REUTERS/Abhishek N. Chinnappa
- Billionaires are sometimes criticized for having excessive wealth and for fueling gross inequality.
- Two professors say the uber-wealthy should be celebrated for improving people’s lives in many cases.
- Billionaires fuel growth through innovation, and raising their taxes could backfire, they told BI.
Critics denounce billionaires as greedy and corrupt, bemoan their existence as evidence the to tackle global problems through philanthropy, others have given minimal amounts of money away and instead wrapped it up in trusts and other structures to reduce taxes and build dynastic wealth.
What else should people reconsider when it comes to billionaires?
Instead of saying that every billionaire is a policy failure, we should instead embrace the idea that every billionaire is a policy success. People become billionaires by providing a product or service that is so valuable that millions of people are willing to pay for it voluntarily. Think of Taylor Swift or LeBron James as examples. They’ve enriched millions of fans’ lives through their hard work and talent.
When these billionaires make a big profit, it’s because they deliver big benefits. In contrast, public officials can only get most people to pay for the products and services they provide by threatening them.
Swift’s “Eras Tour” was so popular that it helped revitalize the US leisure industry last year, even earning a shoutout in the Philadelphia Fed’s Beige Book for fueling the city’s best month for hotel revenue since the pandemic began.
One economist predicted James’ return to the Cleveland Cavaliers in 2014 would deliver a $500 million boost to the local economy, but the actual impact was likely lower.