{"id":126812,"date":"2022-04-23T18:52:32","date_gmt":"2022-04-23T18:52:32","guid":{"rendered":"https:\/\/fin2me.com\/?p=126812"},"modified":"2022-04-23T18:52:32","modified_gmt":"2022-04-23T18:52:32","slug":"liam-dann-elon-musk-and-the-return-of-the-gilded-age","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/liam-dann-elon-musk-and-the-return-of-the-gilded-age\/","title":{"rendered":"Liam Dann: Elon Musk and the return of ‘the gilded age’"},"content":{"rendered":"
OPINION:<\/strong><\/p>\n If we forget about inflation briefly (surely we deserve a break for the long weekend), thenElon Musk’s potential Twitter takeover is the most interesting business story in the world to me right<\/span> now.<\/span><\/p>\n I think Musk is the most interesting character in the business world. But I hope he doesn’t get Twitter.<\/p>\n Putting aside moral issues around his extraordinary wealth (around US$270 billion), there’s a moral hazard in allowing individuals to have total control of media companies – social or traditional.<\/p>\n At a time when trust in government is low, multi-billionaires like Musk are wielding more power than ever.<\/p>\n Barely a day goes by when Musk doesn’t generate a global headline.<\/p>\n Since I started writing this column he’s made fresh headlines, revealing he doesn’t own a home and spends his days staying with friends around the San Francisco area.<\/p>\n The world’s richest man simply doesn’t have time for property it seems, he’s too busy working, making things happen, re-shaping reality.<\/p>\n That is what makes Musk more interesting than just the number of zeros on his balance sheet.<\/p>\n Musk is fascinated by the future and has both the scale and ambition to shape it.<\/p>\n And he is shaping it in myriad ways, not all of them good.<\/p>\n It’s probably the moral ambiguity that makes the Musk show so compelling.<\/p>\n The guy is one lab accident away from becoming a comic book superhero. Or supervillain.<\/p>\n It could go either way<\/p>\n Musk doesn’t fit standard definitions of conservative or liberal.<\/p>\n He’s the guy that turbocharged electric cars with Tesla and made it viable to imagine a world without petrol-powered transport. Tesla is now the fastest-growing car company in the world.<\/p>\n He’s passionate about green technology. Tesla has big plans for solar power. He’s also throwing money at a weird rapid-transit system of high-speed underground tubes.<\/p>\n Musk wants to be cool. He smokes pot and has good taste in music.<\/p>\n He dated uber-cool pop star Grimes.<\/p>\n But he also has a distinctly libertarian streak that puts him onside with some of the most right-wing groups in the US.<\/p>\n His views on free-speech have Donald Trump supporters cheering on his Twitter takeover plans.<\/p>\n They believe he’ll let Trump and other right-wing voices back on the site, giving them a crucial leg-up in the battle to take back control of the White House.<\/p>\n Musk is obsessed with cryptocurrency, which sits well with libertarian notions of shaking off government control over society.<\/p>\n He’s warned about the threat artificial intelligence is to humanity but he’s invested heavily in Neuralink – a company working to plug computers directly into our brains.<\/p>\n Why he needs Twitter isn’t clear. It isn’t the money, so we have to assume it is for the influence.<\/p>\n When it comes to Twitter, I’m biased. Like a lot of journalists, I spend far too much time on the site.<\/p>\n I’m invested. Not in a financial sense. I haven’t given a single dollar to Twitter, just countless hours of what media execs like to call engagement.<\/p>\n <\/p>\n Twitter is a profitable enterprise – but not hugely by the standards of its tech-boom peers.<\/p>\n Musk thinks he can make it more profitable.<\/p>\n But the way he’s gone about the takeover, with a steady streaming of mocking and slightly juvenile tweets, has done little for his credibility as a serious market player.<\/p>\n Still, the Twitter board was concerned enough to invoke something called a “poison pill” – issuing shares to dilute shareholdings and make the takeover more difficult.<\/p>\n The experts say Musk’s best next move is something called a “tender” where he makes his offer directly to all shareholders.<\/p>\n He’s clearly considering it because he keeps tweeting song lyrics like Love me Tender and Tender is the night.<\/p>\n The whole play for control comes across as an indulgence. A game Musk is playing to amuse himself and from which he can walk away with no consequences.<\/p>\n That highlights the problem of billionaires treating society like a giant playground.<\/p>\n Musk’s rise suggests a return to the “gilded age” where billionaires and powerful individuals dictated the terms by which people lived.<\/p>\n In the past 20 years, technological change has accelerated faster than we’ve seen since the late 19th century – when electricity and combustion engines changed the world.<\/p>\n Those who’ve been at the forefront of the revolution have grown extraordinarily rich.<\/p>\n The likes of Musk, Amazon’s Jeff Bezos, Meta’s Mark Zuckerberg, Microsoft’s Bill Gates and Alphabet’s Larry Page are so rich they rival the so-called “robber barons” of the original 19th-century gilded age – JD Rockefeller, JP Morgan and Andrew Carnegie.<\/p>\n These men were also celebrated as philanthropists while they exerted their power influence to undermine government.<\/p>\n At his peak, JD Rockefeller was worth an estimated US$450 billion in inflation-adjusted terms, almost twice Musk’s worth.<\/p>\n The gilded age was so dubbed by satirist Mark Twain to suggest a cheap knock-off of a proper golden age.<\/p>\n He was right to be cynical. It was a terrible time for workers and led the world into the epic market crash of 1929.<\/p>\n Perhaps we should be heartened that America has been here before and self-corrected.<\/p>\n But it took the Great Depression to re-establish public trust in government.<\/p>\n Musk is adventurous and rebellious. Traits that are innately charismatic. There’s a lot to like.<\/p>\n He’s never boring but in a world where history is already accelerating at a dangerous pace, that could be the problem.<\/p>\n