If
you understand Compound Interest, then you understand Privilege. The same “merit”
applied to more Capital will result in a bigger reward. Reinvested rather than
spent, it can grow. That is why hereditary privilege is a part of generational
wealth creation. Our lives are short. If we spend everything, the next
generation is always starting again. Starting without a buffer for emergencies.
Starting without space to breathe. Money making requires skills and knowledge,
but is completely ambivalent to the back story. Unless we add barriers to
entry. Institutions, networks, communities, inheritance, prejudice and
regulation. Real merit doesn’t care how much effort you put into learning to
solve the problem, or who Mom and Dad were. The key is being able to solve the
problem. Whether it is because you watched a YouTube video, or studied for 20
years. But. If you are a moron with money, you still get a seat at the table.
Again, the back story doesn’t matter. Money is the story. Real meritocracy
would be smart money. Able to connect people with voices hidden by their lack
of capital. Money that understood history.
Knowledge and Capital are Intergenerational
