If you’re so smart then why aren’t you rich?
Here is the answer
March 03, 2018
(NATIONAL) – You’ve no doubt heard the well worn adage (maybe numerous times in your life), “Well if you’re so smart buddy boy, then why aren’t you rich?"
There’s a new answer to that question and it is based on rigorous scientific research. Turns out that being rich is mostly just chance and in addition, most of the successful people around the planet are not the most talented, just the luckiest, a new computer model of wealth creation confirms.
Eighty percent of the wealth is owned by 20 percent of the people. There was also a report last year that said just eight men on this planet had a total wealth equivalent to that of the world’s poorest 3.8 billion people.
Why do so few people have so much? The answer that many people buy into is that the rich are rewarded for their hard work, extraordinary talents, intelligence, the hours they put in, etc.
Yet many studies have shown that the wealthiest people are generally not the most talented and they may put in fewer hours than a single parent who hustles two to three jobs to make ends meet.
Enter now from stage left, one Alessandro Pluchino at the University of Catania in Italy and a couple of his colleagues. They created a computer model of human talent and the way people use it to exploit opportunities in life and their model allows the team to study the role of chance in this process.
The results are something of an eye-opener. Their simulations accurately reproduce the wealth distribution in the real world. But the wealthiest individuals are not the most talented (although they must have a certain level of talent). They are the luckiest. And this has big implications for the way societies can “optimize the returns they get for investments in everything from business to science.”
The math. It’s done with numbers. They’re not guessing about any of this.
And the math, the formula shows clearly “The wealthiest individuals are typically not the most talented or anywhere near it. “The maximum success never coincides with the maximum talent, and vice-versa,” say the researchers.
So if not talent, what other factor causes this skewed wealth distribution? “Our simulation clearly shows that such a factor is just pure luck,” say Pluchino.
The research shows this by ranking individuals according to the number of “lucky” and “unlucky” events they experience throughout their 40-year careers. And it’s “evident that the most successful individuals are also the luckiest ones and the less successful individuals are also the unluckiest ones.”
Details here .