Keep in mind that Mush created 4000 millionaires the day SPCX was IPO'd.
I wouldn’t suggest a cap, but I would suggest very high tax rates and a more stern eye towards anti-competitive practices and negative externalities.
As a thought experiment:
Celebrating unbounded greed (the most “extreme” option) would be celebrating when politicians steal as much money as they can by manipulating stock markets and Kalshi and taking crypto bribes, taking kickbacks from contractors and blackmailing or strong-arming the other branches of government.
Celebrating unbounded greed would be celebrating selling poisoned food and telling ourselves that its the stupid people’s fault for buying melamine-contaminated milk without getting it tested by their own independent third party before drinking it. And then blaming the stupid people again when their third party testing lab that was trustworthy gets purchased by the same private equity group that owns the milk company and starts watering down or falsifying their tests.
Celebrating unbounded greed would be celebrating people whose wealth increased by neglecting expensive safety protocols, blowing up neighborhoods with gas explosions, and silencing them by intimidation, as well as blackmailing and bribing the judges overseeing any torts.
The more of this you allow and celebrate, the more your outliers grow and become a true bimodal distribution. Where the peak earners are, by necessity, extracting more value than they create.
The thing is, we have had a lot of things like this happen in most developed countries. There is a lot of corruption, and it’s not divided along party lines. Celebrating and glorifying unbounded greed is likely to lead towards a state where there’s less “rule of law” and more “rule by force”.
Relatively unbounded greed can probably work quite well in a society with a strong rule of law to protect against corruption, dangerous/damaging corner cutting and fraud… as well as an economy that actually meets the assumptions of a “free market”: i.e. no individual buyer or seller has enough concentrated power to significantly impact the supply-demand curve all by themselves.
I am not talking about people who steal wealth, which is illegal. I'm not celebrating or making excuses for thieves or criminals. I'm talking about people who create wealth via the free market.
I agree that externalities are a problem, as it pushes costs onto others.
> as well as an economy that actually meets the assumptions of a “free market”: i.e. no individual buyer or seller has enough concentrated power to significantly impact the supply-demand curve all by themselves.
The free market does not require that a large player be prohibited from shifting the s-d curve. For example, ever-cheaper computers shifted the curve. And that was good for us.
> For classical economists such as Adam Smith, the term free market refers to a market free from all forms of economic privilege, monopolies and artificial scarcities. They say this implies that economic rents, which they describe as profits generated from a lack of perfect competition, must be reduced or eliminated as much as possible through free competition. [0]
> The definition of perfect competition is when the following conditions all hold: A large number of sellers and buyers – A large number of consumers with the willingness and ability to buy the product at a certain price, and a large number of producers with the willingness and ability to supply the product at a certain price. As a result, individuals are unable to significantly influence prices. [1]
You are free to say that you personally don't care for "free markets" and use another term to describe the type of market that you prefer. But the textbook definition of "free market" was already defined 250 years ago as a market in which "a large player be prohibited from shifting the s-d curve".
0: https://en.wikipedia.org/wiki/Free_market
1: https://en.wikipedia.org/wiki/Perfect_competition
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> I’m just not convinced that value creation and value extraction are well-linked when examining outlier cases.
>> I am not talking about people who steal wealth, which is illegal. I'm not celebrating or making excuses for thieves or criminals.
Why would anyone assume that the most extreme outliers wouldn't (generally) be breaking some rules that the mode follow; breaking those particular rules would help them become an extreme outlier. Wouldn't it follow that if some % people are breaking rules to their advantage and getting away with it, that to exceed even those other "cheaters" that the most extreme outliers nearly must also be breaking those rules? It's like watching Lance Armstrong beat all the other cheaters and saying "There's no way he could be cheating!"
It feels like a fantasy to put so much blind faith in all the most extreme outliers and assert that none of them are doing anything illegal. Should we not tax illegal behavior much more severely than legal behavior? Would that not be rational?
Also --- of COURSE you "celebrate / make excuses for thieves and criminals". Uber would be a fantastic example of a group of criminals that you celebrate and make excuses for. Before Uber, if someone (even a municipal taxi driver) tried to pick someone up at an airport who flagged them down like a taxi, they would go to jail if they hadn't paid for an exclusive "airport taxi" license. Uber arranged taxis for airport travelers all the time - and they frustrated law enforcement using actual Obstruction of Justice via their "Greyball"[2] program. You can make excuses for them that none of this was found to be illegal/criminal, but Ycombinator partners are on record saying that the Lyft founders did, in fact, believe that what they were doing could very well land them in jail [3]. YCombinator partners encouraged them to move forward.
But you'd celebrate the Uber/Lyft founders and the YCombinator partners (as would I, for breaking the taxi cartel system that was even worse for the median American). And you have not ever celebrated the taxi drivers who went to jail for picking up passengers flagging them down at the airport before Uber/Lyft.
Perhaps this is because, to some degree, "capitalist" society is somewhat like a "racist" or "sexist" society, except instead of determining an individual's worth based on their race, capitalist societies discriminate based on how much capital one has. If you control enough capital, the laws are very malleable - what's illegal or not is what those with enough capital decide should be illegal or not.
Should the Lance Armstrongs of the business world be taxed the same as those who actually are not doping, but whose names we don't recall? Given that capital accumulation yields political/legislative/executive power, that might ensure that the Lance Armstrongs get to mold the law and its enforcement to their desires.
2: https://www.nytimes.com/2017/03/03/technology/uber-greyball-...
"A free market is an economic system where prices, production, and distribution of goods and services are determined purely by the laws of supply and demand, rather than by government intervention. In an idealized free market, buyers and sellers voluntarily exchange goods, and competition naturally drives innovation, efficiency, and fair pricing."
That's what I'm talking about.
The wikipedia Perfect_competition reference does not mention "free market".
Google says Adam Smith never mentioned the term "perfect competition".
I explicitly made no such claim: "I am not talking about people who steal wealth, which is illegal."