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I've talked with Nick (the author) on several occasions, he was regular contributor at Microprocessor Forum. He is a really awesome guy.

That said, he's also got a lot of scars from the dot com era (many of us do) and I suspect if he rewrote this piece today, he might see it differently (or not). I've been told that it is easier to accumulate a lot of money if you are soulless. That allows you to take advantage of things that cause emotional stress and financial harm to others who are unable or unwilling to prevent you from taking their money in a "perfectly legal"[1] way. So when select randomly from the population of people who are very wealthy, your chance of picking someone who has your interests second to theirs is better than 50/50. It may by 3:1 (if you believe Vinod's comments at TechCrunch). To survive you have to not take it personally, and expect it to occur. Generally even the 'nice' VCs understand that it makes sense to take this position. You always have to compartmentalize dealing with people in "business" and dealing with them "socially."

[1] This phrase was often code for taking money from someone that may or may not have wanted to give you that money, and yet did not involve fraud or violating any laws. In the 90's it was "perfectly legal" to create a company and take it public to 'retail investors' where the first round cashes out the founders and VCs to the tune of several million while knowing the people reading the prospectus didn't "get it."



"it is easier to accumulate a lot of money if you are soulless"

Interesting point. I believe it to be true, but haven't found any proof or good evidence. Any help?


I don't have proof or evidence, but I do have another way to phrase it that might make it easier to come across both:

There are only three "evergreen" ways to make money, when other people have access to your business model:

A. doing something too hard for anyone else to copy;

B. doing something too capital-intensive for anyone else to attempt (e.g. PayPal, SpaceX);

or C. doing something too distasteful for anyone else to want to touch.

All other markets will be commoditized.


Counter-example: Coca-Cola.


That is satisfyingly succinct.


Ethics are a constraint on your actions. The question is whether unethical people have any similarly strong constraint.


There may be some supporting evidence in book I read recently, "Wisdom ot the Psychopaths".

Wealth (and power) are apparently easier to accumulate if you do not suffer from unwanted emotional responses. The book lists several examples, and provides a number of potential reasons. I can dig the book out later today and find some proper sections to quote, if needed.

Interestingly enough, the author uses the term psychopath in context I have usually associated with sociopathy.


It is an interesting debate, mostly centered around the chicken and the egg, which is do evil people become rich? or do rich people become evil? And its an area I've wondered about as well as I've personally known lots of people who have gone from 'not rich' to 'rich' and was able to observe some before and after studies.

This was a recent PBS NewsHour report on the Psychology of Wealth (http://www.pbs.org/newshour/bb/business/jan-june13/makingsen...) which included this comment:

"One of the things that wealth and money does is it comes with a set of values, and if you want a deeper ideology, and one of them is, generosity is for suckers and greed is good. But it turns out, there are a lot of new data that show, if you're generous, and charitable, and altruistic, you will live longer, you will feel more fulfilled, you will feel more expressive of who you are as a person. You probably will feel more control and freedom in your life."

My observation over the years watching people become millionares and billionares is that there is a switch that people do when they go from 'not rich' to 'rich' where they have to somehow rationalize their wealth relative to their friends who are still not wealthy. My first exposure was at Sun (I joined on the Monday after they had gone public) and a number of people were thinking they were better off than before, but by the time I left nearly 10 years later many knew they were much better off.

One of the more common rationalizations was they 'deserved' it, there was something special about what they had done, or what they brought to the company that made the company (and them) successful. Lots of things to point too and remember to give some meat to that belief. I met people who were fired at Sun for being incompetent, got jobs in start ups that went public during the dot-com boom, became multi-millionares and got fired again and still believed it was their "specialness" that made them rich, not random chance.

My best guess is that when you are rich you become a target for people who want to be rich but aren't. This is a common fate of lottery winners who often lose all their winnings in a relatively short time for reasons that are not altruistic or fulfilling. Makes me wonder what divorce rates are for lottery winners compared to the general population. Being so targeted can make you cynical, and perhaps push you toward being evil.

There is lots of research into the topic, lately its been a bit trendy because the disparity between wealth and non-wealth in the Bay Area and elsewhere makes for good page views (and discussion).

From the perspective of VC's, which are a self selected group of people with money, they are often people who are rich and trying to get richer still, and it perhaps that trait which selects for soullessness. People who get rich, stop work, and spend the rest of their days doing things that make them happy are not in that group so the results skew.


To be fair, there are lots of poor and middle-class people who get constantly fired yet think they're special, too.

(But the point you're making is interesting and makes a lot of sense)


the idea of money flowing towards stability and away from instability is one worth toying with, in my opinion.


Is the Microprocessor Report still a worthwhile mag?


*note: it's of course not a magazine, but I wasn't sure what to call it... "publication"?




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