesn't change the fact that our time is almost wholly
       | owned by others.
       | 
       | It's also why it's impossible for a majority of people to be
       | free. Someone has to do the actual work that keeps the lights on
       | and food in the shops. Most people won't do that work
       | voluntarily, so there has to be social leverage - implemented
       | with loss of freedom - to force them into it.
       | 
       | And it has to happen. Passive investing is worthless when there's
       | nothing concrete to invest in. Corporate entrepreneurship is
       | useless if there is no activity to manage, control, and profit
       | from.
       | 
       | The exceptions to this are genuinely creative activity.
       | Invention, innovation (to a smaller extent), and cultural
       | creativity are all individually powerful and can be
       | disproportionately valuable, socially and economically.
       | 
       | Coincidentally, they also attract more than their fair share of
       | parasitic activity which seeks to capture their value for the
       | benefit of others.
       | 
       | But more - some people _need_ to have these differentials in
       | personal power. They lean towards narcissism, and it 's important
       | for them to feel more powerful than others.
       | 
       | They will never, ever allow an economic system which doesn't
       | constrain the freedom of those they consider inferior. It doesn't
       | matter if it's run by machines or AI or any other magic
       | technology. It's fundamental to their psychology to keep others
       | in a one-down position, and they experience any threat to this as
       | an unbearable narcissistic wounding.
       | 
       | Inequality is not primarily an economic problem. It's a
       | psychological issue - a public mental health issue, where the
       | _point_ of inequality is to allow unhappy rather damaged people
       | to feel better about themselves.
       | 
       | This is orthogonal to issues of building, researching, inventing,
       | and generally getting shit done collectively. Without
       | narcissistic friction all of those would proceed more quickly and
       | smoothly, with astoundingly positive consequences.
        
       | abootstrapper wrote:
       | Pseudo intellectual garbage, and the tweets read like if Ayn Rand
       | wrote fortune cookies.
        
       | slumdev wrote:
       | > The purpose of wealth is freedom; it's nothing more than that.
       | It's not to buy fur coats, or to drive Ferraris, or to sail
       | yachts, or to jet around the world in a Gulf Stream. That stuff
       | gets really boring and stupid, really fast. It's about being your
       | own sovereign individual.
       | 
       | This makes sense.
       | 
       | > Today, I would rather be a poor person in a First World
       | country, than be a rich person in Louis the XIV's France. I'd
       | rather be a poor person today than aristocrat back then. That's
       | because of wealth creation.
       | 
       | I'm not sure we can have it both ways.
       | 
       | If the purpose of wealth is to be sovereign and have the freedom
       | and time to pursue my own interests, whatever they are, then it's
       | better to be a wealthy person at any time in history than to be a
       | poor person at any other time in history.
       | 
       | A poor person today is going to spend 8-12 hours per day, 5-7
       | days per week, working and commuting, depending on how many jobs
       | they have, just to pay for necessities. An aristocrat in any time
       | period is going to have far more time to do any of the things
       | that fulfill him. Air conditioning, health care, and Netflix
       | don't make up the difference.
        
         | lukas099 wrote:
         | Not dying early of childbirth or plague might make up some of
         | the difference, though.
        
       | jcoq wrote:
       | This screed could be the keynote speech at a MLM conference.
        
       | fallingfrog wrote:
       | "Wealth is assets that you earn while you sleep"
       | 
       | Sorry, but _somebody_ is still producing that wealth through
       | their labor. It's just not _your_ labor. Wealth in the sense that
       | the author is using the word is when you collect the fruits of
       | _other people's_ hard work.
       | 
       | No matter how you set up your economy, only a small number of
       | people can live like that, so no, by definition this is not a
       | strategy that _everyone_ can use. Otherwise, who would be doing
       | all the actual work?
        
         | fallingfrog wrote:
         | As a corollary, I imagine that if I was a member of the class
         | that owns things but does not work, I would not sleep well at
         | night. After all, those who own wealth _need_ those who work.
         | The ones who work know how to make things, grow food, set a
         | broken bone, build bridges, change diapers, do all the things
         | that need to be done, but those who own things can't do any any
         | of that stuff on their own. In a way they're like helpless
         | children. They need us, for everything.
         | 
         | But do we need them? No. This article is literally saying that
         | the property owning class can perform their function in society
         | while they're asleep. Well, if that's true then they're not
         | contributing anything of value.
         | 
         | If I were one of those who own wealth, I would worry greatly
         | that one day the people who work would figure this out. That's
         | the sword of Damocles that hangs over the heads of the wealthy.
        
         | jlawson wrote:
         | >Sorry, but somebody is still producing that wealth through
         | their labor.
         | 
         | No, not necessarily.
         | 
         | E.g. You write a novel. It's selling every day online. Whose
         | labor are you collecting?
         | 
         | If you say the customers' labor at their jobs - Yes, if you
         | trace any chain of transactions far enough you can eventually
         | find someone who did some labor. This is kind of meaningless
         | though. It's true even if there's only one working human on the
         | planet.
         | 
         | Basically, you're restating the labor theory of value which is
         | generally not considered credible by economists.
        
           | moate wrote:
           | How much of the economy would you estimate works on the
           | "write a novel, sell it passively on a website you
           | created/host/etc. yourself" model? Is this common in your
           | mind or a very narrow example to make a point online?
        
         | dave333 wrote:
         | The key is that machines (bulldozers, airplanes, websites etc.)
         | multiply work to produce more wealth per unit of labor based on
         | a productivity multiplier. Labor is a free market that can fail
         | due to wages being insufficient or can be distorted by a
         | minimum wage that may reduce demand for work to the point of
         | significant unemployment. Need to model the whole system in
         | detail to reach any conclusions. Single sentence observations
         | are nearly always wrong in some respect.
        
       | christiansakai wrote:
       | I love it how Americans and first world countries native born
       | just love to bash these kinds of articles.
       | 
       | While people like me who came from 3rd world country that
       | immigrated to US and first world countries can relate with posts
       | like these.
        
         | xyzelement wrote:
         | Exactly! I used to travel a lot for work and talk to Uber
         | drivers all over the country.
         | 
         | The immigrant ones had stories like "I own 3 of these cars, so
         | 2 guys drive for me, and my daughter is in nursing school" or
         | my favorite "I just got hired in Columbia University as a
         | janitor so I can get my MBA there for free". While the
         | Americans were just kinda resigned to driving the Uber.
         | 
         | Immigrants are self selecting - we are people who chose to make
         | moves, get off our asses to make something of ourselves .so of
         | course the idea of accreting valuable skills and assets is
         | going to resonate with us.
        
           | christiansakai wrote:
           | I love immigrant stories! U know what we have in common as
           | immigrants. We just love to work and make money, to see that
           | our hands actually produce money that goes into our bank
           | statement just brings joy. It is almost not about the money
           | itself but the honor that we get knowing that people
           | appreciate our service.
        
           | lotsofpulp wrote:
           | > we are people who chose to make moves,
           | 
           | It's easier to make a move when you have nothing to lose, or
           | have a fallback option in your home country.
        
             | christiansakai wrote:
             | FYI, usually in 3rd world countries don't have unemployment
             | benefit, govt support or bankruptcy laws. Not sure what
             | fallback you meant here.
        
             | xyzelement wrote:
             | You probably can't imagine the kind of initiative it takes
             | to leave where you are to start fresh somewhere else.
             | THAT's the self-selection I am talking about.
        
       | nicomeemes wrote:
       | > Anyone can come here, be poor, and then work really hard and
       | make money, and get wealthy.
       | 
       | While I agree with _some_ of the article, I feel like this
       | statement simply isn 't true anymore. Probably for
       | software/hardware engineers, but there's a shrinking middle class
       | in America who can't afford a house despite working multiple jobs
       | and doing everything right. My grandfather worked at Safeway and
       | could support my mom and save up to buy a house. Seems like this
       | would be impossible now. I don't know what the crux of the
       | problem is, but something is definitely wrong with our system.
        
         | bombcar wrote:
         | It can be done but it requires sacrifices that not everyone
         | will be willing to do.
         | 
         | For example, choosing a location "in the sticks" can certainly
         | help.
        
         | mixmastamyk wrote:
         | Lack of supply, increasing demand. A system of government
         | regulations designed to increase scarcity, while shuffling
         | resulting gains to property owners.
        
       | amelius wrote:
       | > Wealth is assets that earn while you sleep
       | 
       | Rent seeking is not regarded very highly on HN.
        
         | oogabooga123 wrote:
         | Bearing risk is not rent seeking, passive income does not imply
         | rent seeking
        
         | 127 wrote:
         | There are different levels of rent seeking. For example I don't
         | think there's anything wrong with loaning money for people who
         | will use it to start a productive business.
         | 
         | There's a lot wrong with corruption, where laws and politicians
         | are bought with money. There's a lot of wrong with regulatory
         | capture, where market regulation is distorted in a way that
         | makes competition against the status quo next to impossible.
        
         | jl2718 wrote:
         | I think the negative aspect of rent-seeking is not so much
         | passivity, but the lack of value added.
        
           | Koshkin wrote:
           | Depends on what you mean by "value," I guess, but it seems to
           | me that being an effective participant in market economy is
           | impossible without bringing some kind of value to the table
           | (if only indirectly or as a side effect).
        
           | marcosdumay wrote:
           | It's a very new phenomenon that those two things are
           | different, and it is still the case that they only differ on
           | very few, very small niches.
           | 
           | But yes, that seems correct to me.
        
             | jl2718 wrote:
             | I don't think so. Somebody once had to build the houses
             | that they were collecting rent on. Time passes and what
             | used to be value added becomes a simple matter of capital
             | invested or inherited.
        
         | 2ion wrote:
         | What a mindless comment.
         | 
         | Realistically speaking, rent seeking is the only way present
         | young and future generations are able to participate in
         | economic "growth" effectively. The human population grows, but
         | the chance to participate in the industries and locations with
         | the highest ROI on human capital does not. In fact, wage
         | stagnation and inflation have stunted ROI on human capital in
         | many non-growth industries in developed countries already.
         | 
         | In fact, in my country where given the current trajectory of
         | public policy I will see a huge net loss in pension benefits
         | despite paying into the system more than any previoius
         | generation in real terms already, without rent seeking through
         | investing, I would literally end up poor as fuck and a slave to
         | the state and would never have a chance to stop working short
         | of just dying.
         | 
         | Rent seeking is how the current system works, get over it.
        
           | GoodJokes wrote:
           | What if, and hear me out, we changed the system so it isn't
           | the only way to accumulate wealth. You can walk and chew gum
           | at the same time. At least I think so. One can decry
           | immorality of rent seeking and understand it is a reality
           | today.
        
         | [deleted]
        
         | nlitened wrote:
         | Most of active HNers are employed in rent-seeking SaaS
         | companies
        
           | xyzzyz wrote:
           | "Rent seeking" has a specific technical meaning, which is not
           | the same as "collecting rent". Most SaaS companies are by no
           | means rent seeking, and in fact it's hard for me to come up
           | with an example of one that does it.
        
             | edoceo wrote:
             | Ticket Scalpers - my favourite example of rent-seeking
        
               | thegrimmest wrote:
               | Aren't ticket scalpers enabled by artificially low ticket
               | prices?
        
               | edoceo wrote:
               | Sorta. But their real m/o ("value add") is they
               | aggressively purchase the "fruit" (best seats) which
               | pushes out regular market-price buyers. Then hold. Then
               | sell at 5x to 120x list price. Its a game, similar to
               | equities but perishable. Their only real service is
               | standing in line in front of you to corner and add
               | pressure.
        
         | rexreed wrote:
         | Are you speaking on behalf of the entire HN community? I didn't
         | realize we all spoke with one voice.
         | 
         | If anything, the HN groupthink is counterproductive. I find
         | that the true value of the HN community is the diversity of the
         | voices and opinions here, not what "all of HN" thinks, which is
         | not always correct (and often not).
        
           | fartcannon wrote:
           | I try to read comments that speak for a group like the parent
           | has as this, "From my perspective a nonzero number of people
           | on HN think..."
           | 
           | Because in reality, it only takes a few undisputed replys or
           | posts to make someone assume it's a ubiquitous idea.
        
             | rexreed wrote:
             | But as you can see from the responses to the GP comment,
             | many nonzero people on HN think and believe the contrary.
             | 
             | So, the comment attempts to impose on the reader the
             | perception that any contrary belief to what the commentary
             | implies is a "normal HN opinion" is something that should
             | not be held with credibility.
             | 
             | It's counterproductive to say that some non-zero group of
             | people on HN believe something when a possibly equal or
             | greater non-zero group believe something to the contrary.
             | It makes me wonder if the point of the comment is to
             | suppress contrary positions.
        
               | fartcannon wrote:
               | Agreed. I was just try to help with framing if it was
               | bothering you. If instead you're trying to help make the
               | site better, well, more power to you.
        
         | ashneo76 wrote:
         | Rent seeking is how FAAANG companies make money. Secure the
         | supply chain, low cost and cheap labor, fight right to repair,
         | fight what does it mean to own a streaming movie and then
         | charge exorbitant prices for services.
         | 
         | They exploit people on both sides of their business: consumers
         | and laborers
        
           | 0xbadc0de5 wrote:
           | I find it interesting how many individuals appear to both
           | love and hate FAAANG companies. They love the products but
           | seemingly hate the fact that the companies exist.
           | 
           | Would it not be equally fair to claim that both consumers and
           | laborers also "exploit" FAAANG companies to their own
           | benefit? Take Amazon as a single example - if not for the
           | Amazon fulfilment centers, where else would these workers
           | find employment? And if the claim is that it's such a
           | terrible work environment, why not work somewhere else? Fact
           | is, they are employed there of their own volition so clearly
           | there must be some advantage over potential alternatives.
           | Comparing Amazon to a hypothetical "perfect" employer is a
           | straw man, a more fair comparison is to existing alternatives
           | (including unemployment).
           | 
           | Would it not be fair to also suggest that Amazon has,
           | directly and indirectly, contributed to raising more people
           | out of poverty than any other company in history? They have
           | opened the global supply chain to everyday consumers on a
           | massive scale. Because of this, one can now buy a 65" flat
           | screen television for $500 USD - a price point within reach
           | of many low income households and no longer considered a
           | luxury purchase. And the factories where these are made are
           | paying much higher wages in much better working conditions
           | than existed previously. And they are continuously improving.
           | 
           | Or consider AWS - this alone has enabled countless startups
           | to succeed with virtually no upfront infrastructure costs. If
           | AWS disappeared tomorrow, how many HN readers' jobs would be
           | in serious trouble. How many newly minted millionaires owe
           | their success, in some small part, to the services that AWS
           | provides?
           | 
           | The point is, this is a give and take situation. Sure FAAANG
           | companies make money. Because we give it to them,
           | voluntarily, because we have decided that the benefits they
           | bring to us are worth more than the cash we exchange for it.
           | 
           | If one has an issue with how any of these companies conduct
           | themselves, the obvious response is to take your business
           | elsewhere. If enough people agree, the business will adjust
           | or a competitor will take its place.
           | 
           | I don't personally care much for companies making it
           | impossible to repair their products, but I'm also of the
           | opinion that I can vote with my feet and with my money to
           | help change that.
        
             | bumby wrote:
             | > _Fact is, they are employed there of their own volition
             | so clearly there must be some advantage over potential
             | alternatives._
             | 
             | There was a good article on HN a few weeks back that
             | interviewed people in Amazon's warehouses as the union
             | debate heated up in the US. What struck me was that many
             | were there because they didn't have other options. Some
             | were previously working very middle class jobs which no
             | longer existed because they were outsourced and now were
             | making much, much less because there were no good
             | alternatives. People choosing the lesser of two evils
             | doesn't make for a compelling argument for the virtues of
             | them acting out of their own volition. And that
             | globalization that brought about that point may very well
             | have lifted others elsewhere out of poverty but it seems to
             | conflict with the article's claim about non-zero sum wealth
             | generation.
        
             | potmacure wrote:
             | >if not for the Amazon fulfilment centers, where else would
             | these workers find employment?
             | 
             | In the brick and mortar stores that wouldn't have closed if
             | Amazon wasn't there.
             | 
             | >it's such a terrible work environment, why not work
             | somewhere else?
             | 
             | Because Amazon destroyed these somewhere elses.
             | 
             | >Because we give it to them, voluntarily, because we have
             | decided that the benefits they bring to us are worth more
             | than the cash we exchange for it.
             | 
             | This decision is wrong though. Humans are pretty bad at
             | taking externalities into account.
             | 
             | >I can vote with my feet and with my money to help change
             | that.
             | 
             | You can't when existing players use their established
             | position as a way to prevent new players from entering the
             | market.
        
               | 0xbadc0de5 wrote:
               | >In the brick and mortar stores that wouldn't have closed
               | if Amazon wasn't there.
               | 
               | This seems unlikely, online shopping is far too
               | convenient and provides far too much value for brick and
               | mortar stores to compete. However, that's not to say that
               | these stores necessarily went out of business. A savvy
               | proprietor would see the writing on the wall and move
               | their operations online.
               | 
               | >Because Amazon destroyed these somewhere elses.
               | 
               | Why Amazon? Would it also not be fair to say that
               | consumers destroyed the somewhere elses by shopping
               | online instead of on main street?
               | 
               | >This decision is wrong though. Humans are pretty bad at
               | taking externalities into account.
               | 
               | That's the thing about freedom - when people are free to
               | make their own decisions, one must accept that they may
               | occasionally make (to some observers) irrational or
               | counterproductive decisions. That does not mean that
               | removing said freedoms is an acceptable solution.
               | 
               | >You can't when existing players use their established
               | position as a way to prevent new players from entering
               | the market.
               | 
               | This statement holds. Anti-competitive behaviour is
               | counterproductive and should be discouraged because it
               | has a negative impact on the free market.
        
         | LoveMortuus wrote:
         | I don't think one should exclude a viable option for profit,
         | just because of some poor actors.
         | 
         | I think rent can be a beautiful way to earn profit and to
         | connect with people.
         | 
         | If you are earning with rent it doesn't necessarily mean that
         | you're evil and that you're abusing your "customers" with
         | unreasonable demands or unexpected surprises.
        
       | vladmk wrote:
       | " Wealth is money in the bank that is reinvested into other
       | assets and businesses."
       | 
       | So is it money in the bank then or is is it money reinvested? Or
       | all of the above? He doesn't really clarify.
       | 
       | Am I the only one that found holes in his thinking?
       | 
       | Example: the more houses we build the cheaper it will be...fact:
       | there is more houses today than at any other time in American
       | history. House prices are only increasing...buying up a scarce
       | resource like land doesn't help us create more of it, what helps
       | us create more is investing in the resource.
       | 
       | I'm not trying to put Naval down since I do admire him and some
       | of what he says, I just can't put him on this guru pedestal
       | others are...
       | 
       | I think true wealth is being able to control your time however
       | you'd like. Everything else after that is about power.
        
       | 11thEarlOfMar wrote:
       | It is true that becoming rich requires luck. So does completing
       | college, landing a plumbing apprenticeship, or learning how to
       | race a horse.
       | 
       | I see life like I see poker. You need to learn enough about the
       | rules to know when the odds are in your favor, then make your
       | bets to take full advantage of the odds. In life, raising your
       | skills in specific and deliberate areas will improve your odds.
       | Then, you have to have enough agency to make the bets.
       | 
       | Is that a guarantee that you'll achieve wealth? Certainly not.
       | But you can learn how to improve your odds, and then take actions
       | to put yourself in that improved position, and then be persistent
       | and attentive to your progress. Analyze, adjust, optimize.
       | 
       | Persistence is the thing, and by persistent, I mean over decades.
       | If you're a solid poker player, you can make money over time. You
       | may or may not ever have the right luck at the right time to win
       | a major tournament, but you can still make a living at the
       | vocation you choose. It's the same in building wealth. Have a
       | deliberate plan that his high probability, but be open to
       | identify windfall opportunities, and make a bet if you see the
       | odds are worthwhile.
       | 
       | There were a few deliberate choices I made to grow wealth. Each
       | also took some amount of luck to transpire:
       | 
       | - Choice: I put myself through college. My parents couldn't help,
       | I had to pay for it myself.                  Luck: There were
       | state and federal loan and grant programs to help with the cost,
       | or I'd never have finished.           - Choice: I decided to
       | major in computer science instead of music.              Luck: My
       | dad's advice was that I'd be able to afford a more comfortable
       | life in computer science. He'd chosen music.           - Choice:
       | I made the choice to move to Silicon Valley from the Midwest.
       | That's where technology seemed to happen first.             Luck:
       | The only way I could do that was by living rent free for 3 months
       | with a friend in Santa Clara that I happened to know.           -
       | Choice: I intentionally asked by boss for more responsibility.
       | Luck: The company was in a growing market and needed engineering
       | leadership. Promotions and raises followed.           - Choice: I
       | developed a business plan to open a new sales/services office in
       | a foreign country.             Luck: I had spent a lot of time
       | traveling to that country on business and made friends with the
       | people who established the business based on my plan and hired
       | me. It was a lucrative choice.           - I chose a lifestyle
       | that left extra $ in the bank each paycheck, and then invested
       | that money.             Luck: My partner happened to have
       | conservative approach to money management, and I listened to her.
       | 
       | Each step was about improving my odds. Once I determined what to
       | do, I had to find a way to make it happen, even if it took other
       | people's assistance in some way. Finding that assistance at hand
       | was the lucky part. I just had to have the agency accept it and
       | act.
        
       | snickersnee11 wrote:
       | There's is for sure some good advice, but most of this is just
       | useless word play, which does not give you any directions, but
       | gives you a false sense of "life and society understanding". If
       | you don't know that reading and work makes you wealthy, you're a
       | probably a fool. It's important to tell people they can unite and
       | work towards common good of humankind, but you should not title
       | it "How to Get Rich".
        
       | exabrial wrote:
       | I disagree that wealth is limited (we can mine an exhaustless
       | supply of minerals for instance). But he nails everything else.
        
         | cweill wrote:
         | I missed the part where he says that wealth is limited. Doesn't
         | he says that wealth creation is a positive-sum game (I.e. 1+1=3
         | thanks to automation and leverage), as opposed to status which
         | limited and its pursuit is a zero-sum game? Wouldn't that mean
         | that wealth is unlimited?
        
         | lwouis wrote:
         | > we can mine an exhaustless supply of minerals for instance
         | 
         | Humanity is headed towards shortages of many critical metals,
         | such a copper, within this century, with consequences on price
         | and availability already felt and predicted to be a major geo-
         | political issue within a few decades
        
       | vincent-toups wrote:
       | This has a real "I've read Rand and I'm using cocaine" vibe.
        
         | ProjectArcturis wrote:
         | Yeah, he's correct you'll never make it to the top 0.01%
         | working a job, but the jabs at socialists and the "makers vs.
         | takers" are some Level 1 right-wing talking points. There
         | certainly are makers and takers in our society, and the biggest
         | takers are not the single parents getting $200 a month in food
         | stamps, it's the capitalists whose businesses depend on
         | cheating their workers out of wages, polluting the environment,
         | and/or getting sweetheart government deals.
        
         | redisman wrote:
         | This article seems to be mostly very mediocre social
         | commentary. Reminds me of an angsty high schooler (who's
         | somehow rich and defending their position) describing their
         | view of society
        
           | jlawson wrote:
           | Naval grew up poor in India.
        
             | redisman wrote:
             | I mean he's defending his current status as a rich person.
        
             | lotsofpulp wrote:
             | I feel like a lot of the immigrants I meet from India are
             | landowners there and not exactly the lower class. They all
             | talk about having people to clean their houses and do their
             | laundry.
             | 
             | Not rich per American standards, but definitely people that
             | have an option if their gambles don't work out.
        
           | xyzelement wrote:
           | I am going to venture a guess that both you and the parent
           | you are replying to belong to exactly the same economic
           | strata as your parents. You haven't had to build yourself up.
           | 
           | For someone who has built their life from 0 dollars broke ass
           | immigrant to being in the 1%, Naval's narrative resonates as
           | exactly the right advice.
        
             | redisman wrote:
             | I make more money than both my parents combined and I'm an
             | immigrant if that's somehow relevant.
        
       | gricardo99 wrote:
       | This reads like a parody. He's trying to raise the status of tech
       | entrepreneurs, painting it as the only truly virtuous endeavors,
       | while literally saying he's not into playing status games.
       | 
       | But there are plenty of other gems in here too. Some come off
       | like silly ignorance, others as callous or at least very tone
       | def.                 You have a ton of parasites in you, who are
       | living off of you.
       | 
       | Umm, no I don't. If you're talking about micro fauna, that's not
       | parasites. Otherwise, Dude, you need to get that checked.
       | It's not about taking something from somebody else. It's from
       | creating abundance.
       | 
       | But "disruption" inherently leads to winners and losers. There is
       | a transfer from one group to another. Sure the end state may have
       | more abundance than before but unless you address the disruption
       | to those that lost out, you'll have people, perhaps many, who
       | feel left out, impoverished and distrust or despise the system.
       | You can label them as "status" seeking haters of wealth creation,
       | it's a nice simple narrative, but divisive and counter productive
       | to actually making the system work for more people and generate
       | more wealth.                 Today, I would rather be a poor
       | person in a First World country, than be a rich person in Louis
       | the XIV's France.
       | 
       | You have no understanding of the plight of the poor and homeless
       | in America. French countryside estate with a dedicated staff to
       | provide for all your needs, or the homeless guy standing on the
       | corner with the "hungry" sign? Of course the latter is often
       | afflicted with mental illness and substance abuse, but those
       | factors are in no small part driven by our society's abundance
       | distribution choices. Or is the "hungry" sign just an attempt to
       | seek higher status? I think it's just food.                  We
       | would all be living in massive abundance.
       | 
       | What makes you so sure the abundance would be so evenly or widely
       | distributed? The abundance we have now is becoming less and less
       | evenly distributed, so jumping to this conclusion just hand waves
       | past some big hurdles in getting there.                  It gets
       | hijacked by improper pricing of externalities. It gets hijacked
       | by improper yields, where you have corruption, or you have
       | monopolies.
       | 
       | Then perhaps the journalists that criticize tech entrepreneurs
       | are actually functioning as a break against this hi jacking?
       | "Status" and "wealth" games not so clearly delineated huh?
       | Capitalism is not even something we discovered. It is in us in
       | every exchange that we have.
       | 
       | You can literally say this about any human behavior. Again, this
       | just hand waves and papers over difficult and complex choices. It
       | just assumes his world view is inherent and virtuous.
       | We are the only animals in the animal kingdom that cooperate
       | across genetic boundaries.
       | 
       | False. And easy enough for anyone to search on this topic and see
       | so.                  Everybody can be successful. It is merely a
       | question of education and desire.
       | 
       | Wow. If there was any doubt before, it's now obvious we're in a
       | complete fantasy at this point. There's no bias, no prejudice, no
       | advantages that one group has over another. Wait, well except
       | education. Clearly we need to fix that because education isn't as
       | easily accessible to all, right? But that's no big deal.
       | I'm not talking about monopolies. I'm not talking about crony
       | capitalism. I'm not talking about mispriced externalities like
       | the environment.
       | 
       | Yep, never mind. You're not talking about the real world.
       | 
       | It goes on and on like this but Im done here.
        
         | [deleted]
        
       | gambiting wrote:
       | "You want wealth because it buys you freedom--so you don't have
       | to wear a tie like a collar around your neck; so you don't have
       | to wake up at 7:00 a.m. to rush to work and sit in commute
       | traffic; so you don't have to waste your life grinding productive
       | hours away into a soulless job that doesn't fulfill you."
       | 
       | Am I the only one here who doesn't have any kind of "wealth" as
       | defined by the author, yet doesn't suffer from any of the above?
       | We don't wear ties, I don't have a commute, and I really enjoy my
       | job. Is investing any of my time(as in - sacrificing time that
       | would be otherwise spent with my family or just on relaxing) in
       | "wealth" still the right choice?
        
         | xyzelement wrote:
         | Honestly, it's a metaphor. It makes sense to try and understand
         | the intended lesson. The fact that you don't actually wear a
         | tie at work is kinda besides the point.
         | 
         | I LOVE my work. But I also LOVE the idea that I can stop
         | working if I wanted to, at least for a while, because of
         | savings.
        
         | lukas099 wrote:
         | That's awesome! Unfortunately it isn't true for a lot of us.
        
         | [deleted]
        
         | neogodless wrote:
         | If money was no object, would you live your life exactly the
         | same way?
         | 
         | But to your point, if you live your life in a way you hate just
         | to accumulate money, you're also doing it wrong (in my
         | opinion).
         | 
         | Try to accumulate money through work you enjoy, but if you can
         | build up wealth to give you additional choices and control over
         | how you use your time.
        
       | paulpauper wrote:
       | >Ending up in an orange jumpsuit in prison or having a reputation
       | ruined is the same as getting wiped to zero--so never do those
       | things.
       | 
       | Only if you lose everything too or get a really long sentence. I
       | think Michael Milken is an obv. counterexample to this, having
       | kept his wealth and reputation. Jordan Belfort got a lucrative
       | book, movie and consulting gig from his behavior. many others.
        
       | [deleted]
        
       | vlovich123 wrote:
       | > But for the fourth kind of luck, there isn't a common cliche
       | out there that matches the unique character of your action
       | 
       | "Right spot, right time"
       | 
       | I think there's a lot of flaws in the reasoning and
       | characterizing anyone who isn't prioritizing wealth creation (or
       | even the concept of a tax) as a parasite is extremely miopic. For
       | one, if you don't have any customers, good luck creating your
       | wealth. The data repeatedly shows that a stronger safety net
       | (which requires taxes) encourages more risk taking and better
       | allocation of wealth creation. Characterizing those that aren't
       | able to have that freedom as parasites... you have to be really
       | full of yourself to make a claim like that.
        
       | croes wrote:
       | So he invested in Clearview AI and wish.com. Thanks for that ...
       | not. "Wealth is assets that earn while you sleep; it's the
       | factory of robots cranking out things." Yeah, robots for sure.
        
       | msarrel wrote:
       | There's some interesting philosophical concepts here, but nothing
       | really hacker newsworthy. This is just someone carrying on that
       | we should be like him without telling us how. Does anyone else
       | note the irony here that he says he is only interested in
       | acquiring wealth, not in status, yet this whole article is really
       | just advertising for his status?
        
         | arkitaip wrote:
         | That's naval's entire thing. Just trite thinking packaged to
         | inflate his own ego as a "thought leader".
        
         | paulpauper wrote:
         | yes, the only reason anyone cares what he has to say is because
         | of his status
        
           | therufa wrote:
           | not necessarily. before his appearance on the JRE podcast I
           | didn't know him at all (i know i live under a rock), yet i've
           | found his ideas compelling. Although Joe doesn't invite
           | nobodies for the most part, so i might be wrong to some
           | extent.
        
             | paulpauper wrote:
             | you just explained it. joe rogan does not have nobodies.
             | think of how many ppl write to him asking to be on his
             | podcast. think of all the mail his producers get.
        
       | srameshc wrote:
       | > But the reality is everyone can be rich.
       | 
       | Reality is everyone can not be rich. So this is pseudo
       | philosophy, with all due respect.
        
         | LoveMortuus wrote:
         | I think "Everyone can be rich", extremely depends on your
         | definition of rich.
         | 
         | And that definition not only varies from person to person but
         | also due to geography and other factors.
        
           | grey-area wrote:
           | It varies most over time.
        
         | ______- wrote:
         | Define rich? I've always loved the quote:
         | Some people are so poor, all they have is money -- Patrick
         | Meagher
         | 
         | You can be rich and have poor taste, rich and alone, rich and
         | never have the simple experiences of everyday 'poorer folk'.
        
         | DennisP wrote:
         | The very next sentence explains what he means:
         | 
         | > But the reality is everyone can be rich. We can see that by
         | seeing, that in the First World, everyone is basically richer
         | than almost anyone who was alive 200 years ago.
        
           | filleduchaos wrote:
           | > We can see that by seeing, that in the First World,
           | everyone is basically richer than almost anyone who was alive
           | 200 years ago.
           | 
           | And we can also see that those riches in large part rest on
           | the poverty of people who happen to be outside the first
           | world, even for basic necessities like food and clothes.
           | 
           | Externalising the poverty doesn't make it not exist.
        
             | chii wrote:
             | > Externalising the poverty
             | 
             | poverty isnt some conserved property that needs to be
             | "externalized" to make the developed world rich.
        
               | filleduchaos wrote:
               | It may not "need" to be[0], but the externalisation of
               | poverty is precisely how the particular quality of life
               | that the lower classes in most developed countries enjoy
               | is maintained - from the workers that make their fast
               | fashion to the ones that assemble (or mine raw materials
               | for) electronics that they cannot afford themselves.
               | 
               | 0. At some point in the not-so-far-off future we will get
               | around to automating all of these things, but until then
               | people have become too deeply entitled to commodities
               | produced by other people that are paid poverty wages.
        
           | [deleted]
        
         | pmorici wrote:
         | Believe he addresses this criticism thusly...
         | 
         | " At the same time, deep down many people believe they can't
         | make it; so they don't want any wealth creation to happen. They
         | virtue signal by attacking the whole enterprise, saying, "Well,
         | making money is evil. You shouldn't do it."
         | 
         | But they're actually playing the other game, which is the
         | status game. They're trying to be high status in the eyes of
         | others by saying, "Well, I don't need money. We don't want
         | money.""
        
           | CJefferson wrote:
           | Just saying "disagree with me? Then you are just playing a
           | status game" isn't a criticism, it's just making stuff up.
           | 
           | The world is full of evidence that one of,if not the biggest
           | factor on people's wealth is the wealth of their parents.
           | It's incredibly hard to escape povity.
        
             | jl2718 wrote:
             | No that's money. You need to read the article. He freely
             | admits you can't win that game.
        
         | dasloop wrote:
         | Not in the physical world but maybe in the digital world where
         | material scarcity is a fixable imposition and attention can be
         | artificially constructed.
        
         | pdpi wrote:
         | That's the whole point of the article. Wealth-rich and money-
         | rich are not the same thing.
         | 
         | I have access to pretty good healthcare (both privately And
         | publicly). I have access to museums, and the internet, and I
         | have a fire brigade and ambulances if I have some sort of
         | accident. All of these things are wealth that we've built as a
         | society and only tangentially related to how much money I
         | personally have.
        
           | xyzelement wrote:
           | Exactly. You also have access, presumably, to a warm home in
           | the winter, aren't suffering from pests and predatory
           | animals, you can learn or be entertained in a million of
           | ways. The fact that people can't perceive all of that as an
           | incredible blessing says more about them than anything else.
        
             | rabuse wrote:
             | Exactly. So many people think being "rich" is having the
             | mansion, Ferrari, and the yacht. Those are just highly-
             | priced, luxurious products that people buy to status-flaunt
             | most of the time (I know so many here in Florida). We live
             | in the greatest time humanity has ever seen in terms of
             | abundance, and survivability.
        
         | throwkeep wrote:
         | Everyone can be rich, because it's a positive sum game. You
         | having a computer doesn't take it from someone else. Every
         | person on the planet can have one.
         | 
         | It's not a fixed pie. We are growing the pie. Most people in
         | "developed" countries are rich from a historical perspective.
         | We have shelter, running water, cheap and plentiful food (so
         | much that we waste over 30%), electricity, microwaves,
         | refrigerators, pocket computers and so on. There's no reason
         | this can't come to the entire world and continue to improve for
         | all.
        
           | staticman2 wrote:
           | Sure, if you define the word rich as "owns more than a naked
           | caveman" then everyone is rich in the world I suppose.
           | 
           | But you are just playing words games.
        
             | chii wrote:
             | but if you define rich as "having more than your fellow
             | human beings", then you cannot ever have everyone be rich.
             | But that definition is not what most people would use.
        
               | staticman2 wrote:
               | I'd maybe define a rich person as "someone who is capable
               | of working but does not need to labor ever again in order
               | to have a comfortable amount of food, water, shelter, and
               | medical care."
               | 
               | Everyone probably cannot be rich like this unless we
               | invent some sort of frighteningly advanced automation to
               | take care of our basic needs.
        
               | kopochameleon wrote:
               | > unless [the exact scenario Naval is talking about]
               | 
               | Good example of "all or nothing thinking" here. "Toiling
               | every day on the backs of humans for our every need" OR
               | "Frighteningly advanced automation" -- reality is higher
               | fidelity than that.
               | 
               | We're already SO far towards the latter scenario (washing
               | our clothes magically with the press of a button),
               | painting it as a dichotomy only serves to highlight how
               | out of touch with reality the immutable scarcity
               | worldview is.
        
               | des1nderlase wrote:
               | Or is it? Being rich is a moving target. The same as
               | being successful.
        
           | JMTQp8lwXL wrote:
           | Allocation of land is indeed a fixed pie. Say being rich is
           | everyone having an 1-acre SFH lot with a view of the ocean.
           | No matter what sort of monetary system we place, there is
           | hard limit to the number of lots that could exist. Some
           | people will have to live further inland.
           | 
           | No amount of toasters will change the fact that some people
           | will have to live inland.
        
         | paulpauper wrote:
         | If wealth is status, which the two are often linked, then
         | everyone cannot be rich.
        
           | xyzelement wrote:
           | Read the article - he intentionally breaks apart wealth which
           | is non zero sum, and status, which is.
        
       | DistressedDrone wrote:
       | I was commenting about this earlier, here's a link to a study
       | that says otherwise:
       | https://advances.sciencemag.org/content/5/7/eaau1156.full
       | 
       | Or rather, it says people who are advantaged (ie lucky)
       | considerably underestimate the contribution of this advantage to
       | their success, and overestimate their own contribution.
       | 
       | On the article itself, the stated idea of status is truly naive
       | if not delusional, and allows them to put anyone who disagrees
       | with their idea into the box of "status game players, to be
       | ignored".
       | 
       | I'm not going to read the entire article, it reads like advice to
       | people who don't need it (upper middle class people). I'm sure it
       | must be comforting to the author, and upper middle class and rich
       | people, but in reality there is no clear path from "poor" to
       | "rich", or else everyone would be taking it.
       | 
       | What I will say is they seem to understand that our economic
       | system is irrational, and to take advantage of it seems rational.
       | But an irrational system is also unfair, and I would rather
       | people not praise this unfairness as "good". The author seems to
       | be paying lip service to the idea of "ethics" while teaching
       | people to abuse the system. And they dare to talk about "virtue
       | signaling".
        
         | clairity wrote:
         | a subversive if subtle inversion also underlies the argument,
         | that status is subservient to wealth. instead, status _is_ the
         | game, and wealth is a conspicuous component of that. everything
         | we consider 'sociopolitical' is about trading various proxies
         | of status, including wealth, to try to 'level up' on the status
         | meter.
         | 
         | his obfuscation is plainly designed to enhance the statused
         | (like him) against the rising threat of the unstatused by
         | confusing the potential up-and-comers.
         | 
         | also, luck is inherently cognitively dissonant. as such, it
         | insists on rationalization, and rationalizations grounded this
         | way inherently lack explanatory power beyond the individual
         | and/or circumstance (since they're projective rather than
         | observationally exhaustive).
        
           | vladmk wrote:
           | 100%. A lot of survivorship bias in his diatribe. I feel most
           | people I n this thread won't like what you're saying though,
           | because it goes against the very belief drilled into Silicon
           | Valley ideology.
        
         | zpeti wrote:
         | I can guarantee you one thing, if you don't try and complain
         | about how only privileged people can do it, you DEFINITELY
         | won't get rich or be successful or whatever your metric is.
         | 
         | If you try, you might fail, and you might fail because of
         | things outside your control, and it won't be your fault.
         | 
         | But you might succeed.
         | 
         | Your choice.
        
           | jayd16 wrote:
           | Pretty sure no one is saying to not try. Quite the opposite.
           | Many simply understand that yes, luck does matter. You need
           | to try _and_ get lucky.
        
           | michaelgrafl wrote:
           | No one is saying only privileged people can be successful.
           | Just that observation has shown that the odds are stacked
           | against them. I would call that unjust, and thus would be
           | accused of playing the status game.
           | 
           | It's a toxic argument.
        
           | Xplune13 wrote:
           | I agree. The act of trying itself opens you up to new
           | possibilities which are just locked if one just complaints
           | and do nothing about it. That's why trying is necessary.
           | 
           | But that doesn't mean one should deny the fact that some
           | things are entirely dependent on pure luck. In my opinion,
           | the luck part starts even before you're actually born (your
           | place/country of birth, family etc.). So, one should
           | acknowledge the fact that luck too played an important role
           | in their current wealth along with their own hard work.
        
             | megaman821 wrote:
             | But what meaning does luck have if you consider every
             | positive thing in life luck? You were lucky you were born
             | with the ability to see. You were you didn't die of
             | childhood disease.
             | 
             | If it was 100% luck, China and India would have most of the
             | good things in the world since the have more lotto tickets
             | (people) than the rest of the world.
        
               | Xplune13 wrote:
               | I didn't say it was 100% luck. I said, trying itself is
               | opening up to new opportunities and possibilities. After
               | all luck is just a game of possibilities and chances.
               | 
               | There isn't a universal definition of luck and there
               | won't ever be. The border between what is luck and what
               | isn't changes every person to person. Your country,
               | family wealth (which then pays for your education) play
               | an important role in one's life and their wealth. A
               | "rich" person on some poor island most probably won't be
               | considered rich in any Western country.
               | 
               | Now it matters what you do with that what you have.
               | Scoring high or low in academics is up to me which would
               | contribute to my wealth in future. I'm not saying that
               | academics is the only metric here, but people having high
               | score are generally more "wealthy" than those that don't
               | according to my observation. So all of it matters on what
               | you do with the given time and opportunities.
        
           | croes wrote:
           | So constant failure is a choice, success is not.
        
         | michaelgrafl wrote:
         | The article is insane. Pure ideological reductive bs.
         | 
         | To say anyone who points out social injustice plays a silly
         | mean game of status is the most cynical thing I've read in a
         | while. As if capitalists weren't driven by status.
         | 
         | And describing taxes as stealing is simply juvenile and fucking
         | stupid and unhelpful.
        
           | throwaway3699 wrote:
           | Taxes are something we've decided is in the collective
           | interest, but they are still the government reaching into
           | your pocket. Especially with ever increasing overreach,
           | mainly to fund blowing up kids overseas, I can understand
           | this opinion.
        
           | ixacto wrote:
           | I'd say taxes are halfway stealing and halfway actually doing
           | good things for society.
           | 
           | Paying income taxes into the national debt and finding the
           | military industrial complex is not that appetizing. That is
           | just allowing for geopolitical shenanigans and bombing poor
           | people the world over. Also funding the state governments
           | (hello CA/NU) that think that they are small countries is
           | ridiculous.
           | 
           | Paying property taxes to fund EMS/schools/roads is an
           | entirely different thing that I fully support.
           | 
           | But yeah, right now as a whole we are paying way too much tax
           | IMO and could get away with paying like half if we got rid of
           | the military and bloated government. Then you could have the
           | first 100k that you make you actually get to keep.
        
         | [deleted]
        
         | rini17 wrote:
         | Seems to me either you haven't experienced yourself the
         | distinction between wealth creating and status seeking. Or you
         | put it all into the box "they delude themselves they create
         | wealth, to be ignored".
        
           | DistressedDrone wrote:
           | You are right, I don't have rich friends who create wealth.
           | But if I to choose one as a friend or mentor to make the
           | world a better place, I'll side with the person not trying to
           | game an entire society to get richer, regardless of the
           | other's stated intention to "create wealth for everyone".
           | 
           | That said, I don't doubt that they do create wealth, I just
           | think any benefits to society are incidental, and that the
           | logical rigor of their ex post facto justification is
           | lacking.
        
       | dataangel wrote:
       | > Humans don't have that. I can cooperate with you guys. One of
       | you is a Serbian. The other one is a Persian by origin. And I'm
       | Indian by origin. We have very little blood in common, basically
       | none. But we still cooperate.
       | 
       | I'm not a geneticist and I'm having trouble conjuring the right
       | search terms to find a source, but I seem to recall reading not
       | too long ago that all humans are more related to each other on
       | average than members of most other species, because we very
       | "recently" (still millions of years) went through a near-
       | extinction event, making our gene pool less diverse than most
       | other species because everybody alive today comes from the few
       | people that survived that event. So altruism in most animals is
       | actually more impressive than altruism in humans.
        
         | Teledhil wrote:
         | Only 75000 years ago, but maybe the Toba eruption?
         | https://en.wikipedia.org/wiki/Toba_catastrophe_theory#Geneti...
        
           | mkl wrote:
           | It may be way more recent than that, more like 3000 years:
           | 
           | - https://en.wikipedia.org/wiki/Most_recent_common_ancestor#T
           | M...
           | 
           | - https://www.sciencedaily.com/releases/2004/09/040930122428.
           | h...
        
         | nine_k wrote:
         | Assuming that the Indian speaks Hindi, all three languages are
         | Indo-European, assuming even closer historically recent ties.
        
       | anigbrowl wrote:
       | The stuff about capitalism being intrinsic and status games being
       | zero sum suggests a rather myopic view of society. Of course many
       | economic exchanges are positive-sum. But it does not follow that
       | this drive is universal; it just looks that way to people whose
       | social circle consists of others engaged in the same virtuous
       | circle. Nor does it follow that others don't get it or are
       | playing zero-sum status games; there are different groups with
       | different motivations.
       | 
       | Research suggests there are 4 major groupings whose interests are
       | only somewhat coincident:
       | https://advances.sciencemag.org/content/2/8/e1600451
        
       | pototo666 wrote:
       | > You Won't Get Rich Renting Out Your Time
       | 
       | > Live Below Your Means for Freedom
       | 
       | > Learn to Sell, Learn to Build
       | 
       | Personally I like these three pieces.
       | 
       | HN users are good at picking something they don't agree and agure
       | against it. It's fine. But how about discuss what you believe is
       | intereting and useful?
        
         | cweill wrote:
         | +1 to these three. I also like the observation about the only
         | things that are "permissionless and limitless leverage" being
         | media and code. If you position yourself along on of those (or
         | both) and are patient, you have the chance to become extremely
         | wealthy, especially once you've mastered the other 3 points you
         | mentioned.
        
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