Because people continue to not get a lot of the points I try to make, I will state again that I believe that IQ is highly correlated with one’s ability to create value, but that the amount of wealth a person accumulates has relatively low correlation with the amount of value that person created. This is because:
(1) Value creation isn’t highly rewarded by society. Most people who create a lot of value have a substantial percentage of the value transferred to their employers, and thus transferred to C-level executives and investors (and then a lot of the value transferred to investors gets re-transferred to Wall Street intermediaries).
(2) Value creation is a linear activity, which means that the amount of value that the world’s smartest and hardest working person can personally create is probably limited to a few hundred thousand dollars a year before he burns out. But value transference is logarithmic, so the best value transferors can and do make billions.
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Also, I believe that various societal institutions spend far too much time studying poverty and not enough time studying wealth.