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Part of the answer, he realised, was that it represents rent-seeking: fighting over the spoils of productive activity rather than creation of new wealth.
There is the same onrush of innovation; the same straining at the social fabric as immigration surges, industries restructure and inequalities widen; and the same pell-mell creation of new wealth.
Instead of the faster wealth creation promised, money poured into activity – takeovers, private equity, property and financial engineering – that delivered fortunes through the transfer of existing, rather than the creation of new, wealth and businesses and jobs.
As venture capitalist John Doerr has said, the Internet will be the biggest legal creation of new wealth ever.
In Silicon Valley, where the creation of new wealth has far outpaced the rest of the country, the ratio of men to women doesn't come close to that of Alaska where, 20 years ago during the building of the oil pipeline, single women flocked in search of love and money.
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But if the underlying value of the businesses has not changed, then the creation of new shares simply dilutes the wealth of existing investors.
Up until now, retail investors have rarely shared in the early-wealth creation of new public offerings.
1. discovery, definition, and exploitation of opportunities 2.enhancement of social wealth 3. creation of new ventures 4. innovativeness Source: (Catania 2012; with modifications and additions by the authors).
If Silicon Valley's top 50 billionaires earmarked a fraction of their wealth to the creation of new engineering universities, we could build more than 50 new Olin Colleges.
Venture capitalists, early round investors in new companies and firms that underwrite their initial public offerings all facilitate the creation of new companies and the creation of jobs and wealth, and profit from it.
The focus has to be on facilitating the creation of new firms, helping them evolve to create jobs and wealth.
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creation of national wealth
creation of new marketing
creation of new debt
creation of new grammar
creation of new population
creation of private wealth
creation of new robustness
creation of great wealth
creation of new binding
creation of real wealth
creation of new life
creation of new material
creation of new housing
creation of new knowledge
creation of tradeable wealth
creation of new software
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com