The bobos project: intellectual life
After the chapter about work in the book Bobos in Paradise by David Brooks, there is a chapter about the “intellectual life.”
Here’s an excerpt:
In most intellectual organizations, the hard work of researching, thinking, and writing is done by the people who are too young to get out of it. A two-tier system develops. There are paper people—the young intellectual climbers who read and write things—and there are front people—the already renowned intellectuals, government officials, magazine editors, university presidents, foundation heads, and politicians whose primary job is to appear in places delivering the research finding, speeches, and talking points the paper people have gathered for them. The front people go to meetings, do Nightline, speak at fundraisers, host panel discussions, and give interviews on NPR. They get credit for everything.
It seems to me that there’s value transference going on in the intellectual world just as there is in the world of business. At the typical corporation, there are a large number of employees doing grunt work in cubicles earning modest salaries. A portion of the value that they create is transferred up to the people in the C-suite who earn massive amounts of money.
The only thing that’s different in the intellectual world is the currency, which is recognition instead of dollars. There are people at the bottom doing the real work of researching and writing, the value creation, while those at the top enjoy the glory of their efforts even though they don’t do any real work. Although people at the top of the intellectual world also make decent money. For example, New York Times reporter Jodi Kantor was paid one million dollars for her book about the Obamas. (Perhaps as an actual working reporter, Jodi has less prestige than a more theoretical type of intellectual.)
Brooks didn’t have a clue about what it’s actually like to work in corporate America, but I assume what he writes about the intellectual life is accurate because that’s the world he lives in, so he should know.
Brooks also accurately explains that in the bobo world, a person’s status is a combination of how much money he makes plus how much self-actualizing he has accomplished. Some of the blog commenters think that Heather Eisenlord dropped in status when she left her job as an associate at Skadden Arps (which probably paid in the $200s) for a job as a director of the human rights program at the International Senior Lawyers Project which might pay as little as $65,000. But actually, in her mind, she might have moved up in the world because she went from working for money to working for self-actualization. In fact, it’s very difficult to get a job as the director of an international human rights program. Only the prestige of working at Skadden Arps and graduating from a Top 14 law school put her in the running for such a lofty position.
David Brooks ends the chapter with a discussion of “status-income disequilibrium.” According to Brooks, people who have high status intellectual jobs go home to shabby apartments that are all they can afford on a hundred-thousand-dollar salary and they feel great psychic pain that they have so much less than the top people in business. If you want to find out more about this theory, you don’t have to buy the book because he wrote about status-income disequilibrium a few years earlier in the Weekly Standard, and the article is on the web. The book just contains a slightly edited version of the article.
My complaint about this chapter is that it is mostly tangential to telling me about bobos, which I thought was the main purpose of the book based on the title. This is why Paul Fussell’s book on class is a much better read. All Fussell writes about is class.

i have a love-hate relationship with the concept of value transference. it seems a fairly brilliant way to describe the “unfair” (or at least disproportionate) compensation earned by senior executives, which is something that smart people feel acutely when they are not the boss. but it is also naive. if the compensation of senior executives was truly unjust then the ultimate owners of capital would throw them out and save the money, yet, highly paid senior managers exist, including in small private companies with one owner. in any organization, there is a need for someone to set the direction of the company (or division) and make decisions, particularly on items that relate to the future direction. someone who is good at that role can be immensely valuable. someone who is bad at that role can be similarly destructive. and if value transference is even a real problem, then i’m not sure there’s a solution. one idea would be very powerful employee unions, but then you look at General Motors, which has strong unions but also has major value transference and is a major social/political problem to boot. another solution is communism, which has been tried and failed in every instance. the only “solution” is a change in social values, similar to japan, where it is unseemly for leaders to be paid excess compensation. would love to see the lion’s suggestions on that.
ralph
January 10, 2013 at 9:32 pm
now that i think more about it – value transference is arguably just another name for the standard economic concept of “rent seeking”. value transference is a negative name given to senior executives to describe the aspect of their job that is a form of rent seeking, while denying that there might be an aspect of the job that adds value.
a confounding example would be – public sector unions engage in widespread value transference and there’s no real “management” involved per se. public employees have a system whereby employees receive steadily increasing rewards in all roles, and often make more than private sector counterparts. (#1 example is secretaries). this includes retirement games whereby their last three years of work, including overtime, set a pension amount which is then paid out for life. as a private sector worker myself, in a shaky economy, with a 401k which i am expected to manage on my own, i have to admit the idea of a pension of 75k+ until i die sounds pretty good. in some cases this is in the low six figures. “senior” union members get paid more, everyone is in on the racket.
public sector unions transfer value from the taxpayer to themselves. there is only one government and when there’s enough people that work for it, they can influence elections, shape policy, and vote themselves more benefits. the average guy transfers value from other average guys. and arguably, many of these workers are in rank-and-file positions that don’t *ever* provide the kind of impact /value for others that a good executive in the private sector can do. like the secretary to the undersecretary for the department of public affairs in housing and urban development.
so what do we do?
ralph
January 10, 2013 at 10:02 pm
Brooks’s comment is silly. Value transference in the intellectual world is really only in the natural sciences where PhD candidates are paid a little over min wage and in some disciplines like synthetic organic chemistry are expected to work at least 60 h per week in the lab sometmes for profs who only show up for their one class a year or to criticise. They’ve got the rep and think their job is just to write grant proposals and intimidate their lab slaves.
Nicolai Yezhov
January 10, 2013 at 11:18 pm
“Value transference in the intellectual world is really only in the natural sciences” — No way. There is massive, massive exploitation of grad students and adjuncts in the liberal arts.
Tarl
January 11, 2013 at 10:35 am
But there is nothing to exploit, because neither professors nor grad students produce anything. Both are exploiting UG students and tax payers.
Nicolai Yezhov
January 11, 2013 at 8:45 pm
That’s the whole point. Professors don’t produce any wealth; they transfer it from grad students and undergrads and taxpayers to themselves.
Tarl
January 11, 2013 at 9:57 pm
I guess you didn’t know Tarl that grad students outside professional subjects pay no tuition. I forgive you.
Nicolai Yezhov
January 12, 2013 at 11:23 pm
That’s not “the whole point”. Grad students don’t produce anything either, if they’re not in technical/natural science disciplines.
Nicolai Yezhov
January 12, 2013 at 2:46 am
Of course it is the whole point. Grad students and undergrads don’t have to produce anything in order to transfer wealth and value to professors. The value can originate in the taxpayers or the parents of the student, who create value in order to support their kid in college, or the value can originate in the future (the student takes out a loan and pays it off someday when they do produce value themselves).
It is somewhat “better” for society if the value transference occurs in the natural sciences, because the grad students and the profs may produce something of value. This does not, however, mean that value transference does not occur in the liberal arts. It just means that the value is transferred to the professor and then destroyed. If you are in a value-creating industry and your kids are liberal arts majors, then the value you create is thrown down the toilet every time you pay their tuition and expenses.
Tarl
January 12, 2013 at 11:53 am
“This is why Paul Fussell’s book on class is a much better read. All Fussell writes about is class”.
Fussell’s book is top notch when it comes to defining class. He describes it as what it is, unlike Brooks who tells a gripe story about the have nots.
“According to Brooks, people who have high status intellectual jobs go home to shabby apartments that are all they can afford on a hundred-thousand-dollar salary and they feel great psychic pain that they have so much less than the top people in business”.
I knew one guy who made several millions on Wall St, and is now happily retired as a college professor. He’s a rare breed, but if the average person wants an intellectual job, they ought to follow his path.
Just Speculating
January 10, 2013 at 11:23 pm
“…that are all they can afford on a hundred-thousand-dollar salary.” in Manhattan or SF or London or Tokyo. Where else? Out of touch and he’s from Canada and went to Chicago.
The disequilibrium is why they’re all left of center. But it’s a good reason. As Fran Liebowitz said, “Whoever thinks the richest are the smartest has either never met a rich person or never met a smart person.” Or, simply doesn’t know the facts on IQ vs earned income.
Nicolai Yezhov
January 10, 2013 at 11:31 pm
only thing that’s different in the intellectual world is the currency, which is recognition instead of dollars.
Value Transference, as you define it, follows a Gaussian distribution with pure value creation and pure value transference on opposite ends of eachother.
The intellectual world is among the most extreme forms of value transference because all of the value transference problems you complain about in the corporate sector exists in the most pure form in Brooks’ world of the Cathedral. And value creation in the intellectual world (outside of the hard sciences) is at it’s most minimal.
The Cathedral has these value transference features:
* Promotions to elite intellectual world jobs rely heavily on connections rather than unique insight. Everything Paul Krugman, Tom Friedman, and Maureen Dowd writes is identical to what’s written at DailyKos, Salon, Firedoglake and other liberal partisan outlets. But the elite New York Times editorialists have far better income and lifestyles than the often penniless leftist journalist majors who write for Kos because the elite journalists had better networking opportunities.
* The Cathedral/intellectual world is obsessed with elite college credentials over any tangible ability more so than even BIGLAW or BIG Consulting.
* Results are irrelevant to working your way to the higher echelons of the Cathedral. In fact, failure is GOOD in the Cathedral because if your ideas fail (e.g., non-white immigration, the New Deal, Carbon emission caps, the Great Society, Obamacare, etc) your failure creates an excuse for bureaucrats to pour MORE money into your failed project in order to fix something the liberal either caused (Global Warming Hoax) or made worse (non-white immigration on top of an already cognitively unassimaleable, but possibly manageable, black population). And because failed liberal policy makers, by virtue of their failure, created more jobs for bureaucrats, these failed policy makers develop loyal apparatchiks because the newly hired bureaucrats are grateful to the policy makers whose failure created their jobs in the first place.
* The Cathedral/intellectual world puts up arbitrary barriers to competition barriers entry from private sector competition. Hence teacher union opposition to charter schools, colleges opposing automating their classes via MOOCs, injecting more competition into the overly regulated health care system.
* There’s is almost no value creation in the Cathedral other military and infrastructure spending. And what little non-military and non-infrastructure value the Cathedral creates costs far too much and provides much less benefit than what the private sector could generate.
The Undiscovered Jew
January 11, 2013 at 12:31 am
On the far end of the value creation distribution is the IT world because the IT sector rewards ability more so than any other private sector field. But even here, there is value transference.
The only types of jobs more purely value creation than IT would be the world of theoretical science and mathematics. But only a very, very, small percentage of the population possesses the unique IQ and cognitive features needed to make major contributions tor these fields.
The Undiscovered Jew
January 11, 2013 at 12:38 am
The only way to make real money in IT is to get promoted out of actual computer programming. I don’t see how that rewards value creation ability. And the most brilliant programmers aren’t necessarily the ones who get promoted out of programming.
Lion of the Blogosphere
January 11, 2013 at 7:28 am
The real money makers in IT aren’t IT guys, but managers and upper management who tell them what to do.
Just Speculating
January 11, 2013 at 9:45 am
The only way to make real money in IT is to get promoted out of actual computer programming.
The real money makers in IT aren’t IT guys, but managers and upper management
You’re both sort of missing my point that almost all industries are a mix of value transference and value creation with some industries being more skewed in one direction than another.
In the case of IT, of course the most money is in management. In terms of salary and social status if you are Steve Jobs, Tim Cook, Jony Ive, or Edy Cue than one of their Indian iOS programmer.
But the IT world is still treats their value creators better than the intellectual world. Even less than mediocre computer programmers are usually guaranteed a salary at least close to 6 digits, which is a good enough income for most parts of the country. But the non-elite SWPLs are doomed to work in crap jobs like Teach for America or being a public university librarian or Teacher’s Assistant where they are stuck around unassimilable racial minorities, shuffling papers, and other non-profit work where they get paid peanuts. Only a very few elite SWPLs get to enjoy good pay at non-profit organizations. Most of the Kos writers are poor liberal arts majors from no-name schools and hate the elite liberal editorialists like Krugman for being more successful financially and socially than them. The extreme stratification of career advancement opportunities in the intellectual world divorced from any real world ability or results is what makes them purer value transference fields than IT.
The Undiscovered Jew
January 11, 2013 at 1:27 pm
Value transference can only exists if there is value to transfer. Work in the world of ideas has no value. Does a mob boss transfer the value created by his underlings to himself?
Nicolai Yezhov
January 11, 2013 at 9:02 pm
Very little of theoretical science or mathematics is any more than entertainment for its “producers”. But it is paid for by students and tax payers.
1. The majority of natural science is a boondoggle/value transference scheme.
2. The fraction of the pop capable of doing the work greatly exceeds the fraction for whom there are funds to do it.
3. All of nat sci research could be useful but academic scientists protect their freedom to do useless research and rip off students.
Nicolai Yezhov
January 11, 2013 at 8:58 pm
Very little of theoretical science or mathematics is any more than entertainment for its “producers”.
The Undiscovered Jew
January 12, 2013 at 12:35 pm
Very little of theoretical science or mathematics is any more than entertainment for its “producers”.
Theoretical mathematics is legendary for having its fields go years without any practical application and then suddenly becoming extremely important in every day life and none of modern technology would exist without it. The reason your computer is in front of you is because of theoretical mathematics. It has spill over effects into every scientific field. At MIT the joke is that you can find applied mathematicians in every department except the mathematics department.
The Undiscovered Jew
January 12, 2013 at 12:41 pm
Now that I think about it, advanced mathematics is the purest of all value creation occupations because to make breakthroughs in elite mathematics one must possess very rare cognitive powers. Although great mathematicians often have huge egos, they can only truly make their name by applying their pure mental ability. There are no promotions based on who you are sleeping with, no fame to be had by networking. The glory is reserved for those who generate output with rare skills.
The Undiscovered Jew
January 12, 2013 at 12:52 pm
Now that I think about it, advanced mathematics is the purest of all value creation occupations because to make breakthroughs in elite mathematics one must possess very rare cognitive powers. Although great mathematicians often have huge egos, they can only truly make their name by applying their pure mental ability. There are no promotions based on who you are sleeping with, no fame to be had by networking. The glory is reserved for those who generate output with rare skills.
That’s a specious rationale for arguing advanced mathematics is the “purest of all value creation occupations” since you made nary a reference to how “advanced mathematics” contributed to one’s quality of life or understanding of the “real” universe. It seems like that post merely conflates “pure mental ability” with “value creation”. It might be the “purist form of value creation”, but one can tenably argue that a scientist with a 125 IQ who conducts research on cellular tumor suppressors and how they are dysregulated in oncogenesis creates more value than the people who composed a complex proof of Fermat’s Last Theorem.
Black_Rose
January 12, 2013 at 1:07 pm
you made nary a reference to how “advanced mathematics” contributed to one’s quality of life or understanding of the “real” universe.
Computers wouldn’t exist without high level mathematics. Google “Alan Turing” for details.
The Undiscovered Jew
January 12, 2013 at 1:49 pm
Depends on what one means by high level mathematics. I will use a narrow definition of the type of mathematical reasoning required to solve the problems on the Putnam challenge; upper division undergraduate university mathematics (which would not be considered “high-level” in this context) can be mastered by people IQ 140 people and it would seem that today in order to make a theoretical mathematical contribution one would need an IQ far higher than that.
Tell me how a solution to the Poincare conjecture could advance civilization or have any economic value.
Black_Rose
January 12, 2013 at 4:33 pm
You’ve bougth into a lie told by math profs TUJ.
Nicolai Yezhov
January 12, 2013 at 11:27 pm
I have street cred. I’m a BS in maths and former actuary.
Nicolai Yezhov
January 12, 2013 at 11:29 pm
Depends on what one means by high level mathematics.
High level math would be masters and doctorate level mathematics. Great mathematical talent would be the ability to make major breakthroughs in existing fields of mathematics or create brand new fields.
Tell me how a solution to the Poincare conjecture could advance civilization or have any economic value.
I already told how: With time. I wrote theoretical mathematics is famous for having many of its fields go long stretches of time without having any practical world applications before one day suddenly becoming important in the real world. Algebraic Geometry is an excellent example of this.
The Undiscovered Jew
January 13, 2013 at 9:57 am
One could use the same arguments that fundamental biological research has the same potential payoffs too. I am just questioning whether advanced math is the pinnacle of value creation.
–
I will use the definition of advanced math as the type of math involved on the Putnam problems.
You just have a fetish for test scores.
Black_Rose
January 13, 2013 at 12:24 pm
I am just questioning whether advanced math is the pinnacle of value creation.
Computers wouldn’t exist without the mathematical principles that preceded them. And the mathematicians who came up with the underpinnings of computer devices not given a fraction of 1% of the value they ultimately created.
You just have a fetish for test scores.
Elite math skills can’t be tested because mathematical genius is the ability to CREATE new fields of math or make major contributions to existing fields. Taking a test is not the same thing as the ability to make scientific breakthroughs.
There would have been no way to give a Calculus test Newton when he was five years oldbecause nobody could have designed the test in the first place because Newton hadn’t invented it yet.
The Undiscovered Jew
January 13, 2013 at 7:32 pm
Give it up…
Mathematics is not uniquely value creating; some paper on cancer published in PNAS has more potential to create technological breakthroughs than the proof of the Poincare conjecture. The latter is merely an exhibition of the intellectual power of an exceptional human mind.
Black_Rose
January 13, 2013 at 9:56 pm
I work in corporate strategy consulting and what you are describing is often referred to as “tournament theory”, whereby the winners of the “tournament” get huge payoffs and the rest of the company has to settle for something very close to (and perhaps a bit less than, which is where your idea of “value transference” might make sense) the marginal value of their work outputs. Still, it can’t be much less than the marginal value, otherwise the person will stop participating in the “tournament” and find a new job, so the amount of “value transference” upward from each individual below the “winner” has to be fairly low, at least relative to the lower-level individual’s compensation. But, then again, most people continue to participate in the “tournament” because they think they can ultimately win as they gain the necessary experience.
It’s like that famous scene in “Glengarry Glen Ross” where Alec Baldwin says that first prize in the sales contest is a Cadillac, second prize is a set of steak knives and third prize is you’re fired.
BS Inc.
January 11, 2013 at 10:53 am
The only way where value creation becomes rewarding is franchising. You create a brand or company (value creation), and allow others to make money off it (value transference). The receiver must pay you for the value transference process and a portion of their profits, which is basically a value retransference.
Just Speculating
January 11, 2013 at 12:45 pm
Could you some posts on Taleb’s anti-fragile book? Taleb is a whole lot more creative and interesting than Brooks.
The Undiscovered Jew
January 12, 2013 at 1:52 pm
[...] about the book Bobos in Paradise by David Brooks. The previous post in this series was about bobo intellectual life, and the first post in the series was the [...]
The bobos project: pleasure « Lion of the Blogosphere
January 22, 2013 at 12:01 am
The morons arguing about the “value creation” of mathematics in this thread should really read up on the research about how poor the human mind is at reasoning about the world it lives in. Your mind could be told the most divine truths about the universe and you chimp brain would reject it, because the human mind does not reason correctly AT ALL about a whole host of things and 99% of humanity including many its brightest are unaware of how bad it really is.
The human brain is so bad at reasoning, it’s taken millions of years and all human beings, including those with high IQ are at the ethical and relational level of chimps.
Rationally if your species has taken thousands of years and still can’t solve the most basic ethical problems and on top of that 99% of the members of the species threatens its own long term survival, that means there are serious problems with the underpinning biological hardware.
The overconfidence in one’s biology here is legendary. All of you will be seen by future historians as something closer to chimps and not the intellectual heros you think you all are. The human mind is biased and acculturated to the primitive time and age in which it exists.
supper8888
January 24, 2013 at 4:11 am