This Is How Money Works | Jordan Peterson | Summary and Q&A

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March 21, 2022
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This Is How Money Works | Jordan Peterson

TL;DR

The distribution of wealth and creative production follows a natural law where a small minority holds the majority of resources, and this applies to various aspects of life.

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Key Insights

  • 💰 The distribution of wealth follows a pattern where a tiny percentage of the population controls the majority of resources, which extends across all creative production domains.
  • 🎮 The distribution of wealth can be compared to a game of Monopoly, where one person consistently ends up with all the money due to random trades.
  • 🌍 It is challenging to effectively redistribute resources from the minority to the majority without it flowing back up to the top, creating a complex problem to address.
  • 🎵 Numerous creative domains, including classical music composition and record sales, follow the same pattern of wealth distribution.
  • ⚽ The distribution of goals scored in hockey and the size of cities also exhibit a similar distribution of wealth, illustrating the ubiquity of this phenomenon across various areas.
  • 🌾 The collectivization of farms in 1920s Russia resulted in the persecution and extermination of successful farmers, leading to widespread famine and emphasizing the dangers of class and ethnicity-based guilt.
  • 🌈 The danger of classifying an entire group as guilty based on their group membership is highlighted, drawing parallels to the current discussion in North America about race and ethnic-based guilt.
  • 💡 Financial success is often tied to high intelligence (IQ) and conscientiousness, which can help individuals beat randomness over time, but the success can also be influenced by chance and other dimensions of evaluation.

Transcript

one percent of the people in the general population have the overwhelming amount of money and one tenth of that one percent has almost all of that right so i think it's like the richest hundred people in the world have as much money as the bottom two and a half billion and you think well that's a terrible thing and perhaps it is but what you have t... Read More

Questions & Answers

Q: Is the wealth inequality in society solely a result of an oppressive system?

Blaming wealth inequality solely on an oppressive system oversimplifies the complexity of the problem. While the distribution of wealth and creative production is inherently unequal, finding a consistent solution to bridge the gap remains a challenge.

Q: What are some examples of industries or domains where the distribution of wealth follows this natural law?

The distribution of wealth and creative production applies to various industries, such as music (where a few composers contribute a significant portion to the classical repertoire), sports (where goal scoring follows a similar pattern), and even city sizes.

Q: How does the law of wealth distribution relate to the concept of class and guilt in society?

The law of wealth distribution is similar to how class and guilt were used in the Soviet Union during collectivization. By labeling successful farmers as socially unfriendly elements, the government justified taking away their land and resources while leading to disastrous consequences like the Ukrainian famine.

Q: How does self-deceptive blindness impact one's financial success?

If an individual's character is disrupted by self-deception, such as ignoring the reality of their financial situation, they are more likely to face financial difficulties and make poor investment decisions. This pattern is often observed in clinical practice, resulting in individuals quickly burning through their money.

Q: What personality traits contribute to financial success?

According to the video, having a high IQ and being conscientious are traits that increase the likelihood of financial success. However, it is acknowledged that these traits are also influenced by chance and may be a result of the individual's past survival advantages.

Q: Is poverty solely caused by a lack of money?

No, poverty is not solely caused by a lack of money. The ability to manage money effectively plays a significant role in overcoming poverty. Additionally, factors such as low IQ and susceptibility to scams contribute to poverty as well. Simply giving money to individuals may not solve the underlying issues.

Summary & Key Takeaways

  • The distribution of wealth and creative production follows a natural law, resulting in a small minority having the majority of resources.

  • This law can be seen in various domains such as the music industry, city sizes, and sports.

  • Shifting resources from the wealthy to the less fortunate is a complex problem that society has yet to effectively solve.

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