Check out Naval’s Episode Page & Show Notes
This podcast clip is part of an ongoing conversation between Naval Ravikant and Babak Nivi. Unless otherwise noted, quotes are from Naval. For reference, check out Naval’s famous How to Get Rich tweet storm.
Note from Podcast Notes – Naval is taking us deep. If the below doesn’t quite make sense, check out the Podcast Notes from a few of the past episodes.
- Product (both code-based and media-based) leverage is egalitarian in its outputs
- Compare this to labor and capital leverage – which are much less egalitarian
- In general – The more of a human element there is in providing a service, the less egalitarian it is
- “It’s the nature of code and media output that the same product is accessible to everybody…The best products tend to be at the center, at the sweet spot of the middle class, rather than being targeted to the upper class.”
- For example:
- Things like Netflix and Facebook – everybody can use
- Compare this to Rolex watches or a Lamborghini – using/owning them is much more related to status seeking
- As the forms of leverage have gone from being labor-based and capital-based to being more product/code/media-based – “Most of the goods and services that we consume are becoming much more egalitarian in their consumption”
- Things like food – rich people don’t eat better food
- Technology and media products have amazing scale economies
- “If you care about ethics in wealth creation, it’s better to create your wealth using code and media as leverage. Then those products are equally available to everybody as opposed to trying to create your wealth through labor or capital.”
- “If you’re wealthy today, for large classes of things, you tend spend your money on signaling goods to show other people that you are wealthy, and you try and convert them to status as opposed to actually consuming the goods for their own sake”
These notes were edited by RoRoPa Editing Services