[HN Gopher] Just Be Rich (2021)
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       Just Be Rich (2021)
        
       Author : scarmoo
       Score  : 138 points
       Date   : 2024-07-14 20:16 UTC (2 hours ago)
        
 (HTM) web link (keenen.xyz)
 (TXT) w3m dump (keenen.xyz)
        
       | polotics wrote:
       | Not using a throwaway, and agreeing in principle: Paul Graham
       | appears here oddly non-scientific.
        
         | rvrs wrote:
         | Oddly? His essays are regularly thinly-veiled excuses to peddle
         | libertarian horse shit
         | 
         | I thought Hackers and Painters was decent and even in those
         | essays Paul couldn't help him self
        
           | SpaceManNabs wrote:
           | Totally agree. One of my biggest critiques of entrepreneur
           | and hacker circles is how much they ride PG. dude is rich,
           | not some sort of genius policy maker.
           | 
           | The difference between a lot of hackers now and PG isnt
           | talent, it is that someone was making a good website when the
           | internet pretty much was empty lol. Google was still a baby
           | compared to yahoo.
           | 
           | edit: since i was pretty negative here, i will sing some
           | praise.
           | 
           | Graham is incredibly technologically capable, knows what
           | problems are worth investing in, and is great at leading
           | people. Those qualities are great, and he is a world star at
           | it.
        
         | metadat wrote:
         | TFA put it clearly and succinctly:
         | 
         |  _> > You would think, after having been on the side of labor
         | in its fight with capital for almost two centuries, that the
         | far left would be happy that labor has finally prevailed. But
         | none of them seem to be. You can almost hear them saying "No,
         | no, not that way."
         | 
         | > And there we have it. The slight injection of PG's true
         | ideology relegated to the notes section and vague enough that
         | some might ignore. But keep in mind this is the same guy who
         | argued against a wealth tax. His seemingly impartial and
         | logical writing attempts to hide his true intentions._
        
       | immibis wrote:
       | Multiple replies merged into one because of HN's post rate limit.
       | 
       | I pulled myself up by my bootstraps once and now I'm the richest
       | person alive.
       | 
       | Paul Graham is forced to appear non-scientific because there is
       | no science, that justifies our current economic conditions.
       | There's the whole field of economics, sure, but that only studies
       | what does happen in our current economy, not how we _should_ run
       | an economy. The only things available to justify our current
       | economic conditions are pseudoscience and appeal to power.
       | 
       | A world where people get rich by starting tech companies that
       | make a mark on the world that appeals to current rich people
       | isn't much better than a world where people get rich by being the
       | children of current rich people. In both cases you get rich by
       | helping the rich class perpetuate itself, not by actually making
       | the world better.
       | 
       | Noahpinion's article misses a point: it talks about how there
       | isn't that much _actual_ wealth and most  "wealth" is fake zero-
       | sum financial instruments and since there isn't much actual
       | wealth there isn't much point taxing it. But it ignores that
       | taxing zero-sum financial instrument wealth still alters the
       | world, in a way that many find desirable: simultaneously deleting
       | a positive-value financial instrument from a rich person and its
       | counterpart negative-value financial instrument from a poor
       | person may not change the total net wealth, but it reduces
       | inequality.
        
         | djhaskkka wrote:
         | > no science, that justifies our current economic conditions.
         | 
         | but there is.
         | 
         | lots and lots and manipulation and misdirection honed thru the
         | ages and written in plain view in traditions and old symbols.
         | 
         | there's a reason old lord of the mannors had dog and horse
         | breeds on their walls, while having power of who marries who on
         | their domains. but modern science will never touch those
         | points. still, there's lot of science on why you agree to the
         | boom bust cycle and all that.
        
       | xrd wrote:
       | Noahopinion has a very recent interesting article on wealth and
       | taxation. It makes me mad because it contradicts a lot of
       | cherished ideas I have about the rich and taxation, but probably
       | makes sense in this conversation:
       | 
       | https://www.noahpinion.blog/p/theres-not-that-much-wealth-in...
        
         | toomuchtodo wrote:
         | Wealth is unelected power, a bug. It's reasonable to say there
         | should be limits on wealth, considering most wealthy people
         | were lucky (either by birth or "right place right time") but
         | attempt to post rationalize it as anything else.
         | 
         | Would you want someone who won a lottery ticket to have power
         | over your life at scale? Because that's what excess wealth is,
         | a power dynamic powered by a suboptimal system masquerading as
         | shades of a meritocracy that does not exist.
        
           | chr1 wrote:
           | How many people who win lottery tickets become wealthy? Most
           | of them squander the money they win, so your point about
           | simply being lucky is not true.
           | 
           | As for your question lottery winner having the power
           | proportional to his money, is much better than bureaucrats
           | having power to take anyone's money.
        
             | eigart wrote:
             | Obtaining excessive wealth is the same as winning the
             | lottery (the billionaire founder class).
             | 
             | Edit: Q: If you downvote this comment, do you believe
             | someone like Zuckerberg was predestined to be a
             | billionaire?
        
           | aorloff wrote:
           | What about wealth you build for yourself ?
           | 
           | Many of the duplexes in town were built by small builders who
           | passed them on to family.
           | 
           | Now they are treated like rich landowners but in reality
           | grandpa built the wealth.
        
             | toomuchtodo wrote:
             | Do you not see how this was luck? Certainly, actions were
             | taken to encourage an outcome (holding an asset of
             | potential future value), but luck as a component of a
             | favorable outcome cannot be overstated.
        
               | aorloff wrote:
               | They were builders, they had businesses building for
               | other people and invested their own money and time into
               | these buildings for their own family.
               | 
               | Luck in exactly what sense ?
               | 
               | Yes, they did not die of dysentery on the trail, so
               | evidently some luck was involved, but the wealth building
               | seems very intentional and causal.
        
               | toomuchtodo wrote:
               | See, you've caught yourself in the trap. Lots of builders
               | fail, look at the YC startup failure rate.
               | 
               | Even investing in broad equity index funds is luck
               | (sequence risk).
               | 
               | https://news.ycombinator.com/item?id=40378138
               | 
               | https://archive.nytimes.com/www.nytimes.com/interactive/2
               | 011...
        
               | aorloff wrote:
               | I meant construction developers as a trade for others.
        
               | kortilla wrote:
               | You've caught yourself in the trap of thinking that
               | passing something with a high failure rate means luck.
        
               | aorloff wrote:
               | In the context of a discussion about wealth, its true
               | that the financialization of real estate and runaway
               | values of the greater Silicon Valley were a stroke of
               | luck, but when talking about building wealth, housing has
               | intrinsic value that I think takes a lot of that kind of
               | SV luck out of the picture.
        
               | toomuchtodo wrote:
               | Housing value is land value. Did you buy or build in the
               | right location? Luck!
               | 
               | Did commercial real estate know WFH post Covid was going
               | to obliterate CRE values? Again, bad luck.
        
               | soared wrote:
               | Luck that their grandpa built the duplex. I am unlucky
               | that my grandpa did not build a duplex. Luck that their
               | parents held the assets and did not sell it.
        
               | kortilla wrote:
               | Of course it can be overstated. That's basically the
               | entire mantra of progressives in the US right now and
               | it's used as an excuse for incompetent people to attack
               | people who successfully do things and (even worse)
               | absolve themselves of responsibility for doing
               | unproductive things.
               | 
               | Punishing people for not having something bad derail
               | their business is tall poppy syndrome.
               | 
               | Luck is a part of why everyone continues breathing
               | everyday rather than having sudden heart failure. We
               | don't need to constantly diminish people for living
               | because they were lucky enough to not have a fatal
               | condition.
               | 
               | We should be encouraging the people who were successful,
               | even if part of it may have been luck. Any other approach
               | punishes people doing the rest of the work that isn't
               | luck.
        
           | dnissley wrote:
           | On some level not all power being elected is good. Provides
           | some balancing force for an electorate with... I'm not sure
           | what to call it... volatile whims?
        
           | WalterBright wrote:
           | If people cannot accumulate wealth, we wouldn't have SpaceX.
        
           | TimTheTinker wrote:
           | Without wealth, there is no prosperity for _anyone_ except
           | those who hold political power, full stop.
        
         | Timshel wrote:
         | It's interesting but at the same time I think some points miss
         | their mark like :
         | 
         | > The wealth of America's billionaires was estimated at around
         | $5.2 trillion in 2023, while federal government spending was
         | about $6.4 trillion. Confiscating every last penny from Jeff
         | Bezos, Elon Musk, and all the other billionaires wouldn't fund
         | the U.S. government for one year. And of course you could only
         | do it once.
         | 
         | Ok so just 750 persons can replace all form of taxation in the
         | USA that's incredible. It's not like just replacing taxes from
         | all 330m persons but all the companies too ...
         | 
         | And the USA budget is not the most efficient per capita
         | (something around 20k ?), if you do the same for France you are
         | closer to 6k.
        
         | ericjmorey wrote:
         | Noah is a smart person and that's why I'm surprised that his
         | essay is so transparently dumb.
         | 
         | "I think income is a lot more important than wealth."
         | 
         | If you keep receiving all the income you want and I'll get
         | exclusive rights to all of your wealth, surely you got the
         | better side of this deal then? Or is there more nuance at play
         | and blankets statements about the relative importance of income
         | and wealth are simply pointless.
         | 
         | "if you have a house, no one owes you that house"?
         | 
         | In this case of property ownership, your rights granted to you
         | by society is the result of an agreement by the society you're
         | a part of not to use the resource that you've been granted
         | exclusive rights to. The allocation of control over resources
         | is the essence of economics. It's the whole point of the field
         | of study. I cannot believe he's setting up an argument about
         | how that doesn't really matter because there isn't a lot of
         | resource control without legally associated debts.
        
         | TacticalCoder wrote:
         | > Noahopinion has a very recent interesting article on wealth
         | and taxation
         | 
         | As this article explains: the US could confiscate all US
         | billionaires' wealth and that would only pay for one year of
         | public US spendings. Not to mention that confiscating that much
         | wealth would crash the very value of that wealth, so they'd get
         | less than that.
         | 
         | That's what I meant in my comment when I wrote that we know how
         | it's going to end up: they won't stop at confiscating the
         | billionaires' wealth. The state shall immediately run out of
         | that. They'll then come after the middle class' savings (which
         | the EU is preparing at the moment, should be coming out in a
         | few months).
        
         | afpx wrote:
         | When someone writes "confiscating rich people's wealth" I can't
         | take them seriously. People make wealth from what
         | infrastructure is available. Try making your wealth living in
         | the middle of the Sahara.
        
       | Mistletoe wrote:
       | Not only are the poor poorer but now they feel like crap from the
       | tech social media dystopia they inhabit.
        
         | CoastalCoder wrote:
         | There's also the surveillance economy. I'm not too happy about
         | that, either.
        
         | jongjong wrote:
         | Yes, it's 24/7 gaslighting. One article after another telling
         | us that things are a certain way and showing us all sorts of
         | up-trending charts while we can see with our own eyes that it
         | bears no resemblance to our reality... So then we start
         | thinking "Maybe, it's true, everyone else who is not in my
         | social group is doing well. Maybe there is some kind of
         | conspiracy against me and my kind... Maybe that's why none of
         | my startup project are allowed to get any traffic from Google
         | and why bloggers and journalists never respond to my emails.'
        
       | AA-BA-94-2A-56 wrote:
       | This article feels like an attempt to morally wash one's hands of
       | the moral stink of capitalism. Do you really think that because
       | you're in tech and not mining, that the accumulation of wealth is
       | any less driven by exploitation?
       | 
       | By the way, I don't know the answer to this. I myself am a
       | landlord. But if we're getting into morality, let's fully examine
       | this.
       | 
       | 11.5% of Americans are below the poverty line. The same economic
       | system that makes is possible to become rich enforces a roughly
       | 5% unemployment rate. This unemployment rate is necessary to
       | prevent a wage price spiral. There are people who are paid a lot
       | of money (Federal Reserve), whose job it is to pull levers and
       | turn dials until the unemployment rate is at that magic 5%. They
       | actively ensure people can't make a living, to allow you the
       | chance to accumulate wealth.
       | 
       | You may not be directly responsible for their poverty- but their
       | poverty makes your accumulation of wealth possible. Without a 5%
       | unemployment rate, the delicate balance of the economy cascades
       | into oblivion in a wage-price spiral.
       | 
       | So here's my moral question- do you then owe them anything? Do
       | you owe society anything?
       | 
       | Maybe there is something wrong with "just being rich" if you
       | don't attempt to use some of your money for the betterment of
       | your community and society that is actively made worse to allow
       | you to get rich.
       | 
       | If you want to get rich, get rich. But don't fool yourself into
       | thinking that it's morally good. It can be, but it's probably
       | not. Because it's probably at the expense of others in some
       | direct or indirect way.
       | 
       | By the way I'm pulling punches here. This is a very gentle
       | response to try and get you to think differently about your
       | ethics.
       | 
       | ---
       | 
       | If you're the sort of person that always needs to feel morally
       | right, then I would say getting rich probably isn't for you. Any
       | moral argument you can come up to protect your ego would be
       | fragile, and easily undone.
        
         | blackeyeblitzar wrote:
         | > By the way I'm pulling punches here.
         | 
         | Out of curiosity where can I find the unabridged version of
         | this?
        
         | kortilla wrote:
         | The fed does not target an unemployment minimum. Their mandate
         | is to reduce it after controlling inflation.
        
       | dash2 wrote:
       | "Paul paints a rosy picture but doesn't mention that incomes for
       | lower and middle-class families have fallen since the 80s."
       | 
       | Doesn't look like it: median income in 2019 was $44K, in 2001 it
       | was $31K. That's adjusted for inflation. Source:
       | https://en.wikipedia.org/wiki/Income_in_the_United_States
       | 
       | I don't like it when the facts look wrong after two minutes'
       | googling.
        
         | ggg4468 wrote:
         | What can you expect of someone who thinks "the rich are my
         | enemies and the source of my problems". The bias and intention
         | to force you to take his position is not subtle.
        
         | willsmith72 wrote:
         | It is interesting how much easier the stats for 50th percentile
         | plus are easier to find than anything below that. Also only 2
         | minute of googling, but 6/6 pages I checked provided either
         | median or median as well as 60-99th percentile. None showed
         | anything below.
         | 
         | Not speculating on what those stats are, and I'm sure they're
         | out there somewhere, but certainly less available or SEO'd.
        
         | ggg4468 wrote:
         | The left likes to constantly watch and complain of how much
         | money others have.
         | 
         | It's amazing how petty they are, behaviors frequently seen in 5
         | year old children, and in leftist adults.
         | 
         | Waaaah waaah, the size of his cake is bigger. Waaaaah
        
           | OKRainbowKid wrote:
           | Building strawmen and characterizing roughly 50% of the
           | population as crying babies on the basis of you not agreeing
           | with their politics sure seems like something a very mature
           | and collected person would do.
        
         | advael wrote:
         | Dam, I didn't know the 80s started in 2001. Or is it just that
         | that's the chart you can find with "two minutes' googling" and
         | so that has to be good enough because that's the amount of
         | effort it takes to find something that vaguely seems to satisfy
         | your confirmation bias?
         | 
         | Okay, though, let's just look at the chart you link. Let's
         | assume that "inflation adjusted dollars" tracks purchasing
         | power parity perfectly over that period and look at these
         | numbers in relative terms, because that's what actually matters
         | for stuff like "Who is competing to buy the limited housing
         | stock available" or other things that actually matter to people
         | and aren't just numerical games
         | 
         | 31k to 44k? Cool. Seems like a lot. That's a 33% increase in
         | the median income over that period! Over the same period, the
         | top 20% bucket on the same chart grew from about 67k to about
         | 103k, or by about 50%. The .0001% income bucket grew from 30m
         | to about 60m, or about 100%. Keep in mind that the marginal
         | value of extra dollars is considerably higher the fewer dollars
         | you're making. So over this period of time, the Gini
         | Coefficient, which measures inequality, has drastically
         | increased, which is what you'd expect given the argument the
         | article is making
         | 
         | Now, maybe your point is that the one number, the median
         | income, that you're talking about has gone, I dunno, vaguely up
         | in some period of time. It seems like this misses the point of
         | the article in favor of nitpicking about a minor factual error.
         | "Look!", you might say, "they said median income went down when
         | really it went up!" That seems to be your entire argument here,
         | and it's fucking stupid, because if you're going to fixate on a
         | minor factual nitpick, at least get your facts right. 2001 is
         | generously a whole decade and some change out from the 80s
        
         | xrisk wrote:
         | The same Wikipedia article notes that the increase in median
         | income is due to increasing women's wages and increased
         | participation of women in the labor force.
         | 
         | > While wages for women have increased greatly, median earnings
         | of male wage earners have remained stagnant since the late
         | 1970s. Household income, however, has risen due to the
         | increasing number of households with more than one income
         | earner and women's increased presence in the labor force.
        
         | soared wrote:
         | Agreed, that is a very weird sentence when the chart clearly
         | doesn't show the same thing. Not sure what the author meant.
         | 
         | > But middle-class incomes have not grown at the rate of upper-
         | tier incomes. From 1970 to 2018, the median middle-class income
         | increased from $58,100 to $86,600, a gain of 49%.10 This was
         | considerably less than the 64% increase for upper-income
         | households, whose median income increased from $126,100 in 1970
         | to $207,400 in 2018. Households in the lower-income tier
         | experienced a gain of 43%, from $20,000 in 1970 to $28,700 in
         | 2018. (Incomes are expressed in 2018 dollars.)
         | 
         | https://www.pewresearch.org/social-trends/2020/01/09/trends-...
         | 
         | The graphs in the blog posted are from this pew article.
        
         | mupuff1234 wrote:
         | Inflation isn't exactly a single objective truth as you can
         | decide how to measure it.
         | 
         | For example looking at the number of median salaries required
         | to buy a house tells a different story.
        
       | TacticalCoder wrote:
       | > Wealth inequality is just a radical left fairy tale to
       | villainize the hard-working 1%.
       | 
       | The problem with that mindset is that we _know_ how it 's going
       | to end up: it's not only the 0.1% or 1% that are going to suffer
       | the wealth tax. It's the 30%.
       | 
       | At first the "tax on billionaire" was supposed to be that: a tax
       | on billionaires. But then there are already publications
       | explaining how "taxing anyone who has more than a million (a
       | million, not a billion) would bring x in revenue for the various
       | countries".
       | 
       | Also note that it's never about distributing that money to the
       | poor: it's always about the state getting more money. Money which
       | is then spent in state-friendly companies.
       | 
       | For example the EU is hard at work now imposing a mandatory, EU-
       | wide, tax on all its citizens to "finance EU projects". It's not
       | a tax to give money to poor people. It's a tax to give money to
       | companies like Thales and Airbus and a shitload of sycophantic
       | companies that'd be bankrupt if not for the state' intervention.
       | 
       | Just look at how government are managing the insane money they
       | get: do you think they're doing a good job when they're at, say,
       | 130% debt-to-GDP ratio? Why would I want to encourage such
       | irresponsible spenders by giving them even more?
       | 
       | When a country like France, which is badly in debt and has huge
       | deficits, has about 60% of its GDP that is tied to public
       | spending, it's not the fault of "the rich" if the country is not
       | doing well. It's the fault of the people governing that country.
       | 
       | So, no, thanks but no thanks. I don't want any "let's tax the
       | rich" discourse because I know that it's the middle-class, not
       | the rich, that's going to end up getting owned.
       | 
       | Just like fighting the four horsemen of the infocalypse is an
       | excuse used by the states to gain every more power, attacking the
       | rich is an excuse for the state to gain ever more power. It's not
       | about helping the poor.
        
         | willsmith72 wrote:
         | Is this the best example? It looks like France's dept to gdp is
         | significantly lower than the US (110% vs 122%)
        
         | soared wrote:
         | How do we know that?
        
       | pvg wrote:
       | 1000+ comment chonkthread at the time
       | https://news.ycombinator.com/item?id=26787654
        
       | WalterBright wrote:
       | > Paul paints a rosy picture but doesn't mention that incomes for
       | lower and middle-class families have fallen since the 80s.
       | 
       | These analyses never mention the fact that the consumption of
       | wealth by the government has vastly expanded. Where does one
       | think that wealth came from?
        
       | TrackerFF wrote:
       | I live in a country with wealth tax (Norway), and I'm a bit
       | conflicted on it.
       | 
       | On one side, it is effectively the only real tax a many in the
       | "ownership class" are paying - relative to their wealth.
       | 
       | On the other side, it is a really problematic tax for
       | entrepreneurs. It is downright horrible for startups and scaleups
       | - critical funds that should be used to grow your company, has to
       | be given out in dividends to founders, so that they can afford to
       | pay the wealth tax.
       | 
       | And it is unfair - as it is a tax that foreign owners don't have
       | to pay, but domestic owners have to pay. One natural consequence
       | of this has been that the wealthy people are simply...leaving the
       | country. (our total / combined max wealth tax is 1.1%)
        
       | WalterBright wrote:
       | > false claim that wealth inequality is solely due to more
       | startups and not a real problem says a lot.
       | 
       | The article assumes that wealth inequality is bad, but never
       | explains it.
       | 
       | The thing is, people all have different abilities and make
       | different choices in life. These lead inevitably to different
       | results. In order to make everyone equal, peoples' freedoms must
       | be taken away.
        
       | nojs wrote:
       | > You would think, after having been on the side of labor in its
       | fight with capital for almost two centuries, that the far left
       | would be happy that labor has finally prevailed.
       | 
       | PG does make a reasonable point here. Capital is much less of a
       | barrier than in the past for starting a business. A small group
       | of people with no outside investment can do a lot of damage.
        
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       (page generated 2024-07-14 23:00 UTC)