The Astonishing Success of the Wealthy at Accumulating More Wealth
Image by Morgan Housel.
As of July 15, 2024, the latest figures from the Bloomberg Billionaires Index shows that the wealth of the 10 wealthiest U.S. citizens continues to surge ahead–by over 24.5% during the first part of the year, an increase of $336.9 billion, bringing their total wealth to $1.71 trillion or $1,710 billion. The increase in their wealth ranges from a low of $17.6 billion for Warren Buffet to a high of $48.5 billion for Mark Zuckerberg.
The 11th wealthiest U.S. citizen, Jensen Huang, the CEO of Nvidia, has seen his wealth grow in 2024 by $68.7 billion to $113 billion, more than double what it was at the end of 2023.
How have the current wealthiest ten fared during Biden’s presidency? In the beginning of 2021, shortly before Biden was sworn in, according to the Bloomberg Billionaires Index, the size of their wealth came to $1,046 billion. Since then, it has increased 63.4% or by $664 billion despite declining $460 billion in 2022. Here are the Bloomberg figures for those who are currently the 10 wealthiest.
Much of the increase is a result of the upward movement in stock prices. Below are three examples of changes so far in 2024 in the price per share of the stocks that are associated with some of the wealthiest people, Zuckerberg, Gates and Balmer, and Ellison:
Unlike the stocks listed above as well as Amazon, Alphabet, Berkshire Hathaway and Dell, the price of a share of Tesla stock has increased little since selling for $250.08 at the start of the year. It closed on July 15 at $252.64 after sinking to $140.56 in April. Presumably, the increase in Musk’s wealth of $37.7 billion so far this year is largely a result of his pay package of $45 billion approved by Tesla shareholders.
The Size of Their Wealth
Some examples that illustrate the size of the wealth of the obscenely wealthy:
Musk has plans to provide a pro-Trump Super Pac $45 million per month. In the next five months, that comes to $225 million which is 0.0843% of his wealth. For a person with wealth holdings of $10,000, that percent of their wealth comes to the grand sum of 8.43 cents.
Were Musk to give $5,000 to every person who is considered by the government to be poor (approximately 38 million people), he’d still have $77 billion.
Were he to give every homeless person (approximately 650,000 people) $100,000, he’d be left with over $200 billion.
Despite the supposedly healthy economy, the California budget deficit of a claimed $44.9 billion for the upcoming year is resulting in the state government, dominated by members of the Democratic Party, making cuts to many vital programs. That deficit amount is less than the $48.5 billion increase, so far this year, in the wealth of California resident Mark Zuckerberg. Were he to be forced to or volunteered to fully finance the deficit, the “poor” guy would end up with only a mere $132 billion.
From all appearances, the economy has surely been working well for our wealthiest colleagues. If that outcome does not smell right, you are not alone in experiencing a foul odor being registered in your brain.
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