In Defense of Wealth

One of the biggest barriers to getting leftists to understand economics is their pathological misunderstanding of how wealth works. The average socialist/communist thinks that billionaires are surrounded by piles of filthy lucre that sit there in a lair, inert. Like Smaug the Dragon or Scrooge McDuck, they imagine Jeff Bezos and Elon Musk lying among piles of golden ducats and doubloons, making snow angels with their ill-gotten gains.

I recently suffered this weapons-grade delusion in a debate hosted on the disgraced state broadcaster, the BBC. Invited on to discuss the benefits and drawbacks of the super-rich, I was up against someone introduced as a “comedian and activist.” I shouldn’t have been surprised to be faced with such funny views.

The issue under discussion was Musk’s recent new deal as CEO of Tesla. If he hits an insanely ambitious set of targets, a modern industrialist’s version of the Trials of Hercules, then the tech genius could, in 10 years, become the world’s first trillionaire. To put into perspective how difficult hitting these targets will be, they include selling 1 million humanoid “Optimus” robots. These are far from ready, and none have yet been sold.

He also needs to sell two and a half times more Teslas in the next ten years than have so far sold in the entire existence of the company. Faced against these odds, Hercules would probably prefer the Nemean Lion or the Cretan Bull.

If Musk hits these targets, he will have turned Tesla into far and away the biggest and most profitable company on earth, and generated more value than any other businessman in history. This will include more than $7 trillion for the investors who consented to back this deal. Not to mention tackling climate change, which Tesla will do more...

I've always been pro-capitalism, or pro-free market. The terms tend to carry some baggage but I like the idea of free people freely trading goods for value in an open exchange.

And I've never worried too much about “wage gap inequality”. The secretary makes $40,000 and her boss makes $200,000. Or the teller makes $50,000 and the bank president makes $1,000,000. I've tended to shrug that off. It would be a beastly system if we mandated that everyone made the same wage. It would never work at all.

But I have to say, I look around at the world today and all I see are money grubbers desperately squeezing every last dollar they can out of everyone they meet. Providing value? Not a priority. Giving good service? Does that matter? What matters is that they can squeeze an extra dollar out of each transaction, all day long. Look at the insurance companies and Obamacare. That's a money grab, pure and simple. It's got almost nothing to do with healthcare and helping sick people. Who cares about them? There's money to be made.

I think that we've ended up with a terrible economic system. I don't really know the solution (less government involvement would certainly help). But I now refuse to smile and say “The boss signs the paycheck so we must all bow down and insist that the Boss is always right about everything. If you have gripes, then go start your own company!!!!!” I just think that is unreasonable. There is a problem in our society and we can't ignore it forever.

The problem in our society can be solved with revival! Capitalism cannot operate without a moral code.
Do unto to others as you would have done to you becomes Do unto to others before they can stick it to you
We lost this country when they removed the Ten Commandments from the town square.

I am over the idolation of the "productive class"..there is a reason why the middle class is shrinking into the lower class while the elites get richer....

you work a solid job for decades and you still don't own your home...every cent in your retirement accts are watched and taxed by the govt,only to take every single cent when you are dumped in a retirement home..yeah.wealth...

I too believe in the value of the arm’s length transaction. If both parties in the trade believe they are getting fair value, this is the way. And we are not equal and should expect some will succeed to far greater wealth than others, so there is no harm. Also I would note that often these comparisons are not using the same time basis. A person just entering the work force cannot fairly be compared to someone with many years of experience. But we see this in many of the surveys.

I agree that the push for greater gain is something to consider, the term is greed. the solution is to provide better training to both parties, and when that is not enough, provide more competition. Clearly an example will help. Airlines compete with service and comfort, at the cost of customers and fares. When there is collusion with each airline charging the same and provided cramped accommodations, then this “restraint of trade” condition can be remedied using the justice department. And it should be.

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