What economic crisis? The 500 wealthiest people in the world are $852 billion richer this...

[midian182]

Editor's take: It's a time of economic uncertainty, rising living costs, and mass job layoffs. People are worried – unless they're billionaires, of course, the richest of whom have been earning an average of $14 million per day over the past six months thanks to a broad market rally.

Bloomberg writes that the world's 500 richest people added $852 billion - or about $14 million each day - to their already vast fortunes across the first half of 2023. It marks the best half-year for billionaires since the second half of 2020 when the economy saw a rebound following the global crash caused by the pandemic.

Central bank interest rate hikes and the ongoing war in Ukraine have been two big factors impacting the economy in recent times. We've also seen a number of tech companies that over-hired during Covid times lay off thousands of employees. Despite this, however, the S&P 500, which tracks the stock performance of the 500 largest companies on the stock exchange, is up around 16.5%.

"I got into tech to make a difference"

Tech companies have seen their stocks explode this year thanks to the artificial intelligence revolution. Nvidia's stock, for example, has risen over 187% in 2023, pushing its market cap above $1 trillion. The result is the Nasdaq 100 increasing 31% – its best-ever first half.

This is all good news for Elon Musk. The world's richest person has added another $96.6 billion to his net worth this year through June 30, pushing his total wealth to $237 billion – the same GDP as Belgium. Mark Zuckerberg added $58.9 billion during that period, thanks to Meta Platform's stock rising almost 80%. Jeff Bezos made $47.4 billion, while Larry Ellison generated $40.8 billion.

Not every member of the super wealthy has seen their fortunes increase since January. Indian billionaire Gautam Adani, chairman of Adani Group, lost $60.2 billion, including $20.8 billion in a single day. His losses can be attributed to short-seller Hindenburg Research accusing Adani Group of accounting fraud and stock manipulation, which Adani denies. He's still worth $51.5 billion, so don't feel too bad for the guy.

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https://www.techspot.com/news/99283-what-economic-uncertainty-500-wealthiest-people-world-852.html

 

[wiyosaya]

Next in the news: Musk buys Belgium.

 

[Dimitriid]

The issue isn't that they're richer during a recession (Even if nobody is willing to call it such). The issue is that nobody understand this is the free market working as designed: periods of economic downturn only ever affect anybody below the billionaire line. When it comes to billionaires does it really matter if your 120 billion suddenly are worth the equivalent of 12 billion if you can still buy out all real estate, businesses, etc. Going out of business for a few hundred million each and once the economy picks back up you're now worth 300 billion instead?

Because that's exactly what happens every single time: You don't need to get into conspiracy theories (That honestly are almost always at the very least, directly adjacent to antisemitism) about banking institutions or shadowy groups fabricating an economic downturn. However it happens for whatever reason, truth is that the people with the most money and only them stand to come out on top far richer as a direct result.

 

[wiyosaya]

The issue isn't that they're richer during a recession (Even if nobody is willing to call it such). The issue is that nobody understand this is the free market working as designed: periods of economic downturn only ever affect anybody below the billionaire line. When it comes to billionaires does it really matter if your 120 billion suddenly are worth the equivalent of 12 billion if you can still buy out all real estate, businesses, etc. Going out of business for a few hundred million each and once the economy picks back up you're now worth 300 billion instead?

Because that's exactly what happens every single time: You don't need to get into conspiracy theories (That honestly are almost always at the very least, directly adjacent to antisemitism) about banking institutions or shadowy groups fabricating an economic downturn. However it happens for whatever reason, truth is that the people with the most money and only them stand to come out on top far richer as a direct result.

I agree that the system worked as designed - not that I am a fan of the current system since it has lead to significant inequity in the world.

However, IMO, the best thing, and only thing to do, if you do have investments, is to sit on them during a down turn. The market eventually comes back up after a downturn, and selling at what might be a market low price is not the way to build a resilient investment portfolio. Selling any investment during such a downturn is likely to cause anyone to lose money, while holding onto your investments, they may very well be worth more after the market rebounds - thus allowing anyone to "reap the profits". This is common advice from investment advisors, and I have personally found it to be sound advice. While this issue may be different than the sheer volume of wealth that billionaires like Musk and others have, I see it as a strategy that allows any investor, with some level of an investment portfolio, to gain rewards of an economic downturn.

 

[scavengerspc]

Even as a dedicated Capitalist, I can see how the asinine tax cuts had their effect.
An upper level fair tax structure would provide balance.

 

[m3tavision]

All you have to do is make sure those Billions aren't sitting... and actually flowing. That means eliminate the tax shelters exclusive for the ultra wealthy, that they hide behind.

Most investment funds produce hope... not a tangible product.

 

[sorten]

Economic crisis? Where do you live? Unemployment is at an historically low rate and holding steady.

https://www.bls.gov/charts/employment-situation/civilian-unemployment.htm

And the stock market is having a good year: S&P500: +16.5%, Nasdaq: +33%.

Of course, depending on your race, profession, education level, and where you live, the picture can be very different. But nobody should be surprised by billionaires profiting.

 

[shark975]

Ahh socialism and environmental regulations. making the rich get richer

 

[godrilla]

No mention of Jensen Huang who has his net worth almost quadrupled within one quarter.


https://www.bloomberg.com/billionaires/profiles/jenhsun-huang/

 

[Stiqy]

I agree that the system worked as designed - not that I am a fan of the current system since it has lead to significant inequity in the world.

However, IMO, the best thing, and only thing to do, if you do have investments, is to sit on them during a down turn. The market eventually comes back up after a downturn, and selling at what might be a market low price is not the way to build a resilient investment portfolio. Selling any investment during such a downturn is likely to cause anyone to lose money, while holding onto your investments, they may very well be worth more after the market rebounds - thus allowing anyone to "reap the profits". This is common advice from investment advisors, and I have personally found it to be sound advice. While this issue may be different than the sheer volume of wealth that billionaires like Musk and others have, I see it as a strategy that allows any investor, with some level of an investment portfolio, to gain rewards of an economic downturn.

Agreeing with you: wealthy people are better at managing money and understanding how investments and the economy work than less wealthy or poor people are. It's virtually a tautology. The reason they are wealthy is because they are better at managing wealth than other people. If they were bad at managing wealth, they wouldn't have it. (how many athletes and one-hit musicians with multi-million dollar paydays have filed for bankruptcy or are selling real estate to get by after their short careers are over? --- lots)

The wealthy who have built their wealth from managing lesser wealth don't sell in downturns (or don't have to), they invest and buy at the right times. They have put themselves, or been put in a position to play the wealth game better than everyone else, but they also actually play the game better too - if they didn't they would be unknown or forgotten as bankrupts, not constantly climbing the wealth charts.

The better they get, the bigger the numbers get. Lots of people, tens of millions of them, increased their net worth by 13% in the past year, same as Musk did... its just that their 13% isn't 110 billion.

 

[axiomatic13]

Even as a dedicated Capitalist, I can see how the asinine tax cuts had their effect.
An upper level fair tax structure would provide balance.

Says the guy with the avatar picture of who set up all those tax breaks for the uber-rich.

 

[godrilla]

Says the guy with the avatar picture of who set up all those tax breaks for the uber-rich.

Would you rather the poor get out of poverty and the rich will normally get more wealthy or would you rather the rich get ultra uber super duper rich and poverty will rise as well? I personally rather people get out of poverty, I can care less if the uber rich get more wealthy.

Redirect Notice

Hence the timeline.

 

[zanic]

Put a cap on wealth, like in sports with salary caps.

 

[scavengerspc]

Says the guy with the avatar picture of who set up all those tax breaks for the uber-rich.

Man, did you miss the boat on me and my comment. The avatar proudly proclaims "Trump Indicted". And so do I.

And yes, everyone knows it was tRUMP that put those cuts in place and caused the national debt to jump higher in 4 years than the previous 247 (except Civil war and WW2) years combined.

 

[Underdog]

So the rich, mega rich, and humungously rich will be even richer at the end. Fair enough. But what about the billions of other humans on the earth that are so poor they have no "investments" to hang on to until this all blows over?
A very high percentage of people are living hand to mouth and haven't a penny left after feeding their family to invest. Every day on TV I see charities begging for donations to buy pumps and equipment so children don't have to die from drinking polluted water, or go blind from eye diseases that could be easily cured if money was available. Then later I read about the man at the top throwing obscene amounts of cash on his own personal space program. Daily we are bombarded with media brainwash about how "we" are killing the planet unless we consume less energy, eat less or no meat, cut our miserable existence back to 19th century levels and expect to be growing our own food while others take dirt cheap flights to other countries for their ever so necessary holidays to reward themselves for the tedium of their sad working class lives without a thought for the emissions of the aircraft they use.
The system sucks, bigtime. Way past time for a big fundamental change.

 

[Gasuin]

Next in the news: Musk buys Belgium.

Is this some meme/joke? I dont get it. Explain pls.

 

[Srksi]

Cant wait more moment when we start to building pyramids 2.0

 

[loki1944]

And they'll all die like the poorest pauper in the end.

 

[Jroc187]

All you have to do is make sure those Billions aren't sitting... and actually flowing. That means eliminate the tax shelters exclusive for the ultra wealthy, that they hide behind.

Most investment funds produce hope... not a tangible product.

My portfolio is up 55% this year from last year which is about a 1.6 million increase in my net worth from last year. I actually don't have millions sitting in the bank and these people do not have billions sitting in a bank. but for some reason these bullshit articles make it sound like these guys have billions falling from the sky into their bank accounts.

 

[kiwigraeme]

Economic crisis? Where do you live? Unemployment is at an historically low rate and holding steady.

https://www.bls.gov/charts/employment-situation/civilian-unemployment.htm

And the stock market is having a good year: S&P500: +16.5%, Nasdaq: +33%.

Of course, depending on your race, profession, education level, and where you live, the picture can be very different. But nobody should be surprised by billionaires profiting.

oh yes the trickle down theory when the super rich bribe politicians and supreme court judges to tax them less to socialise their costs like destroying peoples health , land and water
yes the markets are good for pension funds - yes full employment means it slightly harder to exploit workers.

But even the middle-class is doing it tough in many countries - Americans afraid to call an ambulance
There is a reason why Scandinavian countries are happier.
You think the rich won't replace people with a machine/robot
Most super rich started rich - It's becoming harder for poor to become rich and rich to become poor - If Trump had just invested Daddy's money he would be much richer

What gives the rich the right to burn and pollute mega amounts of the world resources - or own say 90% plus of the worlds private land in many countries . It's all built on a big house of cards - When in 30 years climate change is really wrecking damage - do you think the average joe will care about their rights .
If times past you had to BS you were a emperor god, or controlled access to divine favours - or a ruthless king , warlord .
You travel with Zuck to a huge Mansion on Mars with 98 others - cut off from earth - he says you 99 can only use 3% of the mansion for the rest of your lives - None of you would put up with it.

It's all a con-job built on corruption ( yes an exaggeration ) - it only holds and we think riots and anarchy are worse and we have been brainwashed - rich are not better , less evil , devine , more deserving - yes you can hold up people who made something of their lives and well deserve their rewards - But the mega rich know the deck is stacked in their favour
Plenty of times in history the rich have been stripped of the largess and excesses and people were better off .

The powerful pit poor against poor

anyway blah blah over - we do have to find a better way - not sure what
But we the people have the power to strip the rich of everything through democracy
Not let them control our water , our air , our movement etc

Selling the BS if you just worked harder , smarter you would be rich too - is as much BS as a Ponzi scheme - MLM etc .
Some of those super rich were immoral - asset strippers , pension fund raiders , mass firing and rehires at lower rates , exporting jobs - ill gotten state funding etc
Some real estate investing gangs target older vulnerable people like packs of sharks -all telling them their house is worth not much - before the chosen moves in for the kill
Corps can kill/maim thousands with no one doing jail time ( endless exmaples )

 

[EdmondRC]

Crony Capitalism, politicians and business leaders in bed with each other and basically ravishing the middle class while they take trips to their pedo islands. Is to blame for this.

 

[EdmondRC]

Put a cap on wealth, like in sports with salary caps.

No, just stop crony capitalism. We have separation of church and state, time for separation of business and state. Make any and all favoritism, lobbying, and exchanges between businesses and politicians illegal and actually enforce it. Problem is, the corruption is so deep that it would take a revolution at this point.

 

[EdmondRC]

Even as a dedicated Capitalist, I can see how the asinine tax cuts had their effect.
An upper level fair tax structure would provide balance.

Taxes could be a lot lower. Federal workers make way to much money. One of the most expensive areas of the country to live in is the DC metro area. It also has one of the highest median incomes in the country.
But that's not the main problem, the main issue is Crony Capitalism. These companies get what they want because they make the politicians very wealthy. One only has to look at big phrama to realize that the government plays favorites. Nearly all politicians are much wealthier than their average constituent and much wealthier than the national average. The entire system is so corrupt and believe me, the elites will not give up their advantages for anything. Meanwhile they will whine about privilege, but in reality, they just want us fighting over the scraps to keep us under control. It's disgusting what this county and the entire Western World have become.

 

[Aranarth]

I agree that the system worked as designed - not that I am a fan of the current system since it has lead to significant inequity in the world.

FIRST - note that all systems that use money or capital as their means of exchange of investment are capitalism therefore even Marxism and socialism are also forms of capitalism. (The only system that is not capitalism would be barter.)

Second - Free market capitalism and its introduction into locations where such inequalities exist because of Marxism, Socialism, or feudalism has done MORE to lift people out of poverty than ANY OTHER SYSTEM the world has ever seen!

Third - the problem is that where huge disparities exist the cause is that the system is NOT "free-market" nor "free-enterprise" capitalism.

The problem with calling everything that you currently see that is corrupt as "capitalism" is that you are not defining the TYPE of capitalism you see. Most of what you call "capitalism" is actually oligarchy.
This lack of understanding can be laid at the feet of many different institutions such as high-school, colleges, and news outlets.

 

[toooooot]

I am happy for them. The only thing I care is that they pay taxes, and that places they use to hide money at sink with all the banks underwater.