How Carvana Makes Everyone Poorer

The previous post described how the neoliberal scam makes everyone poorer. Here's a more concrete example: Carvana.

Carvana has a lot of  Wall Street funny money. Their business: buying and selling used cars. It's a financialized wall street version of a corner car lot.

Carvana looses oodles of money, but its executives make a mint. They pocket about $3M in compensation when the average employee makes $30,000-ish. The BOD of Carvana pockets about $400,000 per year for scratching their asses.

All the wall street funny money went into buying used car inventory. Now a beater car costs $5000 instead of $1000. I saw a craigslist post advertising the same type of truck I paid $1500 for five years ago for $7500.

The executives get rich. The wall street bankers who loaned them money and underwrote their stock sales get rich. Everyone else gets shafted by devaluing the currency. Nothing of value was created by that enterprise. It really just shifted some energy and production to a handful of people.

Carvana will probably be bankrupt before the year is over.