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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLibertarian Elon Musk's growing empire is fueled by billions in government subsidies
Source: Los Angeles Times
Los Angeles entrepreneur Elon Musk has built a multibillion-dollar fortune running companies that make electric cars, sell solar panels and launch rockets into space.
And he's built those companies with the help of billions in government subsidies.
Tesla Motors Inc., SolarCity Corp. and Space Exploration Technologies Corp., known as SpaceX, together have benefited from an estimated $4.9 billion in government support, according to data compiled by The Times. The figure underscores a common theme running through his emerging empire: a public-private financing model underpinning long-shot start-ups.
... Musk and his companies' investors enjoy most of the financial upside of the government support, while taxpayers shoulder the cost.
Read more: http://www.latimes.com/business/la-fi-hy-musk-subsidies-20150531-story.html
Carewfan
(58 posts)and let him grow without the government help - isn't that the Libertarian way?
Recursion
(56,582 posts)He's something of a third wayer, but he's definitely not libertarian.
Marie Marie
(9,999 posts)Another illusion shattered - I thought he was a great businessman and he did all this on his own.
Recursion
(56,582 posts)Marie Marie
(9,999 posts)I read the article and thought I was missing something or that it was common knowledge that I had somehow missed. I always admired him and am relieved to hear that he is not another Libertarian hypocrite.
MH1
(17,600 posts)Politically, Musk has described himself as "half-Democrat, half-Republican". In his own words "I'm somewhere in the middle, socially liberal and fiscally conservative."[92]
In an interview with the Washington Post, Musk stated he was a "significant (though not top-tier) donor to Democrats, but that he also gives heavily to Republicans". Musk further stated, in order to have your voice be heard in Washington, you have to make some little contribution.[93][94]
A recent report from the Sunlight Foundation (a nonpartisan group that tracks government spending), found that "SpaceX has spent $4 million on lobbying Congress since it was established in 2002 and doled out more than $800,000 in political contributions" to Democrats and Republicans. The same report noted that SpaceXs campaign to win political support has been systematic and sophisticated, adding that "Musk himself has donated roughly $725,000 to various campaigns since 2002. In 2004, he contributed $2,000 to President George W. Bushs reelection campaign, maxing out to Obamas reelection campaign and donated $5,000 to Republican Sen. Marco Rubio, who represents Florida, a state critical to the space industry." "All told, Musk and SpaceX gave out roughly $250,000 in the 2012 election cycle.[93][95]
Musk had been a supporter of the U.S. political action committee FWD.us, which was started by fellow high-profile entrepreneur Mark Zuckerberg and advocates for immigration reform. However, in May 2013, Musk publicly withdrew his support in protest of advertisements the PAC was running that supported causes like the Keystone Pipeline. Musk and other members, including David Sacks, pulled out, criticizing the strategy as "cynical."[96]
Musk has stated that he no longer believes that the U.S. government should provide subsidies to environmentally friendly companies, as was done with Tesla Motors, but the government should instead use a carbon tax to discourage "bad behaviour". Musk argues that the free market would achieve the "best solution", and that producing environmentally unfriendly vehicles should come with its own consequences. Author and Stanford Professor Fred Turner responded by noting that "if you're an entrepreneur like Elon Musk, you will take the money where you can get it, but at the same time believe as a matter of faith that it's entrepreneurship and technology that are the sources of social change, not the state. It is not quite self-delusion, but there is a habit of thinking of oneself as a free-standing, independent agent, and of not acknowledging the subsidies that one received. And this goes on all the time in [Silicon] Valley."[97]
arcane1
(38,613 posts)Socially liberal and fiscally conservative is the definition of a libertarian.
RobertEarl
(13,685 posts)The only question is: Are the disbursement of the funds which constitute this action being socialism, being managed properly?
A capitalist would just count the profits while a socialist like Bernie would count the society-wide social and economic gains.
That's why a socialist as head of government is so important. Socialists do it best.
Recursion
(56,582 posts)nor in Musk's own words?
Recursion
(56,582 posts)For an alleged "libertarian" he sure donates a ton of money to Democrats; ten times as much as he does to Republicans despite claiming to be "half Democrat, half Republican".
Response to pscot (Reply #8)
Warren DeMontague This message was self-deleted by its author.
pscot
(21,024 posts)culture hero. He has fans and plenty of ardent defenders. Wombat, otoh, don't get much respect.
Response to pscot (Reply #20)
Warren DeMontague This message was self-deleted by its author.
pscot
(21,024 posts)seems unlikely, at least in any practical sense. I'd be more impressed if Musk could convince the pope to sanction birth control or get India to renounce coal burning. Humanity's future looks a bit dicey otherwise. Musk strikes me as a very modern iteration of the classic American confidence man; glowing promises, artfully hyped leading nowhere in particular. Just my opinion, of course.
Response to pscot (Reply #27)
Warren DeMontague This message was self-deleted by its author.
pscot
(21,024 posts)I'm not convinced Mr. Musk matters very much.
Response to pscot (Reply #34)
Warren DeMontague This message was self-deleted by its author.
pscot
(21,024 posts)I've given him a lot of thought before today. If he brings about the singularity that will definitely be impressive.
4now
(1,596 posts)But you already know that.
LittleBlue
(10,362 posts)SpaceX is revolutionizing satellite launching and space transport in general. He's a good guy, even if odd and antisocial. Why smear him?
Even if he were a libertarian, his work is too important not to fund
Response to LittleBlue (Reply #11)
Warren DeMontague This message was self-deleted by its author.
LittleBlue
(10,362 posts)Johonny
(20,888 posts)A) Elon Musk has hardly been massively innovative, but his companies are innovative to a degree (mostly to reduce costs)
B) he is massively anti-union
C) is not pro-regulation
D) is a huge propagandist of his companies (He clearly learned to market mundane things as massive new things like Steve Jobs)
E) has a vision of living on Mars free of our Government (Galts Gulch of the future)...
I don't dislike Elon. I've seen his facilities and his rocket up close. I think SpaceX is good at hype, but also has a functioning launch vehicle now. He isn't much different than most space companies only he's been better at fighting off oversight costs and unions. The illusion of Musk and the reality of Musk is all part of marketing. Don't be too swept away by his promise of future technology. He's just another big business that works partly off government funding that wants to maintain the total private company illusion. It is a mixed bag when dealing with him as with most people. Unlike most of the space industry that has purposely not marketed itself for the last 50 years, he has done nothing but that. He has changed space in a way no one else has. Space is now become very pro-marketing to a massive degree. That's his big innovation and it might not be a good one.
Response to Johonny (Reply #21)
Warren DeMontague This message was self-deleted by its author.
joshcryer
(62,276 posts)Response to Newsjock (Original post)
Warren DeMontague This message was self-deleted by its author.
joshcryer
(62,276 posts)He may be for renewables and against climate change, but he is not pro-labor. That much is sure.
Response to joshcryer (Reply #18)
Warren DeMontague This message was self-deleted by its author.
GreatGazoo
(3,937 posts)The big car manufacturers want to ban direct to customer sales of cars to keep Musk from eating their lunch.
The piece seems to allege that if the customers of a company use tax deductions or other government incentives (for clean energy for example) then that equates to a government subsidy of THAT company.
By that flawed logic, the IRS allowing businesses to write off expenses for gasoline equals a "subsidy" to Exxon Mobil.
The bias of the writer is betray here:
"if" ?! Solar panel sales for 2013: $13.7 billion (US only).
This piece is a twisted attack on government support for clean energy and action on climate change.
Egnever
(21,506 posts)and his new wall battery will change our use of energy forever for the better.
Rex
(65,616 posts)Without a bailout back in the 1980s, Trump would be washing cars right about now. I bet a lot of the well connected get all kinds of government kick backs.
sub.theory
(652 posts)Another example of how risk is subsidized but profits are privatized. If everything works out they keep all the winnings. And if it falls through then we will have foot the bill. Amazing how that works, isn't it?
Egnever
(21,506 posts)However we will all benefit from many of the technologies he is producing.
The new wall battery will change the world. Well worth our investment.
Starry Messenger
(32,342 posts)I'm sure when he Googles himself (or has his staff do it for him) even he will be impressed with the levels of osculatory posts.