I recently came across a text that says that 1000 grams of iron can be worth 15 million $. The text was widely circulated on various social media platforms such as Facebook, TikTok, and even LinkedIn. The text’s central idea revolves around adding value, often used as a metaphor for personal growth. However, the example provided in the text is quite exaggerated. While it is undoubtedly a good thing to add value to something, it’s important to remember that transforming raw materials into high-tech products requires specific knowledge and technology.
Developing and honing your skills over time can significantly contribute to your worth in the job market. It is a common belief that the more skills you possess, the higher your chances of getting hired and the more valuable you become. However, it is essential to note that this notion may only sometimes hold true. While having a diverse skill set is undoubtedly advantageous, it is equally important to have a deep understanding and mastery of the most relevant skills to your desired profession.
Here’s the text:
This is a 1000 gram iron bar. It’s raw value is around $100. If you decide to make horseshoes, its value would increase to $250. If, instead, you decided to make sewing needles, the value would increase to about $70,000. If you decided to produce watch springs and gears, the value would increase to about $6 Million. However still, if you decided to manufacture precision laser components out of it like ones used in lithography, it’ll be worth $15 Million. Your value is not just what you are made of – but above all -in what ways you can make the best of who you are.
The example provided in the context of this discussion may be somewhat exaggerated. While it is true that some highly specialized skills can command exorbitant salaries, it is not always the case that a single skill alone can guarantee a high salary. It is often a combination of factors such as experience, expertise, and demand that determine the value of a particular skill in the job market.
The text commences by asserting that the raw value of a 1000 gram iron bar rests around $100. It is important to note that the value of an object is not determined only by its components but also by external factors such as market demand, craftsmanship, and societal needs. But for the sake of the example, let’s just say (supposedly) that that price is correct; just as a basis, let’s say 100$ is our base price.
The narrative oversimplifies the factors that influence a product’s value, including craftsmanship, market conditions, and competition, by suggesting that crafting horseshoes from the iron bar could propel its value to $250.
Let’s continue to suppose the text is accurate, using technology and specific manufacturing, you can transform 100$ worth of raw materials into 250$ worth of goods, it’s plausible.
Let’s compare the increase of the iron bar to the increase of a person’s skills, yielding similar results. The average annual salary in the USA is 60 000$. The yearly minimum wage is 15 000$. Let’s compare the iron bar to the yearly minimum wage. Our base is 15 000$.
So, if you increase your skills, you can transform your 15 000$ wage 2.5 times. That goes to 37 500$. That is plausible.
The text then claims that transforming into sewing needles could elevate the iron bar’s value to approximately $70,000.
Before assuming an iron bar’s value increase to $70,000 by turning it into sewing needles, it’s important to consider manufacturing costs, market pricing fluctuations, quality, and demand for the finished product.
The example is plain stupid from a manufacturing point of view. Even if we compare the increase to a person’s skills, getting 70 times the annual revenue is unlikely. What amount of people can do that? Make a 70 times increase in their income? 5%? Or less?
Let’s return to our example: take the yearly minimum wage, 15 000. Say a person goes hard investing in their skillset, and by some time, they get a 70 times increase in their annual salary. Doing some quick math equals a bit over 1 million dollars. Sure, let’s say you’re good at what you do; let’s say you’re in the lucky 1-5% and increase your revenue 70 times. It’s highly unlike, but it’s possible, right?
The text implies that crafting watches and precision laser components can lead to values of $6 million and $15 million, respectively. However, it fails to consider the practicalities of the watchmaking industry, such as pricing realities and market fluctuations, highlighting the complexities of determining value and the importance of adopting a transformed mindset. It’s utterly unrealistic.
A 6000 increase in our minimum yearly wage example equals 90 million dollars. How many people are millionaires? How many people can increase their skillset value to perform a 6000 times increase of money? Probably less than 0.1%. About 9800 people in the USA have a net worth of over 100 million dollars. The United States has a population of about 335 million people. That means less than 0.03% of the population has a net worth of 100 million dollars.
Is the example highly unreasonable and unlikely? Yes.
Is it reasonable to a point? Sure, it’s good to a point. Increasing your skillset can help you make 2.5-10-15 times what you earn now, but everything more is improbable.
Besides the captivating scenarios painted in the text, it’s crucial to address a fundamental aspect: enhancing value is not only about transforming material things. The very essence of value creation involves personal growth and development. Just as the composition of an iron bar does not solely determine its worth, our value is not merely shaped by external circumstances.
The narrative emphasizes that developing a growth mindset is critical to unlocking our potential. Embracing change and seeking continuous improvement is crucial in amplifying value. The iron bar is an analogy for our transformation, inviting us to transcend limitations and embrace evolution.
In conclusion, adding value is complex, encompassing external factors and personal growth. As we navigate economic and self-improvement complexities, let’s remember the importance of balance and realism.