Thoughts on the FB IPO – Wealth is NOT zero sum

The Facebook IPO reminds us that, contrary to political and media assertions, wealth is not a zero sum proposition. Zero sum means there is only so much of something to go around. If we have a pizza cut into 8 equal slices and there are 8 pizza eaters in the room the pizza is a zero sum proposition. It means that in order for 1 eater to get 2 slices another eater has to go without. It is popular these days to accuse the “rich” as greedy eaters of the pizza, taking a piece from others. Today we saw the birth of thousands of new millionaires and a couple of billionaires with the Facebook IPO. Now that’s what we call a STIMULUS PACKAGE!! New wealth was CREATED, not taken from others. These new wealthy people will benefit everyone by spending and investing their wealth in the economy. No one lost wealth at the moment the IPO created new wealth. The entire economy benefited. Wealth is not zero sum, folks. It is created every day and there is no limit. Don’t let anyone convince you otherwise.

Hats off to you FB team. If no one else says it, thank you.