Live data from Hacker News

How to earn a billion dollars

paulgraham.com

291–300 of 1001 posts

Re: How to earn a billion dollars

#291

There's an older tradition of thought on the matter with better intellectual pedigree and epistemological hygiene: "Behind every great fortune lies a great crime." The easiest way to earn a million dollars is to start a business that makes sense and work your ass off running it well. Maybe that's even the easiest way to reliably earn ten million dollars, a million isn't what it used to be. But at some scale that's fa…

PG actually addresses this in other essays. That adage does have more history. But the world literally changed; 1. In pre-industrial society there is less technological leverage, so that it’s very difficult for an incidental or group to help very many people. Perhaps the closest analog before then was land discovery or conquest (taking other people’s stuff). 2. Post-enlightenment society is one of the first which doe…

My copy of Hackers and Painters is the first printing, I'm extremely versed in the last twenty years of pg's writing and public speech, and the glowing arc of that thought over that time.

Early pg wrote about Lisp and engineers should do their own testing and commodity FreeBSD on commodity Intel was better than Oracle on Sun for starting a company.

He wrote that makers and managers needed different schedules. He wrote that math has asymmetrical upsides. He wrote that you do things that don't scale while you're in the garage.

In his wheelhouse he was best in the genre, maybe not the Balzac he fancies himself as an essayist or the painter he fancies himself at all, but the best guy to listen to if you were doing a garage band startup that involved the Internet. He was surrounded by legitimate legends like Robert Tappan Morris and Trevor Blackwell, and he wrote about things he understood.

Late Soviet Paul Graham exists as the lobbyist for Garry Tan Y-Combinator, which isn't even really prestigious anymore. As far as the signalling value goes? I'd rather have a strategic from NVIDIA before YC. I would think about YC's money if literally no one else was interested. This is "ChatGPT Tha License Dawg", "die motherfuckers die motherfuckers die" tweets tagging elected officials Y-Combinator he's defending, and the vampire companies he cites as his clean wins are suitable filleted in the rest of the thread that mine would be redundant.

And the real mile marker of a guy whose audience has exceeded his depth is that he's lecturing a room full of people about how a single operation on the iPhone calculator app can teach you more about government and economics than is apparently understood by someone who has survived eight years in Congress designed to destroy people like her, who has an Economics degree cum laude from Boston University that she got while working as a bartender to support herself and her family after her father died, a situation with no parallel in pg's life or that of anyone adjacent to him in either it's highs or lows.

I got into this business substantially because pg's writing was so motivating to twenty year old me, and for that I'm still grateful. And just like I hope Kanye gets back on his Lexipro and starts making great music again, I hope that pg goes back to his roots and starts printing great technical and startup essays again instead of spewing solid waste.

But just like I can't follow Kanye down the "death con three to the jews in hollywood" road, I can't follow pg down the "think about the billionaires and don't listen to the honors economist multiple-term congresswoman" road.

One is dramatically more offensive in it's form, one is dramatically more toxic in it's substance, because there are people who take it seriously.

Re: How to earn a billion dollars

#292
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…

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.

The word "extracted" does not betray a belief that value cannot be created. You can "extract" value that is created just as you can extract value that was there already. The question is not whether or not value was created, the question is who deserves to control the value that was created.

The fact is the billionaire managed to extract value from the market. The ethical question is: who deserves to get the value that was created by the market? The answer could be "the founder" but it could also be the funder, the worker, the customer, the political structure that enables the market economy, the mother of the funder who raised them to be hard working, the nurse that treated the founders minor illness in an early stage and prevented it from causing a physical disability, etc.

Re: How to earn a billion dollars

#293
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 blunt and misrepresentative You should read that as a self-preservation technique. The eager use of a strawman tells us PG heard AOC's words as an attack against him personally, his business, and his friends. So the essay is not a reasoned retort but more an emotional self-defense to soothe a bruised ego. It's to assure himself that no -- in fact he did earn his wealth fair and square, and to imply otherwise sho…

Plenty of us non-billionaires are glad PG wrote this article, because a lot a success-striving people are pretty grossed out by the lie that the only way to be a self made billionaire is to do something 'bad'.

Re: How to earn a billion dollars

#296
post #165
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…

>Period. That's it, and it's inarguable.

No it's not, it's actually extremely easy to prove wrong: J.K. Rowling.

Re: How to earn a billion dollars

#297
post #158

Technically if you look at AOC's statement he mentions >AOC: “There’s a certain level of wealth and accumulation that is unearned. You can’t earn a billion dollars. You just can’t earn that. You can get market power, you can break rules, you can abuse labor laws, you can pay people less than what they’re worth, but you can’t earn that” there's some truth there in that PG is talking about capital gains as the owner of…

Putting the scale of dollars and the startup world aside, AOC’s comments read that way would suggest a farmer who gets a series of loans from the bank to help him expand his family farm from a $200K sole proprietorship to a $10M sole proprietorship didn’t “earn” it either. I don’t think a definition of “earn” that excludes cases like that captures the generally understood meaning.

I don't think putting the scale of dollars aside is reasonable when the entire point is contingent on the scale being at least two orders of magnitude higher and sole proprietorships usually don't scale to the point where fines from ignoring regulations is just the cost of doing business.

Re: How to earn a billion dollars

#298
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…

Here is one oft-repeated quote: https://www.usatoday.com/story/news/politics/2026/05/12/aoc-.... Her statement is properly interpreted by pg.

Re: How to earn a billion dollars

#299
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…

Everything is extractive. Farmer plants seeds, partially sets the environment. The work is done by the seed/sun/soil/water. And so is every profession: labour or not. Most of the business are structured in such a way that someone can exploit them to make even more money. The whole vendors and b2b system is mutual extraction. Looking through wages and trying to find a ceiling(by time/effort) on the value creation by a…

The point of farming is literally to "extract the value" that something else creates.

> The work is done by the seed/sun/soil/water.

and the farmer collects. It's not that the farmer does nothing or deserves nothing. But it is precisely the same as the capitalist model: the capitalist sets the stage for labor to do the work, and then collects.

As others have noted, the central question is who gets to benefit from what is created and why.

Re: How to earn a billion dollars

#300
post #221

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.

There is a finite amount of land on earth, and a finite amount of most natural resources. We currently have no indication we will EVER develop faster than light technology. Any discussion not grounded in those facts is a dishonest discussion. It is a zero sum game until those externalities change because ultimately our species is built upon extraction resources to produce wealth. It IS a zero sum game until you or so…

Isn't most of our economic growth based off inputs of energy (in the form of labor, electricity, etc) that ultimately derive from the sun, though, rather than primarily non-renewable non-recyclable resource extraction? The sun is technically a non-renewable resource, I guess, but only on cosmic timescales.
Post reply on HN