Facebook is going to IPO in a few weeks and San Francisco will be flush with hundreds of
newly minted multimillionaires. Whether or not you agree that Facebook is worth $100
billion, the event itself illustrates American entrepreneurship at its most successful, as well as the salutary economic consequences that have made our country the largest economy in the world.
There are two major benefits to the upcoming IPO. On the highest level, it inspires innovation. Every young twenty-something sees the limitless possibilities of their own intelligence and sweat. Startups from Austin to Boston buckle down and work harder, eager to -- as Steve Jobs used to say -- “put a dent in the universe.” It is this mentality that drove the industrial revolution, invented modern physics, and will move our country’s economy to the next level.
On the smallest level, Mark Zuckerberg and his friends are going to be rich. These are the
people who will buy or build houses over the next five years. They will spend their money at restaurants, they will get their clothes dry-cleaned and they will reinvest in other startups or perhaps a small business. This is exactly what we mean when we talk about value creation. Like.