Part 4 In Our Series On Public Companies
If you go to a business school today you will see a large percentage of students dreaming about a job on Wall Street where they’ll get a chance to make a huge amount of money. The problem with this is Wall Street doesn’t really make or do anything that benefits most who live in this country.
Wall Street’s business is being an intermediary in financial transactions. They facilitate financial transactions and for this service they take a percentage out of each part of the facilitated transaction. These small pieces add up to a huge amount of money and an equally large brain drain in our country.
Because the money that can be earned is so large, our best and brightest want to work there. If instead, we didn’t have intermediaries making huge amounts of money many of our best and brightest would dream about building companies that make or do something useful for society.
We now are not only having a brain drain from our best business schools, but are also seeing top engineers, physicists and engineers going to Wall Street where they make complicated financial instruments. Some of these complicated instruments are the same ones that caused our economy to come crashing down.
We have made it very attractive for our smartest and one could argue our most capable young people to move into a career that doesn’t really create jobs or wealth for others. This not only is sad, I believe it’s also a dangerous activity. I only hope that somehow we can change this trend and find a way for our best and brightest to go back to doing what they’ve always done, create value for themselves and others.
What’s your thought on the brain drain that has been running as fast as they can towards Wall Street?
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