socialism

Michael R. Strain of the American Enterprise Institute has noted: Billionaire innovators create enormous value for society. In a 2004 paper, the Nobel laureate economist William D. Nordhaus found “that only a minuscule fraction” – about 2.2% – “of the social returns from technological advances” accrued to innovators themselves. The rest of the benefits (which is to say, almost all of them) went to consumers. If Amazon founder Jeff Bezos is worth $170 billion, then according to Nordhaus, he’s created over $7.7 trillion in value for society. Bezos has made each American around $23,000 richer. But Vermont Senator Bernie Sanders thinks an innovator’s 2.2 percent is too much. Sanders tweeted “Billionaires should not exist.” Continue reading on Substack.