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How to earn a billion dollars

paulgraham.com

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Re: How to earn a billion dollars

#181

Post by sofard »

AdamN wrote: post #124

She meant impossible in that one doesn't earn a billion dollars through work alone. The only way to get there is to set up a structure that extracts a billion dollars from a market (usually by building a structure that's more efficient but also generates externalities that are not borne by the person getting the billion dollars). pg's reading of it is so blunt and misrepresentative that I'm nervous about what kind of…

I think there are many arguments against AOC's comments, but I agree that PG here is misrepresenting her point.

I don't think anyone reading PG's blog is clueless about the power of compounding or the difference between salary and wealth through asset growth.

Her point is essentially whether the entire capital system is "fair." And to be fair to PG I don't think AOC articulated a particularly strong point either.

Re: How to earn a billion dollars

#182

Post by ceejayoz »

christkv wrote: post #154
AdamN wrote: post #124

She meant impossible in that one doesn't earn a billion dollars through work alone. The only way to get there is to set up a structure that extracts a billion dollars from a market (usually by building a structure that's more efficient but also generates externalities that are not borne by the person getting the billion dollars). pg's reading of it is so blunt and misrepresentative that I'm nervous about what kind of…

So what does you practical utopia look like in real terms. What's the master plan beyond I don't like people making money from what people want? What does that utopia look like in practice.

> So what does you practical utopia look like in real terms.

When you hit a hundred billion in net worth, you get a nice solid gold plaque that says "I won capitalism", you get an attaboy from the UN, and we start taxing the shit out of wealth over that cap.

Adjust periodically for inflation. (Do that for minimum wage while we're at it.)

Re: How to earn a billion dollars

#183

Post by 3uler »

I don’t know if this take is just naive or dishonest…

building something people love can make you a billionaire, but most billionaires did not build something people love, and most people who’ve built something people love are not billionaires.

Re: How to earn a billion dollars

#185

Post by inigyou »

ZeroGravitas wrote: post #82

He seems to be regressing, he said this in January: > The rational fear of those who dislike economic inequality is that the rich will convert their economic power into political power: that they’ll tilt elections, or pay bribes for pardons, or buy up the news media to promote their views. > I used to be able to claim that tech billionaires didn't actually do this — that they just wanted to refine their gadgets. But…

He writes for an audience and knows what he's doing.

Re: How to earn a billion dollars

#186

Post by fractallyte »

blitzar wrote: post #137
blfr wrote: post #23

But the accounting difference is real. It is virtually impossible to earn a billion dollars. What is possible but still difficult is to create something worth a billion dollars which you can then sell if you choose so. And to the people criticizing, this is cheating. To them, a billion dollars enterprise is not possible without the exploitation of employees, customers, or at least the environment. Also, the most impo…

Having to pay a fat wedge of tax every year on what you "earn" sucks a lot of the life out of the compounding effect.

Only up to a certain threshold – after which you can afford "creative" accounting which reduces the tax burden and restores the compounding effect ;-)

Re: How to earn a billion dollars

#187

Post by inigyou »

AnimalMuppet wrote: post #67
yawpitch wrote: post #33

Absent circumstances of four digit inflation rates, one cannot earn a billion dollars… one can only accumulate a billion dollars. If one ever does so, one has definitely done something morally indefensible.

What, exactly , is the morally indefensible thing that they have definitely done? If it's definitely there, you should be able to point out what it is.

Apple, for example, steals 30% of the money of anything you buy on your phone.

Re: How to earn a billion dollars

#188

Post by enriquto »

inigyou wrote: post #146
TheTaytay wrote: post #129

Earlier quoted context omitted.

Your phrase “extract” betrays a fundamental disagreement with what Paul is saying. (Externalities does so again) It assumes a zero-sum game where the job is to shift money from one person to another. Value, and thus money/wealth can be created. Literally. You are saying, in different words, that no one can do it “honestly”. He is saying one can.

Yes, and the art of this game is to extract value which you did not create. It may or may not come alongside creating value. Uber creates value in the form of an app marketplace for taxis, but it also pushes taxi wages down below the sustainability line without pushing prices down that far, and pockets the difference for itself. Apple made a cool phone that it sells for a high but fair price, but it also takes 30% of…

> the art of this game is to extract value which you did not create

in common parlance, theft

Re: How to earn a billion dollars

#189

Post by groundzeros2015 »

CPLX wrote: post #165
AdamN wrote: post #124

She meant impossible in that one doesn't earn a billion dollars through work alone. The only way to get there is to set up a structure that extracts a billion dollars from a market (usually by building a structure that's more efficient but also generates externalities that are not borne by the person getting the billion dollars). pg's reading of it is so blunt and misrepresentative that I'm nervous about what kind of…

His entire essay is just based on a purposeful misreading of the opposing point. It's a straw man. And if you look at his history it's obviously intentional and part of his usual style of argument. The actual opposing argument is that it's impossible to create a billion dollar enterprise without a group effort, and for one person to end up with a billion dollars necessarily means that they made decisions within that…

> it's impossible to create a billion dollar enterprise without a group effort

George Lucas made a movie with a (small) group effort. But what made a billion dollars is his Star Wars universe which is almost entirely his creation.

It literally creates wealth for other people. If my toy sells $10,000 without Star Wars and $100,000 with it, did I participate in making George’s billion, or am I benefiting from it?

> means that they made decisions within that enterprise that resulted in a lopsided allocation of resources at the end.

What do you mean? Every good and service involves many people, but the degree to which they participate in its creation and risk vary. For example, a Farmer may create a more efficient way to grow food. Is the grocery store now entitled to a piece of the reward? They didn’t change anything, all of the improvement is the farmer side.

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