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His companies have been valued at $XX biilion. That doesn't mean he (or any of the "richest people") actually has that much wealth. It means that he has gamed the system of company valuation. He needs that for his fragile ego.
Fuck that "trillionaire" shit.
No and yes. Actual wealth is stupid complicated and difficult to see, but when you have stocks priced that high, you can trade shares or take bank loans against them. So in some sense, it's partially real money.
That Schrodinger's wealth is super useful for gaming the tax system, and since it's not in cash or gold or whatever, you can't really guillotine the owners and distribute it because without the backing of banking and stock market, those stocks are indeed worthless.
As you can see, the neoliberal "free market x combines worst parts of every system and serves only evil, corrupt ones. There can never anything good come out of such an economic system.
You can take loans against the "worth" of your company, which has been overvalued in a corrupt way. It can grow into a pyramid scheme; Musk certainly did this.
Not only can you take loans against your shares, but you can pay the interest on those loans with dividends from the shares, and because they're a loans, the cash-in-hand is not taxable, so you pay NO TAX on it. You have no "income" on paper, but you can pay people and companies with shares instead of money, shares that you can literally conjure into existence by typing numbers into a spreadsheet. Those money and shares are really useful for greasing the palms of politicians, government officials, and hangers-on so that you can get your way. You can even use this money and influence to cause riots and stoke division in society.
His net worth is inflated even by American standards where net worth is already insanely inflated.
A lot of times, company evaluation is calculated by being roughly 10x it's yearly revenue. Alphabet, meta, all fit this. Space X is literally valued close to 100x
I listened to a podcast about this and according to that it's more insidious; valuation companies are owned by the people who own the business to be valued, and similar types of corruption.
I mean, isn't a company's valuation decided by the company themselves? Rest, when market forces are controlled by private hedge funds, asset management companies, and retirement funds, I feel normal Market rationality cannot be assumed. Market ownership right now is highly concentrated in these entities, and they have all the incentives to keep these valuation up for the reasons you stated.
It's interesting that the more you learn about the market the more it looks like a ponzi scheme😂