First Earn Billions

Here’s my advice for Dr. Pollack. From his New York Times op-ed:

How much does Mr. Bezos plan to spend on this gonzo space adventure? He said he would start with $1 billion a year. He has every right to do that. I fear that he will go further and shoot much of his fortune into space. That would squander a staggering opportunity to serve humanity.

How big is this opportunity? Ignoring inflation, let’s assume that the annual investment returns to his fortune are about 5 percent. He can spend more than $6 billion every year, pretty much indefinitely. Consider a few obvious ways this money could help people here on Planet Earth…

If Dr. Pollack is genuinely committed to the projects he goes on to describe, he should first earn billions of his own. Then he can devote them to whatever causes he values. There’s an old wisecrack: it’s a difference of opinion that makes a horserace.

Among economists there’s another catchphrase: don’t compare utility functions. What’s worth a billion to Dr. Pollack (who doesn’t have one) may not be worth a billion to Jeff Bezos (who does). There are reasons to question his judgment. Exhibit 1: the Washington Post.

However, he has billions and it’s his prerogative to spend them however he cares to and it’s equally his prerogative to have a different opinion of what’s worthwhile than Dr. Pollack.