Can I register my disapproval of a phrase that crops up in business stories more and more? It’s “creating wealth,” as a description of what entrepreneurs (and business people generally) do. As in this story from The Guardian: “Creating Wealth: how artists can become inventive entrepreneurs.” Or an interview with New Orleans mayor Mitch Landrieu, headlined, “Is specialized job training the key to creating wealth in New Orleans?” Or a recent story in The New York Times: “But if Mr. Modi is serious about creating wealth from India’s waste….”
There are some points in favor of the phrase: it emphasizes the creativity of capitalism, and it’s usefully generic, on the level of phrases like “building the economy.”
What I disapprove of, however, is its emphasis on wealth as the end product of business, instead of useful products and services. Granted that some people in business don’t care what they do so long as it makes them rich. But that is typically an attitude of people in non-creative service industries, like much of finance. It is what rentiers and speculators do. It makes some people rich by making other people poor.
If you want to be an entrepreneur, I doubt it serves you well to focus any large share of your attention on getting rich. You want to focus on a specific product or service that will make you rich by providing a concrete good. This is the business of entrepreneurs: creating Uber, creating the iPod, creating Amazon.
To focus on “creating wealth” is the King Midas mistake. You think you get rich by magically turning things into gold, but you discover that if the whole world is gold, you become desperately poor. Focus on useful products and services, and you may become rich; focus on becoming rich, and we may (societally) become impoverished.
So artists who want to get rich should focus on becoming better artists better serving art lovers; New Orleans should focus on streamlining business formation and providing good education and creating safer streets; Mr. Modi should focus on effective recycling policies. That’s the creativity of capitalism; wealth is a byproduct.