Musk to be wealthier than poorest 46% of world population with SpaceX IPO, Oxfam says

Elon Musk is poised to become wealthier than the poorest 46% of the global population, approximately 3.8 billion people, once his aerospace and artificial intelligence company SpaceX launches its initial public offering (IPO). This analysis comes from the NGO Oxfam, which published its findings on Thursday.

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A concentration of wealth so extreme is symptomatic of decades of policies favorable to billionaires that have allowed them to write the economic rules in their favor.

Musk, also the owner of the social media platform X, is expected to see his personal fortune surpass $1 trillion with the SpaceX IPO, a milestone that would make him the world's first trillionaire. Oxfam stated that such an extreme concentration of wealth "is symptomatic of decades of policies favorable to billionaires that have allowed them to write the economic rules in their favor."

Nabil Ahmed, senior director of economic justice at Oxfam America, commented that Musk's ascent to trillionaire status "marks a new milestone of oligarchy and a dark day for democracy." He added that Musk would be "a government-backed trillionaire whose fortune has been boosted by an era of regressive public policies." Ahmed asserted that a trillion dollars "in the hands of one man" is incompatible with an "affordable economy and a healthy democracy," as economic inequality fuels political inequality.

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Musk's ascent to the category of trillionaire marks a new milestone of oligarchy and a dark day for democracy.

Oxfam's report further highlights the potential impact of taxing Musk's projected wealth. The organization estimates that a 10% tax on Musk's trillion-dollar fortune could eradicate global extreme poverty for an entire year, lifting over 800 million people out of destitution. The report also points out that even if Musk spent $1 million daily, it would take him 2,740 years to spend a trillion dollars. Even by donating $100 to every person on Earth, he would still rank among the world's ten wealthiest billionaires.

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Musk will be a government-backed trillionaire whose fortune has been boosted by an era of regressive public policies.

The organization reminds the public that a significant portion of Musk's wealth is not only built on past government support but also on alleged advantages gained during the Trump administration. SpaceX, for instance, derives a fifth of its revenue from the federal government. The IPO is expected to benefit government officials, venture capital firms, politically connected individuals, and company executives. SpaceX's IPO is anticipated to be the largest in history, potentially surpassing Saudi Aramco's 2019 record, with a market valuation around $1.77 trillion, placing it among the world's top ten largest listed companies.

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A trillion dollars in the hands of one man is incompatible with the idea of an affordable economy and a healthy democracy, as economic inequality breeds political inequality.