Why Luck BEATS Hard Work

Summary

This video explores the influence of luck versus merit on success, using Bill Gates as a case study. Despite his genius and hard work, Gates' wealth is partly attributed to fortunate circumstances like his birthplace and early access to computers. The video also delves into the 'relative age effect' and socioeconomic impacts on success, challenging the meritocracy myth and suggesting that luck plays a significant role in life outcomes.

Takeaways

• 💰 In 2017, Oxfam reported that the eight richest men on Earth had the same wealth as the poorest half of the world's population combined, highlighting wealth inequality.
• 🤔 The script challenges the notion of a meritocracy, suggesting that while talent is evenly distributed, wealth is not, and questions the role of luck in success.
• 💡 Bill Gates' success is attributed not only to his intelligence and hard work but also to significant luck, including his birth circumstances and early access to a computer.
• 🏫 Gates' education at Lakeside School, which provided unique access to a mainframe computer, was a pivotal moment that contributed to his future success.
• 🧠 The script emphasizes that while Gates has an exceptional IQ, there are millions of people with similar intelligence who are not as successful due to lack of opportunity.
• 🎲 The role of luck in life outcomes is compared to a game of chance, suggesting that random events can have a significant impact on one's path.
• 🎓 The 'Relative Age Effect' is highlighted as a factor that influences success in various fields, such as sports, due to the advantages of being the oldest in a cohort.
• ⚽ The script provides the example of football, showing that many top England players were born in September, benefiting from the relative age effect.
• 📚 Socioeconomic status is a major determinant of success, with SAT scores in the U.S. being correlated with family income, affecting educational opportunities.
• 🧬 Intelligence and talent are largely inherited and out of an individual's control, suggesting that success due to innate talent is also a form of luck.
• 🎟 The video concludes by likening life to a lottery, where some start with more 'tickets' (advantages) than others, but hard work and skills can increase one's chances of success.

Q & A

What did Oxfam report in 2017 about the wealth distribution on Earth?

In 2017, Oxfam reported that the eight richest men on Earth owned the same wealth as the poorest half of the world's population combined.

What is the role of Athletic Greens in the video script?

Athletic Greens is the sponsor of the video, promoting a product that simplifies health routines with a daily serving of essential nutrients, vitamins, and minerals.

What are the benefits mentioned in the script for using Athletic Greens' AG-1 product?

The script mentions improved focus, increased productivity, and good taste as benefits of using AG-1 by Athletic Greens.

What personal wealth did Bill Gates have in 2017 according to the script?

In 2017, Bill Gates had a personal wealth of just shy of 90 billion dollars.

How does the script relate Bill Gates' success to luck?

The script suggests that while Bill Gates is extremely talented and hardworking, his success was also significantly influenced by luck, including being born in a prosperous country, attending an elite school with early computer access, and founding Microsoft with Paul Allen.

What is the estimated IQ of Bill Gates mentioned in the script?

The script estimates Bill Gates' IQ to be around 160, which is considered to be in the genius territory.

What is the 'relative age effect' as discussed in the script?

The 'relative age effect' is a phenomenon where success in various fields is influenced by the month of the year one is born. Children born just after the cut-off date for activities like school or sports teams have an advantage over those born just before the cut-off date.

How does the script illustrate the impact of the relative age effect in football?

The script points out that of the 30 most capped England football players of all time, six were born in September, which is significantly more than expected if birth month had no impact on success.

What correlation does the script mention between SAT scores and family income in the U.S.?

The script mentions that SAT scores are heavily correlated with family income, with average scores being lowest among families earning under $20,000 a year and highest among families making over $200,000 a year.

How does the script define 'success' in the context of the discussion on talent and luck?

The script suggests that success is not solely about wealth and can mean different things to different people. It also implies that success is influenced by a combination of innate talent and luck, both of which are largely outside of an individual's control.