Because the wealthy provide unlimited value back to the world?
If you have a gap of over 10,000x, then the most likely cause is that the system is broken rather than some humans make the world way better than other ones.
If you have a gap of over 10,000x, then the most likely cause is that the system is broken rather than some humans make the world way better than other ones.
To make it concrete, hHow do you think SpaceX should spend its resources differently than it does?
That's silly.
You are advocating for either:
a) SpaceX should not have been started in the first place
OR
b) Now that it has made so much possible and is so large, it should be disbanded and the assets distributed to these hundreds of thousands of small businesses? You do realize that if you disband it, the shares would not be worth much, right? They only have value because they represent future profits from the SpaceX business.
Wouldn't be bad.
Also, without SpaceX we would now be entirely dependent on that disgusting despot Putin for all space launches, but maybe that doesn’t matter to some people, the “we don’t deserve to go to space” set who feel that all the money spent on any space program is better used on welfare programs? I suspect those people would still be pissed when their GPS stops working because the satellites failed, or were destroyed by an even more emboldened Russia that doesn’t share their values or their pacifism.
At least get your facts straight. A quick search will reveal that SPCX P/E ratio is no where close to the absurd number of 5,000 that you're throwing around.
I was being generous remembering the not so distance past.. its earnings are actually negative this quarter EPS = -0.68 did you notice the negative number that means negative P/E way worse than that 5000
Of course, that statement sounds reasonable. However, to make it concrete, who do you think bought which election?
I'd be very curious to see your example demonstrate what you mean by "buy".
The funniest part is that Musk is a Democrat who was driven out of that party with pitchforks due to not swerving hard with the party elites at the time of Woke 1.0. (Personally, it took me a few more years to realize the bandwagon I was on was no longer doing anything for people like me who work and play by the rules. But I left too.)
Owned in the end by the very same dentists, no?
But sure, keep imagining PE is pumping money into the industry to buy nothing.
"The percentage of dentists affiliated with private equity has nearly doubled over the course of six years"
I don't follow what point you're trying to make here.
> If anything it should be deflationary because the rich mostly don't spend their money, else they wouldn't be rich.
The exact opposite is the case. "The rich", like all people who are able to put money aside for retirement/savings, seek to secure their wealth by diversifying their portfolio. In other words, they buy assets.
The other part is that ultra wealthy people will pay far above market value for basically everything, which creates inflationary pressure.