Why do billionaires get more prosperous during the covid-19 pandemic? This puzzle needs to be solved because billionaires are getting richer every day, unlike everyone worldwide. COVID-19 has been one of the most significant pandemics in the world. It has dramatically affected the world’s economy since normal activities have not been smooth. The lives of middle to low-class people have become more problematic in the last few months due to the economy’s fall.
It is, however, different for the rich people in the globe. To solve the riddle, there have to be ways in which these billionaires make more money, unlike anyone else when the economy is falling. The solution to the puzzle is that the world’s great billionaires have become more prosperous due to the stock market and their association with great companies and corporations.
Reports show that world billionaires greatly benefit from betting on the stock market’s recovery. During March and April; when the pandemic was noticed globally. At this point, the global stock market had fallen to its lowest point. The billionaires took advantage of the situation and betted on the stocks (Neate, 2020). It is clear that billionaires have done well during the pandemic; they have gained a lot from the stock market.
When equity markets were falling, the aggressive billionaires bought more company shares hence more possession of shares which benefitted them when the market returned to its feet. An example of beneficial shares is technology company shares rising sharply (Neate, 2020). Billionaires have a risk appetite and are confident to gamble large amounts of money with the hope of receiving even more significant amounts. Therefore, the stock market has greatly benefited the world’s top billionaires.
Some billionaires greatly benefit from their companies because they are booming during the pandemic. Examples of booming businesses include technology, space sectors, batteries, and automotive (Berkhout, Galasso, Lawson, Morales, Taneja, & Diego Pimentel, 2021, P.22). Elon Musk, active in the space sector, has increased his net wealth by $128.9 billion (Berkhout et al., 2021). Jeff Bezos, the owner of Amazon, has also increased his net worth by $78.2 billion (Berkhout et al., 2021).
The skyrocketing of his wealth is due to increased homebound customers. People have greatly depended on online shopping, delivery of groceries and streaming during this pandemic. Eric Yuan and Steve Ballmer are the other billionaires that have become richer due to the pandemic. They own Zoom and Microsoft, respectively; they have benefited from the boom in videoconferencing (Berkhout et al., 2021). These companies are known and used worldwide hence the incredible profits.
The ten wealthiest billionaires in the world have seen their wealth increase by $540 billion during the covid-19 pandemic. Some billionaires have also benefited from being shareholders in the world’s largest corporations. These corporations have made many profits during the pandemic, and as a result, the billionaires have benefited from the profits (Berkhout, Galasso, Lawson, Morales, Taneja, & Diego Pimentel, 2021, P.22). Therefore, it is clear that solid companies and corporations have helped most billionaires by increasing self-net worth.
The world’s wealthiest people have greatly benefited from the covid-19 pandemic. Unlike the middle and low-class people, many of the world’s population has suffered negatively due to the pandemic, but it is not the same case. Two things have helped them accumulate extra wealth, the stock market and companies booming during the pandemic, such as Amazon and Zoom. The billionaires’ aggressiveness is what is benefiting them most importantly.
References
Berkhout E., Galasso N., Lawson M., Morales P. A. R., Taneja A., and Pimentel D.A. (2021). The Inequality Virus. Oxfam International. 1-83.
Neate R. (2020). Billionaires’ wealth Rises to $10.2 Trillion Amid Covid Crisis. The guardian. Web.