patrick.net

Peter P says

Most of the successful people started with nothing.

40% of the individuals who appeared on the Forbes list of wealthiest people received a "significant economic advantage in their lives by inheriting a sizeable asset from a spouse or family member." More than 20% received sufficient wealth to make the list from this inheritance alone. Of the rich countries listed by the OECD, the three in which men's earnings are most likely to resemble their father's are, in this order, the UK, Italy and the US. If you are born poor or born rich in these nations, you are likely to stay that way.

Equal opportunity, self-creation, heroic individualism: these are the myths that predatory capitalism requires for its political survival.

Peter P says

Also, for a lot of people, they drank the wrong cool aid like working hard for someone, getting a degree, diversify, etc.

As in most things in life-it depends. I know a couple who worked for others .One was a police officer and retired at 50 and the other an IT worker-yeah working for somebody with a degree. Two houses in the bay area, payed off, he gets pension and still works as a security guard for concerts, games at the arena etc. She still works part time now-because she is bored.

I also know plenty of people who were in business -some for a long time- and don't have a pot to pee in.

It depends-what works for some will not work for others. Extreme ideology is not good-unless of course you are in politics and making a ton of money out of suckers.

finehoe says

Equal opportunity, self-creation, heroic individualism: these are the myths that predatory capitalism requires for its political survival.

With the occasional power ball winner thrown into the mix to give the peasants hope.

Peter P says

Most of the successful people started with nothing.

All businesses exist within a vast network of human connections — customers, vendors, employees, investors and the communities that support their work. Saying you did it all yourself and therefore don’t owe anybody anything is about as absurd (and self-centered) as saying that you raised yourself from babyhood, without any input from your parents, and therefore don’t have any further obligations to your family.

Risk taking is comparatively cheaper for those with less to lose.

The middle class offers the worst risk reward ratio though. They tend to have something they cannot afford to lose.

That is a separate problem.

finehoe says

Peter P says

Most of the successful people started with nothing.

All businesses exist within a vast network of human connections — customers, vendors, employees, investors and the communities that support their work. Saying you did it all yourself and therefore don’t owe anybody anything is about as absurd (and self-centered) as saying that you raised yourself from babyhood, without any input from your parents, and therefore don’t have any further obligations to your family.

Don't be concerned with who you owe. That is not relevant. The market is a system in which participants push against each other. A struggle at the individual level.

Peter P says

Don't be concerned with who you owe. That is not relevant.

It is relevant if we want to live in a system where people coming after us also have the opportunity to succeed.

Ignoring the benefits that one reaps from the system marginalizes the contribution that the system played in ones success, and a marginalized system is going to be less effective at helping others also succeed.

My point is that participating in the market is all that matter. All debt, karmic or not, is reflected in the system.

If there exists a system with which self interest leads to the greatest good, is it even selfish to act for oneself in the context of this system?

Peter P says

If there exists a system with which self interest leads to the greatest good, is it even selfish to act for oneself in the context of this system?

Who the hell knows, but that in no way proves or supports your assertion that the US has the best social mobility in the world.

Peter P says

If there exists a system with which self interest leads to the greatest good, is it even selfish to act for oneself in the context of this system?

I depends on how one defines the "greatest good". I think that you could ask 10 different people and get 10 different ideas on what the greatest good is.

I for one don't think that installing an aristocracy would be serving the greatest good.

As long as we are waxing philosophical we might as well ask, are we even capable of taking an action that is not selfish?

finehoe says

Who the hell knows, but that in no way proves or supports your assertion that the US has the best social mobility in the world.

I don't think that there is any data that supports the idea that the US even has close to the best social mobility in the world.

finehoe says

Peter P says

If there exists a system with which self interest leads to the greatest good, is it even selfish to act for oneself in the context of this system?

Who the hell knows, but that in no way proves or supports your assertion that the US has the best social mobility in the world.

It is about the possibility of becoming rich without being born in a rich family.

This is vitually non-existent outside of the US except in places where illegal corruption is commonplace

Peter P says

It is about the possibility of becoming rich without being born in a rich family.

This is vitually non-existent outside of the US except in places where illegal corruption is commonplace

Absolute and total nonsense. There is plenty out there that refutes this. Huffington post had an article recently on it, http://www.huffingtonpost.com/howard-steven-friedman/class-mobility_b_1676931.html . BBC ran a series maybe 5-6 years ago called Self Made Man (or something like that) that profiled people in Europe that became rich.

Forbes top 10 richest people only has 3 Americans. Of the 7 others 4 (Carlos Slim, Armancio Ortega, Li Ka-shing, and Karl Albrecht) came from middle class or lower back rounds. I'm sure if you continue down the list the pattern won't change.

But how old are they? Do those places create 30-year-old billionaires?

Did they make the money before the advent of the welfare state?

Peter P says

But how old are they? Do those places create 30-year-old billionaires?

bob gave you the links and names to answer these questions for yourself. I do see a lot of evidence that the US has, relative to other developed nations, poor mobility, but you have presented zero evidence to support the great mobility claims you have been making.

http://hustleb.blogspot.com/2012/08/billionaires-under-age-of-40.html

Most young self-made billionaires in the developed world are still American.

Peter P says

Most of the successful people started with nothing. My two heroes are the prime examples: George Soros, Dennis Washington

You have to be joking. You think most of the successful people in the United States came from nothing?

Peter P says

http://hustleb.blogspot.com/2012/08/billionaires-under-age-of-40.html

Most young self-made billionaires in the developed world are still American.

Oh, are those the only billionaires under the age of 40? You may also want to look at per/capita billionaires under 40. The US is a very populous country. Without better context that article is just anecdotal evidence.

Also funny, of the 20 on that list 11 had--right there in their bios--clear indication that they started life with a silver spoon in their mouth (two were from the same wealthy dad). At least one other on the list I recognized as a silver spoon child, and I would bet that a little digging on the others would show that they all came from privileged backgrounds.

…Harvard roommate …

…officially inherited his fortune in 2001 on his 18th birthday…

…one of four children of the late energy pipeline entrepreneur Dan Duncan, the former richest man in Houston…

…together at Harvard…

…transferred his holding of the family's main fortune… her fortune drop dramatically since…

…son of slain Lebanese Prime Minister Rafic Hariri …

…second-youngest son of slain Lebanese Prime Minister Rafik Hariri, who left behind a fortune now shared by his five children…

In December 2010 German publisher Heinz Bauer, age 72, transferred 85% of the limited partnership of the family-run business to his daughter...

…became the face of his father's company…The family owns a private island…

A direct descendant of Peter Stuyvesant, Coleman is a Deerfield and Williams grad…

…Graduate of Kyiv State Economic University…

I am not sure how this leads you to believe that most young self made billionaires are made in America.

leo707 says

Peter P says

http://hustleb.blogspot.com/2012/08/billionaires-under-age-of-40.html

Most young self-made billionaires in the developed world are still American.

Oh, are those the only billionaires under the age of 40? You may also want to look at per/capita billionaires under 40. The US is a very populous country. Without better context that article is just anecdotal evidence.

So, looking further in to the numbers on the 20 billionaires under 40...

Ranked in per-capita output of billionaires under 40:
China -least
Russia
Japan
US
Germany
Ukraine
Hong Kong
Lebanon
Columbia -most

Looks like Columbia is the best at cranking out young billionaires.

Fine. I think I have made some horrible arguments.

Peter P says

Fine. I think I have made some horrible arguments.

I am all ears if you want to make some better ones ;)