How to Make Wealth - very interesting article

Kintan Brambhatt (http://www.kintya.com/) brought this well-written Paul Graham article to my attention. It talks about how start-ups are most apt to create "wealth". A brief summary:

• Wealth is what people want - car, a peaceful countryside vacation, house, anything. Money is just what they use as a medium of exchange to move wealth around. There is a relatively fixed amount of Money in the world, but limitless wealth to be created. Hence money is not wealth.
  
• To get rich (wealth-wise), you need to be in a situation with two things: measurement (your performance should be measurable) and leverage (your abilities and actions have a big impact). Any job where you feel safe probably is missing one or the other (or both).
• A small company enables Measurability, and cutting-edge technology enables Leverage. Hence start-ups self-select motivated top performers who want to work hard, as their efforts have distinctly visible impact.
  

A couple comments on the article:

• Wealth vs Money: I'm not completely on board with the statement that wealth is on average created, because there is no way to clearly measure it. For example, how do you measure the increase in wealth due to cell phones versus the decrease in wealth due to increasing cases of life-threatening deceases like cancer (which may be attributable to wireless communication)? How about industrialization and its environmental repercussions? Paul addresses it, but not to my satisfaction - immeasurability is not the same as 'different kind of wealth'. I agree though that Money is just one way to measure Wealth. In fact, Money is the measure of the perception of wealth, and it should be respected in just that capacity. So, if something is worth less money, there's a good chance that its implied wealth creation capability is less - but it is by no means the only factor to consider, as several people could have that 'wealth', which reduces its premium but not necessarily its value. A particular cell phone is just as useful regardless of whether it costs $400 or $100, and regardless of whether there are only 100 such models or 10 million. "Premium", IMHO, is not Wealth but simply a manufactured concept to increase the perception of Wealth. As such, its 'value' is fickle and non-dependable unless delicately managed - which makes this 'value' depend on the individuals managing it rather than on the product itself. Case in point: the iPod?
  
• Measurement and leverage: This is very key: "If you're in a job that feels safe, you are not going to get rich, because if there is no danger there is almost certainly no leverage"
• Uninterruptability: The best technical brains *hate* being interrupted, because they are creating 500hp value that interruptions tend to put a handbrake on. This is easy to forget in management, where you are the one interrupting these folks for reports and metrics. You need to keep in mind that when you do that, "inside their heads a giant house of cards is tottering."