Post #2002. Why can they get so rich?

Provocation #149 Why can they get so rich?

In the spirit of provocations..

Cook, Bezos and Musk all want to use money pulled from society and blow it off into outer space, abandoning earth and humanity. As Bezos has said, basically there is nothing on earth worth investing in. Some jobs are created by their space orgasm. But no Parthenon, no Museum of Modern Art, no university, no rising wages are carried into the future.

What rationale for marginal value can locate such wealth in such people? Why does such concentration not lead to a serious examination of the regulations and tax policies of ownership logistics, such value concentrating justifications, not get more serious examination? There is no way that their billions represent a well thought out return on effort. A german real-estate developer, asked if the income gap between him and one of his employees, was reasonable, answered

“I work 20 hours, the employee only 8, so of course its fair. ( a factor 2.5 in time resulting in a factor of 10,000 (10 to the 9th / 10 to the 5th ) in income? “ (Paraphrase from
https://www.youtube.com/watch?v=AFIxi7BiScI)

Do economists admire this so much they can’t make the critique?

Hard to image that it is a an income difference based on skills. Their management expertise doesn’t seem that unusual., but it might have been a kind of tenacity, bull headedness, even meanness, that got them to their position.

Tim Cook couldn’t make a dime at Apple if there were not customers. And customers are an essential part of the cycle and the customer is expensive paid for by society that does not get a return because it all goes to the top: lots of education, social position, all from of a larger society that has paid for those customers to be able to buy, but who do not share in the profit. I don’t see any literature about why Cook is such a great manager.

Increase in stock price? f the increase were distributed proportioned to the actual contributions of society and workers the result would be very different. Obviously a high evaluation of stock depends on lots of customers, and they are created by many other factors that are not being compensated but taxed.

It might be that the top positions in largest corporations have to be filled by somebody and the logic of size yields such high benefits to those who, like a winning run in a pinball machine, got there. If this is so, where is economics exploring the cause and the awkward consequences of such concentration?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s