Elon Musk has been a public figure for more than a decade. From beloved comparisons to Tony Stark to the persona non grata in liberal circles, he is now the paragon of what Ken Martin would call the “bad billionaires.” As he openly influences Trump’s policy and trillions of dollars in funds, concerns regarding the rise of oligarchs have become a primary feature of the public discourse. Yet, Elon’s prominence and governmental influence should not be an example of good versus evil. Rather, it demonstrates the perpetual battle between capitalists and the falling rate of profit.
Government and the rate of profit
The tendency for the rate of profit to fall is a core tenet of Marxism. Marx explained that as production increases (due to technological innovation) the rate of profit would decline. Marx could have never predicted how much technology has advanced since his time, but this only gives credence to his theory. Facing this falling rate of profit, Elon, like any other capitalist, has used everything at his disposal to counteract this, government funds being one tool.
Marx and Engels described the government of any state as responsible for the common affairs of the bourgeoisie. In Elon’s case, they are also his banker and marketing department. His total net worth is approximately $394 billion. Yet, tens of billions come directly from government contracts—last November Ontario signed a contract worth $100 million with Starlink. Additionally, much of his net worth is speculative. Part of this current speculation derives from the belief that his businesses will thrive under this latest regime (25% increase as of November).
Neoliberalism and the Elon equation
Although Elon’s myopia is appalling, other oligarchs, whose actions often fly under the radar, shouldn’t be ignored. His bombast is emblematic of a wider feeling among capitalists—the fascistic tone is his personal touch. The fact is this has been the objective since the dawn of neoliberalism. The unabashed support of Trump demonstrates that the capitalist project no longer requires veiled attempts at swaying policy— capitalists can use their influence unabashedly.
No system can appear from nothing. Musk’s omnipresence is only the latest evolution of the oligarchy. He is in the same line as Henry Ford. Musk’s relationship with Trump compares to Ford’s with Coolidge. In 1924 the two men were natural rivals, vying for the Republican nomination. From there, Ford wrote glowingly about Coolidge and used their relationship to his benefit.
Even though Ford had vast influence over policy, Capital’s influence over government became less restrained with the dawn of neoliberalism. The governments of Reagan, Thatcher, and Mulroney chipped away at the institutions and benefits fought for by workers by divesting state funds into private entities. Mulroney in his cow-towing to Reagan, worked quickly to deregulate the Canadian economy by eliminating programs implemented to protect against American intervention, like the National Energy Program.
Today, the remaining working-class victories are crumbling under the weight of business interests. Now, public money is going directly to private actors putting everyday people in the unfavourable position of paying additional taxes to line the pockets of tycoons. This does nothing but empower the Elons of the world. In his case, it didn’t matter who won the election, because he knew that the money to SpaceX and Tesla would continue to cash. In Canada, we have our versions of Elon. One oligarch who has come under fire is Galen Weston. Although not as crude, both Galen and Elon benefit from government money, in the case of the crown prince of George Weston Ltd. It was reported that Loblaws—as well as Costco—received $25.5 million in public money, not including money received by the lower levels of government.
Beyond good and evil
As Elon gives his version of Ted Talks at the Alternative für Deutschland (AfD) parties, concerns of fascism and “bad billionaires” have become more pronounced. Alluding to fascism places the current moment as an outlier, rather than what it is—the progression of increasingly unchecked monopoly capitalism. Moreover, the call for “good billionaires” to find the solution is a misguided perversion dripping in capitalist realism.
As most electoral parties uphold the false ideal of moral capitalism, it distracts from the ultimate truth—capitalism is amoral. Capitalism’s sole concern is profit, anything that alludes to morality is in pursuit of this goal. We don’t have to look further than Trump’s inauguration to see this. Criticism arose regarding the techno-feudal oligarchs that took the stage with Trump. The sycophantic show of Musk, Zuckerberg, and Bezos surprised no one. Yet, there has been little to no commentary—beyond a passing reference—about Tim Cook’s role in funding the inauguration and how he waited patiently—away from prying eyes—in the Capitol Rotunda.
Whether billionaires are good or bad is irrelevant. Viewing things through this lens is idealistic. Using this as a primary basis to analyze the world can have harmful material effects. Take Costco for example. The CEO, Ron Vachris, is being praised for continuing Costco’s EDI practices. It is great that they are doing this; however, does this mean we should support Costco when they initially decided to oppose the demands of the workers and their union? It is easy to see that this question can divide the broader working class on the issue of supporting workers. It may be true that Ron Vachris is a better person than John May, CEO of John Deere, because John decided to end the company’s EDI initiatives. Yet, it is also true that both are working toward profit maximization while the rate of profit tumbles. If there comes a day that Costco’s profit drops, they too might succumb to the hateful practice.
Musk represents everything wrong with capitalism—this was true before his latest antics. There is power in righteous anger over the harm he is causing, but we must not inflate his ego by making it seem that he by himself is the primary issue. He is merely a symptom of a system that propagates oligarchs—whether they are good or bad—and cares for profits above all else.
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