Hiltzik: Do Billionaires Think America Needs Them?

The Rise of Criticism Against the American Billionaire Class

In recent weeks, a growing conversation has emerged in the United States about the role and impact of the billionaire class. While many might assume that marginalized groups such as transgender youth, immigrant workers, or women fighting for reproductive rights are the most vulnerable, the spotlight has shifted to an unexpected group: America’s billionaires.

Zohran Mamdani, a candidate for mayor of New York City, has brought attention to this issue. As a self-described democratic socialist, he has faced intense scrutiny from media outlets and figures within the billionaire community. His comments on extreme wealth inequality have sparked debate, with some questioning whether billionaires should even exist.

Mamdani made headlines when he told NBC's "Meet the Press" that he does not believe the U.S. should have billionaires. This statement, while seemingly straightforward, was framed by some as radical or extreme. Critics like John Catsimatidis, a billionaire real estate and supermarket tycoon, argued that wealthy individuals support essential institutions like museums and hospitals.

However, the broader context reveals a system where tax policies favor the top 1% at the expense of public services. A tax structure that benefits the wealthy often leads to austerity measures for vital sectors such as healthcare and education. These are public goods that should not rely on the generosity of a few.

The scale of billionaire wealth is staggering. Timothy Noah of the New Republic highlighted that owning $1 billion is more than any individual could ever count. Forbes reports that 15 Americans possess hundreds of billions, emphasizing the immense concentration of wealth.

A recent article in the Financial Times defended billionaires, arguing that they contribute to the economy by creating value. Michael Strain, a writer for the American Enterprise Institute, claimed that billionaires make the rest of us richer. He used Jeff Bezos as an example, citing his $240 billion fortune and applying a calculation by Nobel laureate William D. Nordhaus. According to Strain, Bezos' wealth represents only 2.2% of the social value created by Amazon’s innovations, implying that he generated $11 trillion in value for society.

This argument, however, has been criticized as flawed. Nordhaus’ work focused on corporate gains, not individual entrepreneurs, and his calculations involved complex economic formulas. Moreover, it doesn’t make sense to extrapolate social value from an individual’s wealth alone.

Strain also oversimplified the contributions of innovators, suggesting that figures like Bill Gates and Michael Dell single-handedly improved productivity. In reality, these achievements were built on the labor and efforts of countless others. Many workers who helped build these companies struggle to make ends meet, often relying on public assistance.

Amazon, for instance, has revolutionized retail but at the cost of displacing small businesses and underpaying its employees. A 2022 lawsuit in California accused the company of anti-competitive practices, claiming it manipulated prices and limited consumer choice. Amazon denies these allegations, stating that the claims are false and misguided.

This brings us back to Mamdani’s broader message. He echoes the sentiments of politicians like Senator Bernie Sanders and Congresswoman Alexandria Ocasio-Cortez, who argue that every billionaire is a policy failure. This perspective suggests that the accumulation of extreme wealth reflects systemic issues such as regressive tax policies and the erosion of public services.

Mamdani’s plan includes raising the state corporation tax and imposing a surcharge on high incomes to fund public services like free transportation and childcare. Critics have raised concerns about the potential impact on New York’s economy, but Mamdani argues that these policies would promote greater equality and support for all residents.

The media’s focus on Mamdani’s stance has been predictable, with some outlets feeding on narratives that paint billionaires as essential to the city’s success. However, this approach overlooks the deeper issues of inequality and the need for systemic change.

As the conversation around wealth and power continues, it becomes increasingly clear that the role of the billionaire class in American society is being re-evaluated. The debate over their existence and influence is not just about economics—it’s about fairness, opportunity, and the future of the country.