Sunday, July 08, 2007

Why do some people make more money than others?

I tried coming up with an answer to this using two orthogonal traits: talent and ambition. Note that in this article, I mean 'talent' to be 'effective talent', hence a talented but lazy person is classified as having effectively 'no talent'.

So here is the trait-scenario table I came up with to analyze various types of people:

Traits
Possible outcome
No talent, No ambition
Bum
Talent, No ambition
Overworked, underpaid
Talent, Ambition
Executive, Top specialist, Rock star
No talent, Ambition
Politician
Trait-Scenario Table No. 1: Talent and Ambition

Well, no offense to politicians, but most political systems require no other criterion for office, except ambition. Also, the table entries are in a 'P implies Q' relationship: it doesn't necessarily mean that politicians have nothing except ambition, but one can be a politician armed only with ambition and nothing else.

And bums do have tough luck. Because my notion of talent means 'effective talent', people who have have potential but have been unable to develop it are also inadvertently classified as having 'no talent'.

Furthermore, there are a lot of people with neither talent nor ambition who are well off; the above table does little to explain the world's distribution of wealth. So I decided to factor in the luck column for a somewhat better picture:

TraitsTough luck
Lucky!
No talent, No ambitionBum
ala Paris Hilton
Talent, No ambitionOverworked, underpaid
Paid enough, content
Talent, Ambition'Almost' executive, 'almost' rock star, but never there
Executive, Top specialist, Rock star
No talent, Ambitionala Al Gore
ala Bush
Trait-Scenario table No. 2: Talent, Ambition and Luck

Conventional wisdom would state that talent that fulfills our needs is rewarded. However, after looking at my trait-scenario tables, I have come under the impression that:

Talent is what the world needs, but luck and ambition are what the world rewards.

So sad.
Maybe I should come up with a less depressing model.
Or find happier thoughts about the current model.