In recent decades, this pyramid has been upended, initially by a very benign force: abundance. After the fall of the Berlin Wall, the West reaped the “Peace Dividend” on defense spending. A decade later, China joined the World Trade Organisation, accelerating globalisation and letting consumers get goods cheaply from anywhere in the world. A decade after that, the shale revolution in the US brought down energy prices globally. Throughout this period, rich nations welcomed millions of economic migrants. With an abundant supply of goods, energy, and workers—and less fretting about defense—society felt its basic needs were met. Inflation was low, allowing interest rates to decline. Money became abundant. This sets off a cycle. When money is loose and society feels its basic needs are met, people start spending on luxuries and fun. Investors notice that and start throwing money at whoever has the grandest dreams for the future. Rising valuations signal to companies at the top of the pyramid to invest more, drawing in yet more resources. This cycle plays out at the broad level of markets and the narrow level of companies. Mark Zuckerberg burns $46 billion building the metaverse—a digital playground that no one else wanted to play in. Bernard Looney announces that BP, an oil and gas company, will cut production of its key products by 40%. Office sub-lessor Adam Neumann gets rich promising to elevate the world’s consciousness (and crashing WeWork). In times of abundance, money goes to wasteful places.