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How People Get Rich Now

paulgraham.com

561–570 of 941 posts

Re: How People Get Rich Now

#561

Earlier quoted context omitted.

Exactly, pensions were considerably more common in the 1960s also, but at the end of the day, I don't really care if my retirement is actually funded by a pension or a 401k or by stuffing dollar bills under my mattress, I want to know when I can retire and how comfortably I can live when I retire. Yes, getting into the weeds is valuable, but here we're talking about the money in your bank at the end of the day, and t…

> why Because their decisions can drive a company into bankruptcy or transform it into a trillion dollar company. Your average line employee has no such leverage from their actions.

And when they drive it into bankruptcy, the company will still go to court to argue that these bonuses, compensation, parachutes should be paid, regardless. Win-win game. Except for the employees and shareholders.

Re: How People Get Rich Now

#562

Earlier quoted context omitted.

The gist of your original comment was that life has been getting better for everyone. But if you also claim people need to adjust their expectations downward, then some things are not getting better for everyone. I know that people from the 50s to the 80s didn't have internet, healthcare technology, medicines, smartphones, etc like today. But obviously there is something to be said for the stability or utility of kno…

> stability or utility of knowing that your children will most likely have a better future than you did Depends on how you qualify "better". By the listed measures, this is still the case. By available land/population this is clearly not. Do we have any reason to believe our children will not have better healthcare, nutrition, access to information, etc than we do? If we don't, then what justification is there for ag…

>By the listed measures, this is still the case.

What measures? The ones in your original comment?

>healthcare, education, sanitation, nutrition, shelter, comfort, convenience, etc.

In the US, you can trace all of these back to wages, especially since healthcare is tied to your employer in the US, and you can look up any a variety of data to show that wages stagnated decades ago, length of tenure at employers decreased, increased participation in "gig" economy and service industry which don't offer benefits (i.e. loss in wages), consolidation of growing economies in fewer areas of US resulting in cost of land rising disproportionally to income, etc.

> Do we have any reason to believe our children will not have better healthcare, nutrition, access to information, etc than we do?

I don't know who "we" is here, but it's reality for people who spent 20 to 30 years at a manufacturing facility that was then outsourced and who now live in a town with no significant business, whose kids' only hope is to use college to boost themselves into an in demand career, but that involves moving to a HCOL area where they now have to sink a significant amount of money into their land purchase (house) to establish themselves, away from the rest of their family.

>If we don't, then what justification is there for agitation?

I don't know what other sources of information you want, but I know pretty much everyone in my parents' generation got married, had kids, raised families, and now the number of people that are coupled up is around half in my family and friends, and those with kids by mid 30s is even lower, maybe a third.

There's shortages of healthcare providers in rural areas because no one wants to live there, there's more and more competition for in demand areas as everyone tries to get in before they can't afford it.

This is all volatility. This didn't happen when everywhere was growing, but this happens when you have a divergence, and you're either on the upswing or the downswing.

Re: How People Get Rich Now

#563
post #530

Earlier quoted context omitted.

I'm not sure what marxism has to do with this (I don't think Marx wrote about charity) and although I'm not a native speaker I'm pretty good at syntax/semantics: >the solution to guilt is more speech instead of praxis vs >the solution to guilt is more speech instead of practice Second one is vague and unclear.

In English, the usual terms are theory and practice. Praxis is a synonym of practice, but it is rare and formal (for the marxist connection, see https://en.wikipedia.org/wiki/Praxis_School ). At any rate, what you wanted to say is maybe best expressed as "the solution to guilt is more speech instead of action."

I'm well aware of both the colloquial use of practice and "marxist praxis". I was simply implying that, as written, my statement didn't intersect marxism in any way and therefore couldn't have been misunderstood as such without willful misunderstanding.

Note that there are other uses of the word that also themselves don't intersect marxism in any way

https://www.ets.org/praxis https://www.luc.edu/socialwork/praxis/ https://en.wikipedia.org/wiki/Apraxia

Furthermore the precise definition of praxis:

>Praxis (from Ancient Greek: πρᾶξις, romanized: praxis) is the process by which a theory, lesson, or skill is enacted, embodied, or realized. "Praxis" may also refer to the act of engaging, applying, exercising, realizing, or practicing ideas.

is exactly what I intended (since I believe pg, and others I was implicating, pontificate but don't do much).

Re: How People Get Rich Now

#564

> It's easier now to start and grow a company than it has ever been. That means more people start them, that those who do get better terms from investors, and that the resulting companies become more valuable. This may be a quibble, because I think Paul Graham really means a certain type of high-growth startup in mind when he says "start a company". But the rate of new business formation in the US has fallen off a cl…

Actually, I think this is almost the perfect response to his article. It's not hard to imagine that a guy who made his fortune off of startups would be biased to think that everyone should create a startup and get rich that way. So, after correcting for rich guy tunnel vision, the statement "more people are starting companies" translates to "more people are starting technology companies in Silicon Valley." And of cou…

Agreed. Maybe unpopular opinion, but entrepreneur insights from CEOs are rarely valuable because no individual contribution outweighs sheer luck. Every day millions of people make smart decisions, take good risks, and work hard without significantly improving their conditions. It is pure survivorship bias to think individuals are capable of more than slightly nudging the cosmic needle if it happens to land near the right place.

It makes people uncomfortable to think that success is mostly a matter of luck. I am extremely lucky to be where I am in my career, and I greatly respect people who can admit this instead of rambling about “hustle.”

Re: How People Get Rich Now

#565

>So it's not 2020 that's the anomaly here, but 1982. The real question is why so few people had gotten rich from starting companies in 1982...a wave of consolidation was sweeping through the American economy Microsoft, Oracle, Apple, Bloomberg, etc were all started in the late 70's/ early 80's. Their founders are the richest people in the world. Seems like the question he's asking, though, is why weren't they obscene…

He said that poorly. But if you follow his point, he's saying that the richest people in the world in 1982 should have been the founders of companies in 1940 to 1960. He's not talking about those who founded companies in 1982; those are the richest people of 2020.

And so his point stands - why were the richest people in 1982 not the founders of companies?

Re: How People Get Rich Now

#566

> It's easier now to start and grow a company than it has ever been. That means more people start them, that those who do get better terms from investors, and that the resulting companies become more valuable. This may be a quibble, because I think Paul Graham really means a certain type of high-growth startup in mind when he says "start a company". But the rate of new business formation in the US has fallen off a cl…

Actually, I think this is almost the perfect response to his article. It's not hard to imagine that a guy who made his fortune off of startups would be biased to think that everyone should create a startup and get rich that way. So, after correcting for rich guy tunnel vision, the statement "more people are starting companies" translates to "more people are starting technology companies in Silicon Valley." And of cou…

> So yeah, rich guy writes a blog article saying essentially "people should just do what I did" and water is wet.

I think it's even better. Rich guy that became reach by funding tech startups says: "wanna become a billionaire? The easiest way nowadays is funding a tech company! I can help!"

Re: How People Get Rich Now

#567
post #332

Earlier quoted context omitted.

Speaking as someone with a not dissimilar background to yourself, and happening to have friends in similar circumstances. You might want to consider what it is, exactly, that you want out of your career. You already are in a position to give your children a 10x better life, if that’s something that drives you (this is a common denominator for a lot of people). The stress of chasing the 100x and the fear of the 0x, wi…

The heart defect thing definitely puts me in a weird psychological bucket when it comes to underlying drive/motivation. I've only met one adult that had similar feelings/views and they had childhood multiple recurrence leukemia. I have some concepts that I want to try to bring into the world. One is a first principles notes/app platform I've been using for personal use that upends how apps and data relate. The goal i…

I definitely relate to wanting to birth projects like this into the world! The ending-involuntary-homelessness one sounds particularly interesting to me, personally. I'd love to hear more about it.

A follow-up question, is there a reason you want the stab to be well-funded? As opposed to a FOSS, nominal-fee-for-hosting-bootstrap?

From my limited perspective, the worlds' most successful technologies, in terms of (value created) - (costs incurred for each impacted party) tends to follow the FOSS/open model.

Again, limited perspective, but having observed some "well-funded" things from the inside: being well-funded comes with the cost of an incessant demand for outsized and near-term returns.

This demand is, quite frequently, at-odds with net value creation. In fact, it urges your project to become re-distributive: sucking money from bottom-to-top, either directly from the global poor, or indirectly, through government subsidies funded by taxes that are paid by those who need an income to survive (86% of federal revenue comes from individual income tax + payroll taxes, in the US in 2019. 7% from corporations. https://www.taxpolicycenter.org/briefing-book/what-are-sourc...).

The redistribution passes through you, the founder, near the top, which is nice for you because you get to keep some of it, but it doesn't change the net value equation.

All this to say, if your goal is to create real, enduring value, you might be on the right path already, today!

Re: How People Get Rich Now

#568

Earlier quoted context omitted.

Exactly, pensions were considerably more common in the 1960s also, but at the end of the day, I don't really care if my retirement is actually funded by a pension or a 401k or by stuffing dollar bills under my mattress, I want to know when I can retire and how comfortably I can live when I retire. Yes, getting into the weeds is valuable, but here we're talking about the money in your bank at the end of the day, and t…

> why Because their decisions can drive a company into bankruptcy or transform it into a trillion dollar company. Your average line employee has no such leverage from their actions.

That would make sense as a post-exceptional-transformation windfall. Not as standard comp for keeping the seat warm while saying "yeah do more of that thing that prints money".

Re: How People Get Rich Now

#569
post #274

It's really interesting to see the world through PG's eyes. Kudos to him, I guess, for actually saying out loud what most of the mega-rich are unwilling to. Everyone who isn't like PG (so, 100% of the population) is finding it difficult to make enough money to have a life in the most basically fulfilling sense: education, retirement, support for loved ones, and good health. https://academic.oup.com/qje/article/129/4/…

> Everyone who isn't like PG (so, 100% of the population) is finding it difficult to make enough money to have a life in the most basically fulfilling sense: education, retirement, support for loved ones, and good health

This exactly. PG arguing the relevance of the Gini coefficient is oblivious to the the crumbling state of the public infrastructure in the US and the declining accessibility of high quality public goods to the working and middle class.

The Gini coefficient is an indicator, not an objective in and of itself.

Investment in public goods might even make the super rich even richer by making the corporations they own more effective through better trained workers and less loss due to poor infrastructure.

Re: How People Get Rich Now

#570

Earlier quoted context omitted.

Unless it's changed recently, I believe there is exactly one person on the billionaires list that started life in the bottom quintile -- Oprah. So you have a good question is all I'm trying to say.

https://www.forbes.com/real-time-billionaires/ #1 was born to a teenage mom (and an alcoholic/deadbeat dad). Since she was still in high school, I assume she was probably in the bottom quintile of income. #7 was given up by his mother and adopted. #9 was born in the Soviet Union. It's likely his family's income (in rubles) was in the bottom quintile of the United States at the time. (Sources I've found suggest that t…

Being in the bottom quintile for the US is not very relevant if you're not from the US. What matters far more is your position within your own society, as that's what gives you the safety net, connections, education, etc.
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