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Doncarlo
How Money Works
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Comments by "Doncarlo" (@doujinflip) on "The Rise of CEOs... That Don't Show Up To Work." video.
3:38 According to the Smiling Curve model, R&D (i.e. creating IP) in the beginning and Sales & Services (including marketing) at the end provide more value-added than the price-sensitive easily-substituted Manufacturing in the middle of the production chain. This is why developed nations manage to stay rich despite offshoring its factories and intensively automating the ones that do come back (i.e. much lower impact on employment numbers), while those who fail to create unique ideas and valuable branding fall into the middle-income trap where they're desperate to keep their youth motivated and employed. At a more micro level, the value-added of selling a brand explains how CEOs manage to demand so much compensation per calories burnt. Especially those CEOs who simply gained control of (as opposed to actually building from the paper idea up) existing companies, such as Elon's buyout of Tesla, SpaceX, and Twitter. Guys (usually) like these are the ultimate influencer every schoolkid nowadays dreams to be.
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