The Illusion of Genius Wealth: A Theoretical Framework Challenging Eight Dominant Paradigms on the Relationship Between Intelligence and Economic Prosperity
Abstract
The prevailing belief that intelligence naturally leads to wealth is embedded across economics, sociology, psychology, and cultural narratives. From classical economics to meritocracy, from human capital theory to the wealth mindset, the dominant paradigms assume that intellectual brilliance is intrinsically convertible into economic prosperity. This paper dismantles these assumptions by proposing the Theory of Genius Wealth Illusion, which argues that intellectual value (curiosity capital) and economic value (market capital) belong to fundamentally different ontological domains. By exposing six paradigmatic illusions---classical economics, meritocracy, neoclassical productivism, Marxian reductionism, wealth mindset ideology, and functionalist sociology---we demonstrate that geniuses often remain poor, not due to personal failure, but because their cognitive orientation is exploration-driven rather than market-oriented. Historical and contemporary cases---Tesla versus Edison, Ramanujan versus Hardy, Van Gogh versus the art market---illustrate how civilizations thrive on the sacrifices of undercompensated geniuses while opportunists capture the wealth. The theory introduces key concepts such as time lag paradox, intellectual waste, and asymmetric reward to formalize the structural mismatch between intelligence and economic prosperity.
Executive Summary
This paper develops a novel theoretical framework to explain why geniuses frequently fail to achieve economic wealth. Contrary to six established paradigms, we argue that:
1. Markets are not neutral evaluators of value; they filter only what is commodifiable.
2. Meritocracy is a myth; social structures reward manipulation more than intellectual brilliance.
3. Human capital theory distorts reality; intellectual productivity often generates no economic return.
4. Marxism explains exploitation but underestimates the systemic waste of unused genius.
5. Wealth mindset ideology is ideological propaganda, shifting blame onto individuals while masking structural asymmetries.
6. Functionalist sociology is naive; society often rewards distraction rather than essential intellectual contributions.
We introduce five theoretical propositions: (1) Genius is exploration-driven, (2) exploration reduces wealth probability, (3) markets delay or reject intellectual value, (4) intermediaries capture the wealth, and (5) civilization paradoxically depends on poor geniuses while being ruled by wealthy opportunists. This framework repositions geniuses not as economic failures, but as foundational yet unrecognized architects of civilization.
Preface
The story of human progress is littered with ironies, perhaps none more tragic than the lives of geniuses whose visions shaped our world yet whose pockets remained empty. Consider Nikola Tesla, the restless visionary who dreamed of harnessing cosmic energy, only to die impoverished in a hotel room---while his rival, Thomas Edison, secured patents, investors, and fame. Their clash was not merely about alternating versus direct current; it was a collision of two archetypes: the explorer and the exploiter.
Or take Srinivasa Ramanujan, a self-taught genius from India who conjured infinite series and modular forms with an almost mystical intuition. Supported and legitimized by the Cambridge mathematician G.H. Hardy, Ramanujan's brilliance illuminated number theory, yet his short, impoverished life was lived at the margins of material comfort.
And who could forget Vincent van Gogh? His brush carved emotions into color, painting visions that would later redefine modern art. Yet during his lifetime, he sold almost nothing, surviving on the charity of his brother, while art dealers and collectors would later reap fortunes from his canvases.
Tesla, Ramanujan, Van Gogh: these are not anomalies, but archetypes of a deeper structural paradox. Their stories unveil the illusion we collectively harbor: that genius should, by some natural law, lead to wealth. This paper seeks to unmask that illusion, and in doing so, challenge the intellectual complacency of our age.
