Analytics

Monday, October 14, 2024

ELON MUSK WANTS TO BE THE MOST POWERFUL MAN IN AMERICA


Ambition, as Gordon Gekko may have said, is good. The drive that makes individuals excel in their chosen field and life is essential to change the world. In a globalized world, where corporations can be wealthier than many nations by economic measure, the oversized influence that the leaders of these corporations may have on any world or national issues is a given. But while ambitious corporate leaders may want to influence the destiny of nations, the objectives of corporations –survival in a competitive world and maximizing profits for its shareholders— are not necessarily compatible with the objectives of any given nation or lead to its most positive outcomes.

Smaller nations overall may end up with the short end of the stick when a global corporation has an interest in a particular resource in that country, be it a commodity, its market, or its talents, yet individual nationals aligning with those foreign interests will thrive. And then there is the U.S., the largest economic, soft and military power in the world. A country in which national interests are mostly not subjected to the particular economic interests of a single or reduced group of corporations – mostly. The competing interests of each corporation or industry group achieves a messy balance, brokered by the government and the party in power’s own political interests, a balance that energizes business, social creativity, and renewal. Managing the balance of competing interests between the economic power of corporations through the political power of the government has made the U.S. the most advanced economy in the world, churning innovation in all fields of human endeavor. This competition of interests is key to the power of America.

As intrinsic to the power of America is the separation of Church and State, so is the separation of Business and Governance, creating the conditions which allow that creative churn of competing enterprises. Just like Church and State coexist and support and rely on each other, it is natural that Business and Governance also do. But the nature and objectives of a businessman catering to his customer base are different than those of a government functionary catering to a citizenry. The Constitution essentially enshrines the necessity of that separation and recognizes that difference by virtue of its Emoluments Clause.

The illusion of the successful businessman running a country efficiently is just that, an illusion. None, historically, has done so. It is a persuasive argument, in particular for those with a penchant for the control of a bureaucratic order; but societies are not an organization chart with replaceable (fireable) subordinates. In the U.S. the particular case of Donald Trump stands out, presenting himself as a successful businessman that could run the country better than any politician.

Leaving aside his multiple bankruptcies and well documented financial and fiscal shenanigans, there is no question that Trump has established himself as a brand in the business world.  That, by itself, is a measure of success and has created personal wealth for him, if not necessarily for his companies. He has personal success, but his business successes are questionable. He has parlayed his personal successes as positive qualifiers deserving of political power, but he seems to have Impostor Syndrome regarding his business successes, delving into selling the oddest branded merchandise. Enter Elon Musk.

Elon Musk was born in South Africa. His father had interests in an emerald mine and airlines, among other endeavors and was a serial entrepreneur, a trait his son picked up upon. Young Elon, in search of a bigger pond, went to the United States via Canada (his mother is Canadian). In 1992, after graduating with double degrees from the University of Pennsylvania (physics and business, from Wharton), he was admitted to Stanford. While still on a student visa he dropped out and started his first true company, Zip2, an online map guide which was eventually sold to Compaq, netting Musk in excess of $20 million. He describes his immigration status at the time as a “grey area.” In 2002, ten years later, he became a U.S. citizen.

Musk has been a successful serial entrepreneur, founding or seeding companies and selling them to reinvest in increasingly bigger and complex ventures. His ambition and entrepreneurial spirit makes him impatient with obstacles to his vision, so he often clashes with regulations or organizations which he believes impede such vision. These clashes have led to multiple legal confrontations, suits and countersuits.

Musk is a savvy businessman and entrepreneur, something that Trump admires and wishes he could be, just as he admires and wishes he could emulate strongmen like Putin, Xi, Kim, or Ornan, even possibly Maduro if it were not politically inconvenient. Musk’s attention on Trump is flattering and, notoriously susceptible to flattery, Trump has embraced Musk as a genius because he supports him, directly and indirectly, (starting by “unbanning” Trump from Twitter, now X). To Musk, however, Trump is an investment that can return great power to him over all the regulatory and procurement agencies of the U.S. affecting his other businesses. Musk has found in Trump a useful idiot to achieve his goals expeditiously.  Leaning on Trump, Musk can go places, even Mars. With Trump, Musk can be the most powerful man in America and the world; or so he thinks.

Running a country like a business is not realistic. A business is (or should be) focused on market segments and its customers, as well as competing for those customers with its rivals. Government is focused on all of a nation’s citizenry, not a segment of it. Companies are a relatively short-term propositions fulfilling a market need and which succeed when they adapt to competition, market shifts, and new technologies within an established regulatory framework; successful nations are long term propositions, permanently laying foundations for generations to come, including structures and frameworks which allow the creative churn of capitalism and freedom to thrive, and the renewal of its governmental institutions to occur.  

Trump governed and runs his campaign as businesses, seeking profit for his principal shareholder (himself) and focusing on “his” market segment, ignoring and demonizing the “competition” to the extent that he brands his supporters as Americans and his non supporters as non-American. That is why he claims that if only “true” Americans voted he would win unquestionably.

Musk doesn’t care. He wants what he believes will further his own long-term vision for the world, a world in which he sees climate change as an existential threat, advocating for a carbon tax and of course, electric cars; solving the immigration policy stalemate as a market and population solution; a place for government in the regulation of AI; a new world in Mars, where government is by “direct democracy” of empowered citizens; and many other positions that clash with Trump’s (stated populist) views. With Trump as “his president,” Musk may even believe that his businesses will thrive and his world vision can be implemented. Trump, however, has demonstrated time and time again, that his loyalties and interests are a one-way street, leading to himself only. Like all zero sum businessmen, he believes that anyone that thrives under him, is beholden to him and his authority. That all authority rests on him as the leader, and that all responsibilities can be deflected as he sees fit. It is probable that Musk will find once again this to be the case. The long list of brilliant people that were once close to Trump and now see him as a threat to everything America represents and its future may soon include Elon Musk.

Carlos J. Rangel 

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ELON MUSK WANTS TO BE THE MOST POWERFUL MAN IN AMERICA

Ambition, as Gordon Gekko may have said, is good. The drive that makes individuals excel in their chosen field and life is essential to chan...