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There are two ways of making money. The first is what most of us do: work. That means tapping into our knowledge and know-how (our “human capital” in economic terms) to create something new, whether that’s a takeout app, a wedding cake, a stylish updo, or a perfectly poured pint. To work is to create. Ergo, to work is to create new wealth.<p>But there is also a second way to make money. That’s the rentier way: by leveraging control over something that already exists, such as land, knowledge, or money, to increase your wealth. You produce nothing, yet profit nonetheless. By definition, the rentier makes his living at others’ expense, using his power to claim economic benefit.
If we’re not working in order to get rich, then why are we working at all? What are we supposed to do all day? Just sit home and watch TV? Not at all, but thinking so is a temporary phase many people go through — when the values of the old world no longer have a hold on us, but the values of the new don’t yet grab your soul. They will.
Some people work just to make the money to support the other things in their life that provide meaning, be it a family or a cause or a hobby that may seem silly to you or me but is central to their individual pursuit of happiness. Some people don’t work for money at all. Priests, stay-at-home parents, and volunteers in a thousand different institutions aren’t pursuing wealth; they are pursuing meaning through love and love through meaning.
Most of the time, the person you have to become to make money is a high-anxiety, high-stress, hard-working, competitive person. When you have done that for twenty, thirty, forty, fifty years, and you suddenly make money, you can’t turn it off. You’ve trained yourself to be a high-anxiety person. Then, you have to learn how to be happy.
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