Knowledge is Powerful: Why and What it Means

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Knowledge is powerful because we are in a knowledge economy. The world used to value physical and brute strength. Now, the world places more emphasis on brain over brawn. The more you accurately know how the world works, the better your life becomes.

We can’t force anyone to give things to us, these days. We can convince people to give things to us. The best people at knowing how to grease the wheels are the ones who convince others to give things to them. They don’t ask for us to give anything, we voluntarily and willingly give to them.

That’s why knowledge is powerful. Only the ones who are in the know know how to do something like that. We don’t win negotiations by forcing the other person to concede. We win negotiations by knowing how to get the other person to concede. People have specific words and language that convinces them giving is the right way to go.

A company gave me a job offer in July 2021. I was shocked at the salary they quoted me. It was $85-95k base plus a $15 – $20k bonus. I was shocked. The job should have had a minimum of $110k base plus a $30k bonus. That was at a minimum because that was the quoted salary 3 years ago.

This is why knowledge is powerful. I already knew they were underpaying their people and so I easily rejected the job. 11 months later and they’re still looking for people. I hope they realize just how low their pay is and increase that pay. The world we are in is dependent on you being in the know.

What is Powerful Knowledge?

Powerful knowledge is any bit of information that gives you an edge over someone else. These days, people use knowledge as a way to earn more money, charge more money, and have an edge over somebody else. Dentists get to charge more money because they know how to take care of your teeth.

Doctors get to charge more money because they know how to treat your injuries and pain. We are in a specialized economy world where people who specialize get the rewards. Powerful knowledge isn’t just limited to one subset of knowledge. It applies to everywhere where knowledge is valuable.

Even general things like car knowledge comes handy when it comes time to negotiate for a car. Or when it comes time to get your car fixed. Whatever it is, knowledge is what matters these days. Companies hire employees based on what they know and what their knowledge is.

Not based on what they don’t know or not know how to complete a task. Knowledge is powerful. The more things you know that is sellable information, the better off you are. Knowledge commands obedience because how can the ignorant question the one who knows?

You’re not stating opinions, you’re stating facts that actually people care about. If you don’t know anything, then people can slide anything they want to slide past you. You have no idea whether they’re trying to pull one over you or not, either, because of a lack of knowledge.

Why Knowledge is Powerful

One of the reasons knowledge is powerful is because you can SMASH that social share button and share this knowledge with others!

In seriousness, there are many reasons why knowledge is powerful. Some of them are:

1) Knowledge Gives You an Edge

Knowledge is powerful because information is the equalizer.
Winners are built in libraries.

The one who is in the know is who knows how to grease the wheels. Think of someone at your company who is great at schmoozing higher ups. Or the one who actually knows private information about people that not many knows about. The one who knows how much salary the next rung up the ladder pays.

Or the one who knows who is up for a promotion and who isn’t. It’s these people who know how to grease the wheels in order to get ahead over someone else who doesn’t know. Knowledge is powerful because it gives you an edge over someone else who just doesn’t know valuable information.

These are the people who are going to get ahead. Who knows how to play office politics. Who knows how to push ahead while everyone else is wondering how they got ahead. Getting ahead is about knowing how to play the game. Whether we like to play the game or not.

2) Knowledge Stays With You

Once you understand the knowledge and can conceptualize it well, then no one can take it away from you. It stays with you. You don’t forget interesting and valuable pieces of information. You never forget the first time you got a company to offer you 25% above the original offer.

For the future, you remember how you did it so you can apply it to the next negotiation. Knowledge is powerful because once you have a great grasp and understanding of a concept, you don’t forget it. Also, this means that knowledge is cumulative. It stays with you and it compounds over time.

So the next time you are in the similar or even the same predicament, it doesn’t take you a long time to figure out a solution. You can easily apply the same learnings to this time around. And you know it’s going to be the right one. It’s just like muscle memory. You just don’t forget.

3) Wars are Now Fought Through Knowledge

Knowledge is powerful because that's how you win wars.
Less need for fighter jets to win wars.

It’s less likely that wars are now fought with weapons. Yes, it does happen, like with the Russian invasion of Ukraine. However, that’s not the norm. Those events happen very rarely. Aside from those very highly rare macro events, it’s not socially acceptable these days to use force to get someone to do something.

With the invention of social media, we know when someone is trying to unjustly take something that’s not theirs. These days, wars are fought with knowledge. Knowledge is powerful because that’s how you win. You win through language, communication, and knowing how to convince someone to do something that you want.

It’s become much more of a level playing field where genetics don’t play as much of an impact as it does with brawn. There’s always a way for people in order to move up and these days, it’s done through language, words, effective communication, and presentation skills.

4) It Opens Your Eyes to the World

Knowledge is powerful because it gives you a better sense of how the state of the affairs across the world actually is. You’re not making a guess, you’re not even making an educated guess. You’re making an informed guess and opinion on how the state of affairs is going across the world.

When we were little, our parents sheltered us from all of the injustices in the world that were happening. We just didn’t know any better and we didn’t know anything. However, as we get to see how the world is, we get to form our own opinions on what we want out of life and make subsequent decisions.

Knowledge is powerful because you can’t even form an opinion without a basis to forming that opinion. I figured out just how little I knew when I was in college. Then I figured out just how little I knew when I graduated college. And the list just goes on and on to no end.

5) Jobs are Getting More Specialized

People love to use code words to keep people in the dark. What will you be willing to pay more for? “You take the stream of cash flows, discount it using a discount rate, add it all up, and that gives you the present value of the company”. Or, “you take these numbers, divide it by this number, and add it up”.

The former, of course! Jobs use code words and specialized language so it stops their customers from actually understanding what they’re doing. As long as they sound smart and confident in what they’re talking about, then they are more than happy to do so so that they can charge their customers more.

Knowledge is powerful because this is the norm. Companies are becoming much more complex not just in the work they are doing but also in the language that they speak. You don’t want to be taken advantage of by not being in the know. Actually understand what is happening so no one can swindle you.

6) We are in the Information Age

Knowledge is powerful because of the information age.
Life is changing.

Make no mistake about it. We are in the information age where knowledge and information is much more valuable above anything else. Knowledge is powerful because that’s the state of the world right now. Because technology is so prevalent in the world, it’s only natural to be in the information age.

Technology has made knowledge much more accessible than ever before. There’s no need to go to the library in order to get free information, we can just look it up on the internet. Someone who knows how to do something will always be better off than someone who doesn’t.

This means that you have to be even smarter than the bottom rungs of the ladder because they have the same access to information that you do. It’s not even accurate information that matters, it’s the application of the accurate information that matters.

7) It Instills Trust in Others

The more you know and know how to communicate that information, the more others think you know what you’re doing. When others think you know what you’re doing is when others trust you. We don’t want leaders who think they know what they’re doing, we want leaders who know what they’re doing.

Knowledge is powerful because that’s how you convince someone else to vote for you and to give you the reins. Even if it isn’t for a leadership position, even if it’s just for a simple promotion that your boss is considering. No boss wants to give the reins to people who don’t deserve it.

Bosses want to give the chance to people who’ve proven themselves. Who gets along with coworkers and also has the technical know-how in order to fit in well with the team. In my prior job, the more that I understood how things worked, the more my boss trusted me in order to finish out projects.

8) People Pay Money for Knowledge

You don’t pay money to the grocery store or to the gas station for the product. You’re paying money for the knowledge it takes for you to receive the end product. The logistics, supply chain, transportation, and the like. That takes real knowledge on how to do to serve the end customer.

Knowledge is powerful because you’re paying for that knowledge. And at the same time, you’re selling your knowledge to other people. Your employer doesn’t pay you so that they can teach you how the way things work. Your employer pays you for your knowledge that you learned through schooling or prior jobs.

Data has become the new oil. It’s become very valuable for people to know how things work, how things are done, and how things are done the right way. A $10 book is very useful these days. Don’t discount the power of knowledge because people are doing quite well from that.

9) It’s How you Win the Confidence Game

The confidence person doesn’t ask to give me your coat. You voluntarily give away your coat without thinking twice. Knowledge is powerful because that’s how you win the confidence game. You don’t beg or request for something, people just give things to you without you asking for it.

It’s what smooth talkers do. The ones who know how to grease the wheels in order to get what they want. Or the ones who know how to navigate through the politics of people. No matter how much we dislike it, we’re going to have to play the politics of people in this world.

Everything is controlled by people, so to navigate the game and the system requires it. Be so good that bosses want to promote you. Be so good that bosses want to give you a raise. Or that companies want to hire you. Getting someone to do something good for you is never a bad skill to have.

Knowledge is Powerful, Make Sure to Apply It

Knowledge is powerful. However, Knowledge is nothing without application. If you learn something once but never actually use it out in the real world, it’s meaningless. There are many books that I read in the years after college. Many of those books helped me learn many concepts I didn’t know before.

Someone out there spent years of their life synthesizing valuable information for you to learn. All for $10. You can even get it for free at the local library if push came to shove. That’s powerful and a sign that the world is becoming a better place for everyone.

Knowledge equalizes the game, to a certain extent. Maybe you can’t afford to go to college so you spend your years learning how to code on your own. Yes, it will be even harder to get your name noticed after you craft a resume to send to a company versus a college degree holder.

However, once you’re in the interview room, it’s fair game from then on. You’re on the same and equal footing as someone who spent tens of thousands of dollars going to college. Then it’s on you to prove to the hiring manager that you’re just as valuable as the person with a college degree. College is a waste of time and money.

Knowledge is powerful because it can greatly level the playing field now, to a certain extent. Many people are becoming entrepreneurs right out of high school for a business they built during when they were in high school. There’s never been a better time to take advantage.

Why Knowledge is Powerful: Shortlist

  • Knowledge gives you an edge
  • Knowledge stays with you
  • Wars are now fought through knowledge
  • It opens your eyes to the world
  • Jobs are getting more specialized
  • We are in the information age
  • It instills trust in others
  • People pay money for knowledge
  • Knowledge is how you win the confidence game

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