Facebook Hit a Mind-Boggling Milestone This Week
You know what’s cooler than having hundreds of millions of people use your product every day? Having a billion people use it in one day.
That’s what happened for Facebook for the first time on Monday when more than a billion people logged on to the social network, according to a post on CEO Mark Zuckerberg’s page. That’s one in seven people worldwide.
That means that a billion people potentially saw the ads that help generate the revenue that has powered Facebook’s growth. In particular, Facebook has been at the forefront of the shift toward earning ad dollars via online video, the fastest-growing digital advertising category.
Related: Will Facebook Kill the News Media or Save It?
Zuckerberg didn’t mention revenue in his post. Instead, he wrote that he is proud of the community built by the social network and said that connecting the world is making it a better place. “It brings stronger relationships with those you love, a stronger economy with more opportunities, and a stronger society that reflects all of our values.”
The milestone comes as the social network has been moving aggressively to monitor user habits and expand its product offerings to include instant messaging, photo-sharing and now a new virtual assistant. It has also explored moving into the e-wallet space and is reportedly looking into developing a credit rating system based on a user’s network.
While a billion users a day is nothing to scoff at, the company—as always—is dreaming bigger. Last month, Facebook finished construction of a drone that it hopes will provide Internet access to remote parts of the world. That way everyone everywhere can be wished a “Happy Birthday” by 300 people they haven’t spoken to in years.
Tweet of the Day: The Black Hole of Big Pharma
Billionaire John D. Arnold, a former energy trader and hedge fund manager turned philanthropist with a focus on health care, says Big Pharma appears to have a powerful hold on members of Congress.
Arnold pointed out that PhRMA, the main pharmaceutical industry lobbying group, had revenues of $459 million in 2018, and that total lobbying on behalf of the sector probably came to about $1 billion last year. “I guess $1 bil each year is an intractable force in our political system,” he concluded.
Warren’s Taxes Could Add Up to More Than 100%
The Wall Street Journal’s Richard Rubin says Elizabeth Warren’s proposed taxes could claim more than 100% of income for some wealthy investors. Here’s an example Rubin discussed Friday:
“Consider a billionaire with a $1,000 investment who earns a 6% return, or $60, received as a capital gain, dividend or interest. If all of Ms. Warren’s taxes are implemented, he could owe 58.2% of that, or $35 in federal tax. Plus, his entire investment would incur a 6% wealth tax, i.e., at least $60. The result: taxes as high as $95 on income of $60 for a combined tax rate of 158%.”
In Rubin’s back-of-the-envelope analysis, an investor worth $2 billion would need to achieve a return of more than 10% in order to see any net gain after taxes. Rubin notes that actual tax bills would likely vary considerably depending on things like location, rates of return, and as-yet-undefined policy details. But tax rates exceeding 100% would not be unusual, especially for billionaires.
Biden Proposes $1.3 Trillion Infrastructure Plan
Joe Biden on Thursday put out a $1.3 trillion infrastructure proposal. The 10-year “Plan to Invest in Middle Class Competitiveness” calls for investments to revitalize the nation’s roads, highways and bridges, speed the adoption of electric vehicles, launch a “second great railroad revolution” and make U.S. airports the best in the world.
“The infrastructure plan Joe Biden released Thursday morning is heavy on high-speed rail, transit, biking and other items that Barack Obama championed during his presidency — along with a complete lack of specifics on how he plans to pay for it all,” Politico’s Tanya Snyder wrote. Biden’s campaign site says that every cent of the $1.3 trillion would be paid for by reversing the 2017 corporate tax cuts, closing tax loopholes, cracking down on tax evasion and ending fossil-fuel subsidies.
Read more about Biden’s plan at Politico.
Number of the Day: 18 Million
There were 18 million military veterans in the United States in 2018, according to the Census Bureau. That figure includes 485,000 World War II vets, 1.3 million who served in the Korean War, 6.4 million from the Vietnam War era, 3.8 million from the first Gulf War and another 3.8 million since 9/11. We join with the rest of the country today in thanking them for their service.
Chart of the Day: Dem Candidates Face Their Own Tax Plans
Democratic presidential candidates are proposing a variety of new taxes to pay for their preferred social programs. Bloomberg’s Laura Davison and Misyrlena Egkolfopoulou took a look at how the top four candidates would fare under their own tax proposals.
