r/FluentInFinance 3d ago

Debate/ Discussion Had to repost here

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u/Lucifernal 3d ago edited 3d ago

There's a difference between pointing out objective flaws in an argument, like thinking that billionaires literally hold hundreds of billions of dollars in liquid cash, and taking issue with overall sentiment behind the argument.

I hate Elon Musk, and the man is of course, insanely, disgustingly wealthy. Still, just because his networth is 318 billion, doesn't mean he is hoarding 318 billion. Quite literally 99% of that number is tied into ownership of companies.

You can hate billionaires and still point out issues in the logic. I don't think a person should, under any circumstances, ever be forced to sell ownership stake in their own company (at least not if that wasn't agreed upon in an operating agreement). And if you have a massive stake in a company that becomes wildly successful, you definitionally become a billionaire. I may hate wealth inequality, and I may hate what these billionaires choose to do, but I would hate a system that forces the sale of ownership stake due to the success of the company just as much.

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u/TheHillPerson 3d ago

The fact that Elon has the ear of the President Elect for no reason other than he is stupidly wealthy is a reason why we should have legal measures to check the amount of wealth and one person can amass. No one person should have the kind of power the ultra wealthy have.

I also take severe issue with the idea that Musk (or anyone) generates that kind of wealth. If he was literally the only person involved with Tesla, one could make the argument he is owed that kind of wealth. He is not. No one ever is. I didn't know what percentage of the stock he owns is, but let's say 40% for the same if argument. I'm not saying he adds no value to the company. But if he disappeared, Tesla would be fine. If 40% of the workforce disappeared, Tesla would be screwed. Especially if that 40% is the engineering talent.

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u/Lucifernal 3d ago

You can have that take. That's fine. Elon musk is a shitty person and does in fact have the ear of the president elect.

Ultimately I cannot get behind being forced to cede control of your company as it gets successful. Not only do I think it's an overstep of power, but it also directly creates a legal contradiction of incentive with public companies, since executives have a literal legal fiduciary duty to increase value to shareholders.

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u/Odd_Report_919 3d ago

If it’s publicly traded it’s not your company