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Elon Musk as manager of a firm or manager of a household? There is social utility in the efficient allocation of labor. While there are plenty of justification
by rz2k 8y ago
Elon Musk as manager of a firm or manager of a household?
There is social utility in the efficient allocation of labor. While there are plenty of justifications for devoting resources to help people find new jobs, and reduce frictional unemployment, keeping people in jobs where their compensation is not cost effective relative to their output impoverishes an economy and the people in it.
If on the other hand Elon Musk as a household were maximizing his personal return on equity in Tesla for the sake of purely wasteful personal consumption that would be another thing. However, he seems to invest almost all of his wealth into his companies.