Jack,

Great article.

It is disappointing that so many of the brightest use their skills acquired in an engineering or law degree to perform hocus pocus on pieces of paper, vs building infrastructure or providing legal aid. Regrettably, I too am guilty of this.

I’d also add power - the whole “Masters of the Universe” thing. A lot of financiers get off on the fact that they can have enormous leverage over a country’s future - just think of Soros shorting the pound or a sovereign debt investor bringing a 3rd world country to their knees.

Let’s not forget that working in the public service is also a big turn-off for these alpha types who want to get things done quickly and with impact.

DFAT is a case in point - it’s arguably the most prestigious government department work for. But as a graduate your chances of getting a posting to one of the world’s hotspots (from what I hear), is getting increasingly rare. You’re more likely to end up in New Zealand negotiating agreements on apple diseases, than being sent to say Washington or Beijing.

Yes we’re likely to see greater regulation of financial markets following the current mess. This may have a short-term effect on people going into finance. But in the end markets will recover and people, institutions and countries will still need to raise money, still need to borrow money and still need to spend money. The reality is bankers will continue to work out new ways to exploit and profit from changes in regulation.

Though not totally related (and worthy of its own post), I reckon increasing politician’s pay would be a useful step. While it would never happen because it’d be deeply unpopular, a higher quality of candidate would be attracted to political office and lessen the impact of the bland, uninspiring political hacks that dominate now.

“The best of all lack conviction
While the worst Are full of passionate intensity”

While the attempting to bridge the gulf between remuneration rates in ‘power’ professions and social-structure positions is an eminently practical way of dealing with this problem, a far more effective method would be to introduce or resurrect something like the persona non grata status of the merchant classes in classical Japan.

Maligned for feeding off the work of the masses and the wealth of the elite, money lenders and their like were forced to wear dowdy outer wear lest they flaunt their wealth. More of that I say! No more of your Zegna suits and Malanos.