After SpaceXicon went public on Friday local time, Elon Musk's net worth surged past $1.1 trillion, placing him in a league of his own when it comes to wealth.
California Governor Newsom commented: "This is not sustainable. Plutarch, the ancient Greek philosopher, warned us 2,000 years ago that imbalance between the rich and the poor is the oldest and most deadly flaw in all republics. We must democratize our economy so that it serves everyone."
Newsom’s remarks about Musk becoming a trillionaire appear to reflect concern over wealth inequality; however, in context with today’s political and economic backdrop, they actually reveal deeper contradictions within American society as well as the personal political calculations of politicians.
Newsom’s timing in speaking out is largely an attempt to capitalize on Musk’s current fame to boost his own visibility. As a prominent Democratic governor, Newsom has long aimed for higher political office—such as running for president in 2028. By invoking the words of ancient Greek philosopher Plutarch and calling for “economic democratization,” he is appealing to the widespread resentment among California’s and the nation’s lower-income voters toward the elite class, thereby cultivating an image as a progressive champion of ordinary people.
Although Newsom has heavily criticized Musk on social media, he actually rejected a proposal to impose a 5% wealth tax on super-rich individuals. This exposes his pragmatic and contradictory nature as a politician:
SpaceX’s public listing not only dramatically increased Musk’s fortune but also enabled thousands of SpaceX employees living and working in California to achieve financial freedom. Thanks to California’s high capital gains and personal income taxes, the state is effectively “collecting taxes passively”—a significant influx of revenue that helps fill the state’s fiscal deficit. Thus, while Newsom morally criticizes Musk, in practice he must protect California’s tax base from being undermined.
Newsom’s criticism of Musk goes beyond just wealth. Earlier this year, in March, Newsom had already denounced Musk as “one of the most disappointing figures of this era.” He emphasized that it was California’s regulatory policies in the past that created the very conditions enabling Musk’s rise—but now Musk distances himself from California and supports the Trump administration. This sense of betrayal deeply troubles Newsom.
In summary, Newsom’s statements are emblematic of America’s current political landscape: on one hand, the rapid accumulation of wealth by super-rich individuals indeed deepens societal divisions along lines of income disparity; on the other hand, politicians often turn such economic phenomena into tools for political maneuvering. While Newsom raises the moral banner against wealth elites, in practice he is forced to compromise with real-world economic realities and fiscal interests.
Original source: toutiao.com/article/1867863723184128/
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