[throw149102]

My version of the statement reads more like:

If an entity manages to obtain a massive amount of wealth, far surpassing its own needs, and there is a definite need for that money elsewhere, then that is a policy failure.

The obvious example is a single person who's a billionaire - a person doesn't need a billion dollars for a house and some food. But it could also extend to a company, or even a subsection of the government. It's just in that case measuring the need becomes several orders of magnitude harder (what should an F-35 cost anyway?)

As far as definite need, the GP probably had these needs in mind: Healthcare, food, housing, and an uncontaminated environment. I think the US is failing in these aspects in such a big way that I would agree and say "billionaires are policy failures".

[avalys]

When Amazon stock goes up by 10% and Jeff Bezos' net worth goes up by $16 billion, where did that money come from? Who did he take it from? Where did those dollars come from?

Trick question! There is no money, no dollars. This is purely notional value, and you can't feed or house or decontaminate anyone with it.

And that's the problem with your statement. Most "billionaires" are billionaires because they (or, yes, their grandparents) built an incredibly successful organization which is now "worth" multiple billions and they still own some of it. But they didn't become billionaires by taking dollars from other people - they became billionaires by creating this value literally out of thin air, taking it from no one and depriving no one of housing.

Consider these two scenarios:

Person A is a sleazy businessman and manages to insert himself as an intermediary in every financial transaction in the US through bribing legislators. Over the course of a few years, he extracts $6 from every citizen of the US while paying only $20M in bribes. Yes, this person now has literally $2B in dollars, and I agree he is a policy failure.

Person B is a scientist who develops an idea for a more efficient airplane engine. He obtains venture capital funding and starts a company. 10 years later, he retains 25% ownership of the company, which is selling jet engines to Airbus and doing $500M per year in revenue on $450M in expenses. He re-invests the profits in R&D and employs thousands of people. The accountants say he could sell his company to GE for $5B.

Person B does not have a billion dollars, yet the media would characterize them as a "billionaire". This person is not a policy failure.

We should make it harder for Person A to exist. We should make it easier for Person B to exist.