SpaceX IPO Windfall: Employees Eye Rolexes and Private Jets

Everybody's attention seems focused on Elon Musk today, thanks to the SpaceX IPO (I've made a few bucks on SpaceX already myself). That's understandable; he is now the first trillionaire in history. That's a heck of an achievement, and he's earned it.

There's another great thing coming out of this, though: A bunch of SpaceX employees are now millionaires, too.

Hooray, capitalism!

The SpaceX IPO is expected to mint thousands of new millionaires and multiple new billionaires. While current and former employees won’t be able to sell their shares right away, some are already planning how to spend their windfall.
That newfound wealth could have a ripple effect across the luxury property markets near SpaceX’s office hubs and boost spending on watches, private jet charters and other status symbols, experts told CNBC.

This is Economics 101, under which rules Elon Musk has become a one-man rising tide that's lifting a whole bunch of boats.

Real estate agent Gerard Bisignano said he has recently received inquiries from several longtime SpaceX employees looking for homes in the South Bay area of California. They range in age from their mid-30s to early 40s, he said.
“They seem to be in a state of disbelief themselves that they’re suddenly going to be able to, in some examples, buy a home for their parents. They’re going to have all this discretionary income that they can really do what they want,” said Bisignano, a partner at Vista Sotheby’s.

When it comes to employers, these people chose well.

Now, some people (I'm looking at you, Senator Warren) will probably decry this creation of wealth, even while some of these same people are at a loss to explain how they achieved a net worth of $20 million on a Senate salary. But this is how an economy works. This is how wealth is created. This is how you lift people out of poverty, or in this case, how you lift people out of the middle class.

Elon Musk Becomes the First Trillionaire in Human History — and the Left Immediately Lost Its Mind

Now, there's a chance that some of these nouveau riche folks will blow their boodles. We see examples of this often when we see a multi-million-dollar lottery winner, where they end up broke in a few years. When you make wealth, when you make money by starting and building a business, there's a discipline that comes with it. But a lot of people aren't interested in earning money, so much as in spending money. And that's OK, too. It's their money.

Consider as well all the economic activity these folks will now generate. Every yacht, every fancy house, every Italian sports car, every Rolex watch, all have a chain of people behind it, people who build, transport, every aspect of taking whatever the product is from raw materials to point of sale.

That's capitalism at its finest. Wealth, after all, is not distributed. It is created and earned. A lot of people at SpaceX took part of their compensation, it seems certain, in stock, and now their gamble is paying off.

That's how wealth is created. That's how markets work. And there are now a bunch of people who are far wealthier than they were yesterday. That's a great thing, no matter how much Democrats hate the idea.

Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.

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