Always bet on self-interest
Famed 20th-century British author Gilbert Chesterton (1874-1936) once observed, “The poor have sometimes objected to being governed badly. The rich have always objected to being governed at all.”
G.K. Chesterton didn’t have Elon Musk in mind at the time, but Musk’s recent and somewhat disturbing pronouncements suggest Chesterton hit the bullseye while simultaneously confirming the ultra-rich have not evolved to become more empathetic since Chesterton penned those words.
Most recently, in support of Donald Trump, Elon Musk, who, irrespective of his wealth, is nothing more than a private citizen, announced that he would cause “hardship” by personally overseeing a US$2 trillion cut to the federal budget. He added Federal Trade Commission (FTC) Chair Lina Khan “will be fired soon”.
Musk is acting like the professor of an ‘Applied Chesterton’ 101 course for billionaires who don’t like the idea of the law applying to them. And when many of them own major news information platforms, it’s almost impossible to even hear or read the counterarguments they don’t like.
It represents yet another example of how capitalism can fail the community. Don’t get me wrong, I think capitalism is far better than socialism, which eventually runs out of other people’s money. But it must be regulated in order to avoid its natural tendency to the accumulation of all wealth in the hands of the few.
Recently, U.S. political commentator, author, research director of the American Economic Liberties Project and anti-monopoly campaigner, Matty Stoller, noted he’s had Tweets and Facebook posts blocked for content reasons, such as alleging corporate consolidation and inflation are linked or citing articles about strikes.
Dave Dayen is the author of the Organized Money podcast and writes about tech platforms and censorship, as well as how big tech uses its platforms to control what people see and hear. Stoller writes, “To give you a sense of what corporate revenge might look like, Dave Dayen and I did an interview with entrepreneur and national security reporter Ken Klippenstein on how he and some of his readers were subjected to censorship by all the major tech platforms, and then an Federal Bureau of Investigation (FBI) visit, merely for publishing widely available information about a major vice president candidate.
Big tech isn’t the only sector in which Billionaires seek to control the narrative or change laws to harness, strengthen and preserve power and satisfy their self-interest. The finance sector I work in has been riddled with similarly-minded people for decades.
Recently, billionaire JP Morgan head Jamie Dimon effectively argued for the entrenchment of his bank’s near monopoly position by opposing the open banking rule, at a forum at the American Bankers Association.
The open banking rule would allow U.S. consumers to move their bank accounts more easily to other financial institutions by requiring financial institutions, credit card issuers, and other financial providers to unlock an individual’s personal financial data and transfer it to another provider at the consumer’s request for free.
JP Morgan holds 12 per cent of all deposits in America, and in 2024 made US$91 billion from the spread between what it pays depositors and what it charges for loans. It’s head, Jamie Dimon, reportedly said, “I’ve had it with this shit,” adding, “It’s time to fight back.”
Perhaps even more upsetting, his attack on regulators and on regulations that would benefit consumers, was met with rapturous applause from other bankers.
In the West, we feel empathy for the millions of good Chinese people who must submit to the dictatorship and rule of the Chinese Communist Party. But here in the West, we must acknowledge the reality many billionaires hold similar aspirations.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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