How People Get Rich Now • Hacker News Board

Re: How People Get Rich Now

#151

Post by _qwfv » Mon, Apr 12, 2021, 5:08 PM UTC

pc86 wrote: post #124

josefresco wrote: post #31

Earlier quoted context omitted.

I agree. A rich individual can give their child $0 in inheritance but one introduction, referral or diner party later and they could be set for life. In between this scenario, and the other (handed money) there are countless scenarios that make conclusions very cloudy.

> A rich individual can give their child $0 in inheritance but one introduction, referral or diner party later and they could be set for life. It's a mighty big leap to go from a single intro to "set for life."

Don't misinterpret what the parent is saying. It's not "one introduction will", it's "one introduction could". If you are wealthy and connected enough there are many folks who will gladly ensure your children are taken care of, if for no other reason than to be connected to the parent/family.

An introduction might lead to a job, apprenticeship, or internship. It might lead to a partnership somewhere or the opportunity to invest in some way you would not normally have access to. Or it could open the door to further introductions and connections. Network effects are powerful things, and being introduced to the right node in the social graph can make all the difference.

Re: How People Get Rich Now

#152

Post by throwawayboise » Mon, Apr 12, 2021, 5:09 PM UTC

chrisBob wrote: post #113

harshaw wrote: post #32

I don't want to derail this too much with personal anecdotes, but I suspect you are much more likely to build wealth with the more established tech companies - and that wealth is "rich enough". Maybe I am just unlucky or unskilled, but I spent roughly 20 years working at startups or innovation labs. I was "close" to some big events where I could have made big $$ but made 0. Both at my own startup and being at early s…

He is saying you are more likely to become a Billionaire by starting a company than by joining a FAANG as an employee. Now that is a 1:1000000 event instead of a 1:5000000 event like it may have been in the past. I will forgive you if you still think it is unlikely. Most people's goal isn't (and shouldn't be) $1B. If your goal is a more reasonable $5M then joining an existing company is still your best bet. I am goin…

That's sort of my take. Super wealth comes from founding or having a large stake in a unicorn. That's of course true but also rare and sort of like a kid betting his future on playing in the NBA. Sure some people make it, but the vast majority do not.

"Enough" wealth -- i.e. retiring with millions in assets, is much more attainable by anyone who simply invests sensibly over the course of a working career. You don't even need stock options or equity compensation or a SV salary.

Re: How People Get Rich Now

#153

Post by strikelaserclaw » Mon, Apr 12, 2021, 5:09 PM UTC

tyre wrote: post #130

nindalf wrote: post #71

It's a classic PG article. Many true facts in there, lots of good analysis with just a few questionable claims thrown in here and there. At the end, there's a massive claim that isn't fully stated but implied. "Of course the Gini coefficient is increasing" translated means "income inequality is not a problem". Firstly, Gini coefficient is based on income, not wealth. That isn't stated clearly. Secondly, there's absol…

Add to that that tech companies concentrate wealth line never before. Airbnb takes a cut of transactions not only around the US but across the world. Not everyone works in the Bay Area, but how many of the founders, early employees, and VCs do? The ones who really make massive wealth? Not 100%, but most. Same with Stripe, the same with Facebook, Google, etc. we’re pulling tremendous wealth into a small area, with tec…

undoubtedly, i think theres a sweet spot for letting people gain rewards from their own hard work/talent/value creation, but i think as a society we are moving into the dangerous territory where that balance is totally skewed in one direction.

Re: How People Get Rich Now

#154

Post by TheTrotters » Mon, Apr 12, 2021, 5:09 PM UTC

DC1350 wrote: post #133

dudeman13 wrote: post #111

Earlier quoted context omitted.

Just how bad at finances are you and people around you if 150k just really isn't that much? That literally places you amongst the richest 1%. Not metaphorically, literally. A couple of years worth of saving is enough to give you passive income to never need to work again for food or shelter.

$150k is not even enough to buy a small home near your workplace in a lot of cities. Janitors had better living conditions 50 years ago than $150k earners do today

> Janitors had better living conditions 50 years ago than $150k earners do today

This is just batshit crazy.

Re: How People Get Rich Now

#155

Post by domk » Mon, Apr 12, 2021, 5:10 PM UTC

This essay feels really dishonest. It tries to simplify the vastly complex problem of income inequality, on which there is a sea of existing, detailed research, into a simple "it's easier to start companies now" argument. And it doesn't even explore that argument in that much depth.

What about bottom incomes? Why have those barely increased in real terms in the last 30 years, while the top 1% of incomes has been shooting steadily up? Surely that's nothing to do with people starting companies.

Re: How People Get Rich Now

#156

Post by claudiulodro » Mon, Apr 12, 2021, 5:10 PM UTC

alberth wrote: post #103

harshaw wrote: post #32

I don't want to derail this too much with personal anecdotes, but I suspect you are much more likely to build wealth with the more established tech companies - and that wealth is "rich enough". Maybe I am just unlucky or unskilled, but I spent roughly 20 years working at startups or innovation labs. I was "close" to some big events where I could have made big $$ but made 0. Both at my own startup and being at early s…

Rich != Wealth I think where PG and others are conflating two topics is being Rich vs being Wealthy. You can certainly become Rich working at FAANG (top 1% earner + appreciating stock ... and it's way less risky than other jobs). Where you can become Wealthy starting your own company (super high risk, most likely won't even become "rich" doing it, but you have the potential to create limitless wealth) EDIT: If you're…

The definition of "rich" is "having a great deal of money or assets; wealthy." Seems like Rich == Wealth as far as I can tell. There is definitely a difference between well-off and wealthy, though.

Re: How People Get Rich Now

#157

Post by insert_coin » Mon, Apr 12, 2021, 5:10 PM UTC

analog31 wrote: post #85

>>> Indeed, we should expect both the number and wealth of founders to grow, because every decade it gets easier to start a startup. In my view, this isn't guaranteed. I don't think there's any inherent reason why the "tech" industry can't consolidate itself into a few huge "gatekeeper" companies, and make it harder to start startups that are actually successful. At any moment, we could be at the beginning of an era,…

For the same reason old "tech" (GE, IBM, HP, etc.) didn't prevent the rise of new tech giants: Blindness.

They tried, tho, it just didn't work out because they were blinded by past success and the innovator's dilemma.

Re: How People Get Rich Now

#158

Post by NortySpock » Mon, Apr 12, 2021, 5:10 PM UTC

giantg2 wrote: post #76

internetslave wrote: post #23

I think there’s a different reason, companies just aren’t paying enough. Wages, even at 150-200k just really aren’t that much. 200k now is a lot less than 200k in 2010. The younger generation intuitively knows this. I don’t know anyone jockeying to climb the corporate ladder, and my social circle spans Stanford grads to no college degree at all. People are starting businesses because working for a corporation day in…

I think some of this depends on the area. Even in an average area, a $200k salary with a family could give the option for early retirement. I make less than $100k and support my family in an average area. It does feel like I'll work until I die. If I were making double that, it would be a huge difference.

Yeah, also making under 100k if I made 200k even for a year it would absolutely let me pay for my wife's college out of pocket rather than co-signing on debt, and then let me either buff my retirement IRA or pay down a chunk the mortgage...

Located in the Midwest USA

Re: How People Get Rich Now

#159

Post by iur12 » Mon, Apr 12, 2021, 5:11 PM UTC

blackshaw wrote: post #135

WhompingWindows wrote: post #120

Earlier quoted context omitted.

Paul Graham's articles always shoot immediately up to the top of HN, but I agree with you, they're generally cursory and pithy thoughts which don't convince my skeptical mind. I don't know, can someone explain why his work is so popular? Think of all the amazing writers across our civilization whose work is linkable, and we're worshipping these decent but not amazing blog posts?

Because he's the founder of this website?

Indeed. Meritocracy, hard at work.

Re: How People Get Rich Now

#160

Post by cryptoz » Mon, Apr 12, 2021, 5:11 PM UTC

WhompingWindows wrote: post #120

nindalf wrote: post #71

It's a classic PG article. Many true facts in there, lots of good analysis with just a few questionable claims thrown in here and there. At the end, there's a massive claim that isn't fully stated but implied. "Of course the Gini coefficient is increasing" translated means "income inequality is not a problem". Firstly, Gini coefficient is based on income, not wealth. That isn't stated clearly. Secondly, there's absol…

Paul Graham's articles always shoot immediately up to the top of HN, but I agree with you, they're generally cursory and pithy thoughts which don't convince my skeptical mind. I don't know, can someone explain why his work is so popular? Think of all the amazing writers across our civilization whose work is linkable, and we're worshipping these decent but not amazing blog posts?

PG's recent articles have changed from what they used to be. Recently (last few years) there is a dramatic change towards defending riches, logical fallacies to explain why being rich is okay, a lot of focus on wealth and how to get it and why it's okay.

A lot less technically interesting than he used to post. I used to send Startup=Growth to everyone I knew. I think people are used to high-quality content from PG and so the upvotes fly - but honestly, recently, the quality isn't there. And often the content of his posts I now find quite offensive and wrong.

Not very interesting any more. Mostly wealth defenses and fallacies.