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Today a Welfare Trillionaire Is Born

SpaceX goes public today. Bubbles and public assets are creating the first trillionaire in human history.

SpaceX goes public today at around $1.7 trillion. Elon Musk owns enough SpaceX stock that, on top of everything else he holds, Musk becomes the first person in human history to cross the trillion-dollar line. The coverage will be all hype. Unprecedented. A genius. Where’s he going next? What does the future hold?

It wasn’t like Elon Musk invented some amazing capacity. He didn’t do something transformational for the world. He didn’t harness electricity. He didn’t invent the transistor. He didn’t invent rocket flight. He didn’t invent satellite technology. He didn’t even make any of it that much better.

What he did was learn how to game the system. He took what America built through generations of investment and generations of hard work and turned it into a profit center for himself. He took American loans, American intellectual property, American space, American airwaves, and turned them into a wealth engine for one man.

Tesla exists because of a half-billion-dollar loan from the American government, handed over in 2010 when the banks wouldn’t touch him. The deal gave the government the right to buy 3 million shares of Tesla stock at a locked-in cheap price. That was our cut if the company took off. The company took off, and Musk rushed to pay the loan back nine years early, because, under the deal, early repayment canceled the government’s shares. They were worth about $270 million the week he wired the money, and Tesla’s stock has multiplied many times over since. The press called the repayment a triumph. We got our money back with a little interest, and he kept the stock the American people were due.

SpaceX is the same story just bigger. In a purely capitalist system, SpaceX wouldn’t exist. It would’ve died in 2008. The company was broke; three rockets had failed, and Musk was burning the last of his money. Then NASA wrote a $1.6 billion contract for cargo runs to the space station, and that money built the Falcon 9. The people who study this industry say it plainly: NASA is what saved the company when it was on the brink of bankruptcy.

And NASA by then was an agency we’d been squeezing since the 1980s. We decided, instead of doing things ourselves as a nation, instead of demanding the lion’s share of what we’d developed over 60 years of rocketry and satellites and spaceflight, that we’d hand it off to billionaires and let them compete for the contracts. SpaceX now holds around $22 billion in federal contracts. Across the whole Musk empire the public money runs closer to $38 billion. The launch pads, the airwaves, the satellites overhead, the early customers, the technology our space program spent two generations developing. He built on all of it, and we kept no share of it.

I’m not saying SpaceX is bad at rockets. The rockets work. But outbidding Boeing and Lockheed, the most bloated contractors in America, is a low bar, and he cleared it with technology our space program spent 60 years developing, on contracts we paid for. And China is proving right now that none of it was one man’s miracle. They’re behind on reusable rockets and behind on launch rates, sure. They’re also closing fast, as a national project, with state companies and state-backed startups and satellite constellations in the tens of thousands. Getting to space is something a country can decide to build and own. We decided to hand it to one man instead.

The rest of his fortune sits in Tesla, and that deal is even worse. Tesla is worth more than every other major carmaker on the planet combined. Toyota, BYD, GM, Ford, Volkswagen, Honda, Mercedes, BMW, all of them together, still short of Tesla. Plenty of those companies earn more actual profit than Tesla does. Toyota alone makes........

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