The Myths That Made Elon Musk

ft.com

7 pointssajid5 comments

Musk will eventually understand that part of the goal of government outlays is not getting the job done, but simply to spend money to keep the wheels of economy moving.

Still if the government doesn't spend it, maybe other people will find better things to do with it.

Sure enough, they will invest it, because we are speaking of marginal incomes of the rich that could be taxed away and spent by government - these people already consume everything they want, the only thing they do with extra cash, is investing it.

There are already more than enough available investment dollars in the USA. More of them than viable business ideas. Adding even more means only asset inflation and even higher P/Es that progressively make stock market resemble a Ponzi scheme, and further increase of real estate prices that are already unaffordable in most of the country.

Well, that's one option but not the only one. Like in the Ferguson riots one of the legitimate gripes of the locals was the local government raised money from hard up working people by stopping and fining them which often caused a lot of problems. They could use the money to get rid of that stuff rather than sending it to the rich.

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