No Guarantees

I was struck by this Megan McArdle post, of which I will go ahead a quote a large chunk:

Guess what, honey? You’re not entitled. You can do everything right, and the universe doesn’t owe you anything. Neither do your fellow taxpayers. If there is any way to save the banking system without paying you $2 million a year, I will do it, not because I hate you and want to rob you, but because I don’t want to pay more than I have to. You may have come across this concept in business school. At Chicago, we called it “a market”.

The real problem with investment bankers goes deeper, and is the problem of the entire upper middle class: we have come to believe that complying with the rules produces excellent results as by some natural law. In school, if you do your work, teacher gives you an A. It comes to seem like a sort of a natural law: if you have a good education and work hard, the universe is supposed to reward you. After school, the upper middle class gravitates towards careers with very well defined advancement hierarchies: medicine, law, finance, consulting, where this subtle belief is constantly reinforced. Continue Reading