Why Smart People Are Flocking to Wall Street Instead of Building the Future (And How That’s Hurting Us)

Imagine a world where the brightest graduates from top universities overwhelmingly choose careers in finance, law, and consulting. This is not a hypothetical scenario but a reality that has been shaping the U.S. economy for decades. Andrew Yang's book, Smart People Should Build Things, lays bare the consequences of this talent concentration and challenges us to rethink how we allocate our most precious resource: human capital.

Yang notes that nearly 60% of top university graduates are funneled into these prestige pathways, drawn by high salaries, clear career trajectories, and cultural prestige. Investment banks, consulting firms, and law offices invest millions annually in recruitment infrastructure—hosting lavish campus events, providing interview coaching, and leveraging strong alumni networks. These efforts create a powerful magnet that pulls talent away from startups and entrepreneurial ventures, which often lack the resources to compete for the same candidates.

This funneling effect has profound implications. Startups, which are critical engines of job creation and innovation, struggle to attract the skilled employees they need. For example, cities like Detroit and New Orleans, which could benefit immensely from entrepreneurial revitalization, face talent shortages because the brightest minds gravitate instead toward New York, Boston, and San Francisco’s financial districts.

Data supports this trend: the financial industry grew from employing 65,000 people in 1975 to nearly 192,000 at its peak in 2008, attracting not only MBAs but also PhDs in science and engineering. Meanwhile, entrepreneurial activity among young adults, particularly those aged 18-24, has declined significantly since 2007. This shift contributes to fewer startups, slower job growth, and a less dynamic economy.

Yang’s analysis underscores that this is a systemic issue reinforced by social pressures and economic incentives. The prestige and stability of professional services careers overshadow the risks and uncertainties of entrepreneurship. Yet, the economy needs builders—people who create companies, jobs, and innovations—to thrive.

Changing this dynamic requires rethinking recruitment, education, and cultural values to elevate entrepreneurship as a viable and respected path. Programs like Venture for America, which place top graduates in startups across emerging cities, provide a blueprint for redirecting talent.

Redirecting smart people to build things is not just an economic imperative; it’s a cultural shift that can revitalize communities and restore the promise of innovation-driven growth.

Understanding these dynamics helps us appreciate why the future of the economy depends on where talent chooses to go and how we can influence that choice.

For more insights, see the full book and analyses on this topic from sources like Blinkist, Amazon, Reddit summaries, and IEEE USA reviews.[[0]](#__0) [[1]](#__1) [[2]](#__2) [[3]](#__3)