Should Elon Musk get an award for reducing inequality?
Any time that money is spent in a richer-than-average state, e.g., via a federal handout to Harvard University or a Medicare/Medicaid purchase of pharma from California or New Jersey, America’s income inequality level is increased (and it’s already “a public health crisis” according to Stanford and “obscene” according to our best lawmaker).
We have tremendous inequality among U.S. states. Household income in California was $95,500 in 2023 dollars (Wokipedia) while Texas households enjoyed only $75,800 in income and in Mississippi the median household income was only $54,000. Who works to redress this inequality? Not the federal government, which keeps spending taxpayer money in the richest states, either directly (grants to universities, student loan subsidies, tuition subsidies) or indirectly (pharma and health care purchases).
But let’s consider Elon Musk. He has moved at least four companies from richer-than-average California to poorer-than-average Texas: Tesla, X, SpaceX, and The Boring Company. Is there anyone else alive who can be said to have done as much to reduce inequality among the states? If not, we must anoint Elon Musk as America’s Greatest Social Justice Warrior.
BBC:
The company is also getting an injection of $17.3m (£13.4m) from the Texas government to develop the site, a grant that officials say is expected to create more than 400 jobs and $280m in capital investment in Bastrop.
Although I can’t blame Elon for taking the state’s money, that last bit is upsetting to me as a 14th Amendment Equal Protection purist. Why is it acceptable for a government (state, in this case) to favor one business with tax breaks while hitting smaller and less-connected businesses with the full force of taxation. I would like to see all of these state programs eliminated so that 2-person company is on a more level playing field with a 2,000-person company.
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