Don't extract value


1 Many people think that people that have accrued wealth have provided value to others. Whilst wealth is an indicator for exchanged value; it's not a determining factor for identifying someone that has provided value to others.

2 There are plenty of people that invest their wealth to acquire stake in companies that they don't have a hand in managing. These people are leaches that are looking to extract value from the people doing the brunt of the work. The only reason they invest their funds into companies is to get more value than they invested thereby extracting value.

3 These leaches are usually assigned roles such as "Financial Advisor" or "Asset Manager." Plenty of them are responsible for allocating funds towards stakes in privately and publicly traded companies. These stakes are expected to increase in value over time without any effort from the investor thereby creating an ingression point for people to extract value for other people's effort. This is why people in the financial industry are commonly disrespected.


4 A common argument used by people in the financial industry is that they are providing reciprocal value because they are providing funding to companies and getting value reciprocated at a later point in time. This is misleading because if a company needed funding then they could go to a bank and request a loan and retain control of the business. If a company cannot get a loan because their business model won't provide adequate cash flow to pay off their debt then the company shouldn't exist.

5 Artificial funding from external entities have significant negative impacts in every industry. It stifles competition by allowing investors to bolster incompetent businesses which allows said businesses to buy innovative companies thus allowing stagnant businesses to control markets.

6 It also promotes wealth creation without innovation which results in the average person becoming unmotivated to solving problems.

7 This issue is cyclical and can only be combatted by resisting the temptation of the easy way to wealth. The dedication to solving problems is the only path to wealth and respect amongst the masses because it requires you to create value instead of extracting it.