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Saturday, May 22, 2010

How to make wealth

How to Make Wealth is a great and enlightening essay. Paul Graham is great writer and thinker.

Here I highlight 3 excerpts (or paragraphs) from the above essay.
I can remember believing, as a child, that if a few rich people had all the money, it left less for everyone else. Many people seem to continue to believe something like this well into adulthood. This fallacy is usually there in the background when you hear someone talking about how x percent of the population have y percent of the wealth. If you plan to start a startup, then whether you realize it or not, you're planning to disprove the Pie Fallacy.

A programmer can sit down in front of a computer and create wealth. A good piece of software is, in itself, a valuable thing. There is no manufacturing to confuse the issue. Those characters you type are a complete, finished product. If someone sat down and wrote a web browser that didn't suck (a fine idea, by the way), the world would be that much richer.

Understanding this may help to answer an important question: why Europe grew so powerful. Was it something about the geography of Europe? Was it that Europeans are somehow racially superior? Was it their religion? The answer (or at least the proximate cause) may be that the Europeans rode on the crest of a powerful new idea: allowing those who made a lot of money to keep it.

Hackers & Painters was a great read and it's one of my all-time favorite books. If you don't want to buy the book you can read the essays at http://www.paulgraham.com/articles.html


By the way, there is a bug in the last index page, of Hacker & Painters. Can you spot it?

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