By John Tamny for RealClearPolitics
He didn’t pay enough attention to them. who is not?recent front page Washington post The story lamented that Elon Musk “placed himself in turbulent geopolitical issues that many Washington policymakers were concerned about while he bypassed them.” Breaking up is hard, it seems. If Democrats are to be believed, Musk is moving on.
As often happens in real life, personal achievement results in the transfer of an individual to a new set of friends. Democrats feel left out. Feeling abandoned, they were “more outspoken about their need to control Musk.” More realistically, they need to relax. Musk doesn’t need to answer them, nor should he, simply because he answers a smarter master every day: the market.
Lest lovesick Democrats forget, Tesla is a public company, so is Solar City, and so is Twitter, at least for now. Think about what that means, especially as it relates to Washington. There are 435 members of Congress and 100 senators. No doubt many of them are very smart, but it’s safe to say that North Korea and Cuba have some very smart top political leaders.
Of course, the former Soviet Union also had some bright minds. But as evidenced by the tragic extent to which the Soviet Union, Cuba, and North Korea lagged behind, the few or even hundreds of wise men who plan their results at the top can’t match the market. Not far.
Even if we assume incorrectly that the 535 members of Congress and Senators are the smartest Americans, they are no match for the US population. Indeed, while it is an obvious statement that there are more than a few dense members of the “Resistance” (WC Fields) masses, the total knowledge of the American people far exceeds that of Washington’s political class.
I just said “market”. Never forget that the people are the market, which explains why the free market always beats government programs everywhere.The latter includes a microscopic minority of knowledge, while the former includes everyone.
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Based on this fact, is it surprising that the results of the free market always far exceed those of “expert” planners? Markets are the personification of information and knowledge. period.
Outcast Democrats will claim they supported SpaceX when Musk was on the brink of bankruptcy and that the federal government has long supported electric vehicles through subsidies, but that view is narrow.
There’s no question that SpaceX’s federal contracts played a big role in Musk’s difficult times, but Musk has been known to save taxpayers a ton of money with reusable rockets. Right or wrong governments are spending a lot of money on space exploration just to get Musk to keep costs down.
As for electric cars, it doesn’t appear that Musk has created a rather unnecessary subsidy. In fact, all auto companies’ first 200,000 or 300,000 electric vehicle sales are subsidized by a $7,500 federal tax credit. This isn’t a defense of the latter, or that it’s necessary for Tesla’s survival (probably not given the makeup of Tesla’s buyers), but that federal relief wasn’t created specifically for Musk.
On top of that, no automaker’s valuation has soared by about $1 trillion like Tesla, despite the subsidies that every automaker is said to receive. What this tells us is that, unlike everyone else, investors with a real stake in the game apparently see the car as the starting point for what Musk intends to achieve with the technology that powers Tesla cars. This is crucial.
Just because politicians and other political types that currently feel Musk “invisible” are bound by what is known; just like the world that exists today. Conversely, Musk’s massive wealth shows that someone isn’t bound by a highly limited celebrity. Investors expect him to accomplish much more in transportation than is known today at the cutting edge.
Hopefully this explains to Democrats and other lefties why they’ve been “phantomed”. Precisely because Musk is responding to more stringent and future-shaping markets, if he slows down talking to Democrats about the present, it will greatly damage his own progress.
The simple fact is that from a business perspective, the present is the past. In other words, not you Democrats. It was Elon Musk who created a future that logically cannot be planned by someone who looks back.
Associated with permission RealClearWire.
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