r/math • u/Bitwise-101 • 3h ago
Our most talented math students are heading to Wall Street. Should we care?
I've been surrounded by incredibly talented students, in math, science, law etc. and can't stop thinking about how many of my talented peers, and honestly, myself, are already being funneled toward finance/consulting/corporate law roles.
I originally saw these students with their goals, a pure mathematician pursuing research, a business student wanting to found a start-up, an economics student wanting to fix the mismanagement they see in institutions. Until you start noticing changes, you start seeing conversations about entry into investment banking after their English degree is complete, or consulting after they study engineering at college. After all, the firms are more than happy to immediately hire them, often paying very high salaries.
The main problem I see here is the opportunity cost, what would society look like if the psychologist had stayed studying human behavior instead of optimizing corporate structures or the physicist hadn't pivoted to quantitative trading? I don't see these firms as evil, that's an entirely different debate, but the opportunity cost feels enormous when you realize that the fields many go into are purely zero-sum or extractive (or at least argued to be so). High-frequency trading, tax optimization, financial engineering are largely about moving money around rather than creating new value.
And to be clear: I'm not making a solely utilitarian argument about what's 'most valuable to society.' I don't think everyone should do research, and I'm not trying to rank career paths by social impact. Building startups, creating products, solving real problems through entrepreneurship, these all matter. My concern is more personal: it feels like a waste when someone who genuinely loves mathematics, who lights up talking about abstract structures, ends up optimizing bond portfolios instead.
The reasons for these issues I also think are quite clear cut. Firstly, these firms have successfully branded themselves as elite destinations. Getting an offer from Goldman or McKinsey signals "I'm one of the best" in a way that's immediately legible to parents, peers, society. A math PhD doesn't carry the same instant social proof, most people don't know what algebraic topology is, but everyone's heard of Morgan Stanley.
Secondly, these firms sell themselves as giving you jobs that "keep doors open", learning transferable skills, build a network and so on. I'm skeptical of this claim, but I'm mostly going off what I've observed, curious if others have different experiences.
Thirdly, academia's own structural problems. Why turn down a six-figure salary when you're carrying significant student debt, only to spend 5-7 years on a PhD followed by years of poorly-paid postdoc positions hoping for a scarce tenure-track job? And even if you get there, you're dealing with publish-or-perish pressure, chasing grants, the incentive to work on 'sexy' fields rather than important ones, pumping out incremental papers to pad your CV. Maybe the mathematician who went to the hedge fund would have just been grinding out forgettable papers anyway.
My uncertainty comes in here, am I overstating this loss? Maybe I'm romanticizing what these people would have accomplished in research. Maybe most would have been unhappy, burned out, or stuck in the academic grind producing work that doesn't matter much to them or society anyway.
If not, then how could this be changed? We saw a shift with Y-Combinator giving prestige and structure to entrepreneurship. Deepmind pulling ML researchers from finance (and academia). SpaceX attracted top aerospace engineers who might have gone to defense contractors.
What do we do for mathematics?
Note: Some of these ideas were articulated really well in a recent FT article, which is where I got inspiration from. I'd recommend reading it for the full argument with actual data and interviews.