All you have to do to be a billionaire is to have an idea. John A. Paulson had an idea, and in 2010 his idea made him $5 billion. His idea was to buy gold. If only you had that idea, you would have made billions too, because the price of gold increased by 30 percent in 2010. You, on other hand, put your money, all $17,000 of it, into Apple stock instead. That stock went up by only 68 percent, and about you, naturally, they did not write in the papers, because your idea was not even half as good: All you made was $11,560.

Now, if you had Paulson’s idea and invested $17 billion in gold instead of $17,000 in Apple, you would have had $5 billion too.

Moshe Adler teaches economics at Columbia University and at the Harry Van Arsdale Center for Labor Studies at Empire State College. He is the author of “Economics for the Rest of Us: Debunking the Science That Makes Life Dismal” (The New Press, 2010).

New York Times:

Mr. Paulson, a hedge fund manager who sprang to fame when the housing market collapsed, personally made about $5 billion in 2010, according to two investors in his company.

How? Mr. Paulson bought gold — lots of it. His firm, Paulson & Company, owns securities that represent the rough equivalent of 96 metric tons of the metal.

Read more

WAIT, BEFORE YOU GO…

If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.

Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.

SUPPORT TRUTHDIG