- cross-posted to:
- aboringdystopia@lemmy.world
- cross-posted to:
- aboringdystopia@lemmy.world
Elon Musk is on pace to become the world’s first trillionaire by 2027, according to a new report from a group that tracks wealth.
Informa Connect Academy’s finding about the boss of electric carmaker Tesla, private rocket company SpaceX and social media platform X (formerly Twitter) stems from the fact that Musk’s wealth has been growing at an average annual rate of 110%. He was also the world’s richest person, with $251bn, according to the Bloomberg Billionaires Index, as the academy’s 2024 Trillion Dollar Club report began circulating Friday.
The academy’s analysis suggested business conglomerate founder Gautam Adani of India would become the second to achieve trillionaire status. That would reportedly happen in 2028 if his annual growth rate remains at 123%.
The S&P 500 is “worth” 45 trillion dollars.
The M2 money supply is less than half of that. There does not exist as money dollars to spend as the nominal value of all the stock.
The stock value is extrapolated from the shares that do move, but those extrapolations fall apart in the “cash it all out” scenario.
That being said, it just means we have to be careful about how we proceed. For example, better tax capture of loans and estates, which is a big dodge for people with high stock wealth.
Cashing out the entire S&P 500 is very different from cashing out one billionaire. Most of the people who buy stocks already own stuff on the S&P 500, so it’s unclear who that trade would be with, exactly. Same exact thing for real estate: if you sold the entire continental US (again, whatever that means) it would probably exceed 45 trillion, but I’m still pretty comfortable saying if you own 100 billion worth of Manhattan real estate, you actually have 100 billion dollars, and could reasonably pay a 90 billion dollar bill given enough time.
Careful is good when it comes to policy, I definitely agree with that.