Fame and Fortune

On Fame

In the age of the internet, nothing needs to be remembered. Any formula, fact, address, or phone number is just a search engine away, and people expect the information instantly. This has spilled into other areas of life - a 2 minute late train is a disaster, McDonalds burgers that aren't cooked before you enter the store is a hassle. What chance does my generation have of every wanting to be come farmers when it takes ten years for fruit trees to flower?!

This concept of Life Instantaneity exists in other places - for example the perception of success. The advent of certain reality tv shows, such as Big Brother or Idol has ingrained a perception that success, fame, and instantaneity is intertwined. Fame and success in the modern perception comes from being picked to star on a show - working hard doesn't enter the equation, and would merely direct energies away from becoming the instant pop star.

Too often this idea of instant success (and concurrently, instant awareness of failure) would prevent people from really working hard to achieve their dreams - the presence of a barrier makes the possibility seem insurmountable, regardless of the nature of the barrier. Randy Pausch reflected on this in his "Last Lecture", given a few months before he died (18/9/2007 at Carnegie Mellon University)

"The brick walls are there for a reason. The brick walls are not there to keep us out. The brick walls are there to give us a chance to show how badly we want something. because the brick walls are there to stop the people who don't want it badly enough. They're there to stop the other people"

On Fortune

The concept of passive income enters many a discussion and seminar on business and entrepreneurship. The idea is creating an asset - not a negative geared or even cashflow neutral asset such as a house may be - but an asset that actively creates wealth for you. An example might be a royalty on a patent, or a business product that sells consistently with little marketing input or product updating. Or of course, the real killer, money lent by banks generating endless income.

We use money every day but rarely think of its origins - the notes and paper money (plastic in Australia) we take for granted aren't actually more than plastic and paper, but are symbolic of a "promise". In its original incarnation, money was a promise for goods - wheat, for example, in Ancient Egyptian systems, or gold in Classical Time Europe. A promise and a debt are basically the same thing - the guarantee of returning something of value. The promise of repayment plus interest is age old, but its perception today is very different.

"One thing to realise about our fractional reserve banking system is that, like  a child's game of musical chairs, as long as the music is playing, there are no losers.

- Andrew Gause, Monetary Historian

Nearly every religion at some stage saw lending money for interest, or usury, as immoral. It was condemned to make money off ones money without contributing to society. However today it happens all the time - think Maquarie Bank, Hedge Funds, Aussie Home Loans - all businesses that make money of money. Today the perception is that there is risk in lending money so interest is justified, but in doing so, what have bankers really done to contribute to society? They can amass huge amounts of wealth without building a single bridge, education or healing a single person, or improving anyone's life. It may be acceptable, but is it still Moral?

So the big philosophical question for my entrepreneurial years is this: is it moral to develop a passive income and create wealth without further work?

For now, my answer is: Only if a passive income allows you to contribute to society, environment etc . The business model of core business being separate from income (think Google - free email and searching doesn't generate income, but it's advertising does) is established, so perhaps it is reasonable for a persons income to be separate from their core activities. For me, the dream is a passive income so that the rest of life can be dedicated to family, friends and development. 

What do you think? I would love your comments.