Nobel economist Paul Krugman attacks Elon Musk and Sam Bankman Fried and says the world is now ruled by ‘petulant, oligarchic’ oligarchs.

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Paul Krugman, Nobel laureate, slammed Elon Musk (and Sam Bankman-Fried) as “oligarchs”, in an opinion piece. Musk’s huge fortune keeps his fans loyal, even though his business dealings are shaky. He said that the “big fortunes made in IT technology made this story into a full-blown religion.”

Paul Krugman attacked prominent tech leaders such as Elon Musk or Sam Bankman-Fried. However, according to the Nobel economist, these are living demonstrations of how we live in an era where the “petulant Oligarch”.

“The very wealthy are surrounded with people who wouldn’t dare to tell them they’re acting badly. Krugman stated that he was not surprised by Elon Musk’s self-immolation and said so in an opinion piece for the New York Times Monday. Krugman was referring to Musk’s controversial acquisition of Twitter. “The interesting question is why are we now ruled over by such people. We are clearly living in an age of the petulant Oligarch.

He made the comments in response to Musk’s chaotic overhaul of Twitter. This project has triggered growing scrutiny over Musk’s leadership style and his political tweets. Krugman had been a vocal critic of Musk before the Twitter takeover. He called him an “insecure millionaire” and warned that Twitter is now at risk of a “Muskpocalypse”.

However, even though Twitter users voted for Musk to be removed as CEO, Musk still enjoys the support of his loyal followers. They see him as a visionary and not a “whiny brat”, Krugman stated. This could be due to Musk’s immense wealth. Many have compared Musk to Howard Hughes, a 20th-century business tycoon, but Musk’s wealth is far greater than Hughes’, even though Tesla stock fell 60% this year. This has helped to keep Musk’s fans loyal, even when his business deals fail and investors turn sour.

The top economist said that many of the superrich, who used to be a secretive class, have turned out to be celebrities. “But the huge fortunes made by information technology transformed this story into a full-blown religion, with Steve Jobs-like wannabes everywhere you look.”

This same story could be applied to Sam Bankman Fried, the disgraced cryptocurrency executive who is facing fraud, money laundering and conspiracy charges following the collapse of his crypto-exchange, FTX. Although Bankman-Fried’s reputation has been destroyed, he was regarded prior to the implosion FTX’s finances as a wunderkind, and the benevolent visage of the entire industry. Krugman describes him as “the scruffily dressed, mussy-haired visionary who grasps what the future is in a way that normies cannot,”

However, the reputations of Musk and Bankman Fried could indicate that the lure of “genius entrepreneur” has diminished.

Krugman stated that Musk and Bankman-Fried could end up doing a service by tarnishing the legend of the genius entrepreneur. Musk’s Twitter antics have degraded what had been a valuable resource. Some of us used it to get information from people who knew the subject. This story is unlikely to have a happy end.

Krugman advised his Twitter followers to switch to Mastodon and other social media platforms, especially after Musk banned prominent journalists last week. This raised concerns that Twitter users might be censored at Musk’s will.

Business Insider has the original article.
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By: jsor@insider.com (Jennifer Sor)
Title: Nobel economist Paul Krugman slams Elon Musk and Sam Bankman-Fried, and says we’re living in an era of ‘petulant oligarchs’
Sourced From: markets.businessinsider.com/news/stocks/paul-krugman-elon-musk-sam-bankman-fried-oligarchs-twitter-ftx-2022-12
Published Date: Tue, 20 Dec 2022 15:44:01 +0000