The Facebook IPO
Unless you’ve been living under a rock lately you already know by now that Facebook had its IPO yesterday. Its coming-out-party finished up pretty much as expected when it closed at slightly over the estimated price point of $38 a share thus generating $104 Billion in new capital. There are officially 191 sovereign economies in the world. Had Facebook been listed among them it would now rank as number 60, based solely on yesterday’s activity.
To put things in perspective consider this. Facebook was created by a 20 year old in his dorm room. Over the next 8 years in a capitalist system he created more wealth than the net GDP of roughly 70% of the world’s nations created in the entire year 2011. In a single day multiple Billionaires and over 1,000 Millionaires were created. This doesn’t even consider the 10’s of thousands of high paying primary jobs and an untold number of secondary jobs that have been created. California expects that this IPO alone is going to generate several $ Billion for their cash strapped economy.
Capitalism just created wealth and already the socialist are trying to take it away. One of Facebook’s co-founders, Eduardo Saverin, renounced hisU.S.citizenship, a move that is estimated to save him several hundred $ Million in taxes. Instantly, the Left, led by Chuck Schumer jumped on the idea of creating a special tax to keep others from following Saverin’s lead. The Left never learns.
I’ve discussed before how states likeCaliforniaandNew Yorkkeep scratching their heads wondering why all the wealthy continue to vacate their states. Meanwhile states with low or no income taxes likeFlorida,Texas, andNevadaare seeing an influx of new wealth migrating inward. If Schumer gets his way he won’t be keeping other people from leaving. What he’ll be doing is preventing the much needed capital of foreign investors from coming here in the first place. Capitalism just showed us the path to prosperity. Meanwhile, the Left and their one step forward thinking just showed us how to screw it all up yet again.