The rich are getting poorer and losing $1 trillion this year: Bloomberg

  • A Bloomberg report revealed that the world’s 500 richest people have collectively lost $1 trillion this year.
  • This is because stocks have fallen.
  • In contrast, the lowest paid Americans are seeing their wages increase at a steady pace.

Americans don’t feel very good about the economy.

Inflation is high and the markets don’t seem too hot. As stocks have plunged this week,

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of a bunch of wealthy people, who tend to have their wealth parked in assets. Indeed, Joe Weisenthal of Bloomberg reports that the 500 richest people in the world have lost more than $1 trillion this year.

As Weisenthal notes, this creates an interesting contrast between two very disparate types of people in the U.S. economy: those who compete for jobs and see hourly wages soar — and those whose net worth comes from assets.

For example, as crypto takes a major hit, Bloomberg reported that Coinbase founder Brian Armstrong saw his net worth drop from $8 billion in March to just $2.2 billion. It’s not just Armstrong: Bloomberg discovered that Binance CEO Changpeng Zhao saw his net worth jump from $96 billion in January to $11.6 billion.

The cumulative loss of $1 trillion still leaves plenty for the ultra-rich. During the pandemic, America’s — and the world’s — wealthiest people have made huge gains. An Oxfam dossier revealed that, from March 2020 to March 2022, the wealth of American billionaires increased by 62%, taking their net worth to $4.7 trillion. Another Oxfam report found that the world’s 10 richest men more than doubled their cumulative wealth from March 2020 to November 2021, increasing their collective net worth by $700 billion to $1.5 trillion. At this rate, they were making $15,000 per second.

Technician salaries are a good example of where these losses are felt, even among those not at the top. As Insider’s Kylie Robison reports, high-paying Big Tech companies often try to entice workers with equity. Their offer letters don’t just have a paycheck, but what’s called “restricted stock units,” offering stock to employees pegged to the stock’s market price on the day it’s distributed. . This has led many of these workers to see their pay drop significantly.

These losses probably don’t weigh as much on the richer wallets of the wealthy, but they do represent a slightly different trend in who is making the most money. Wages have skyrocketed over the past year as workers quit and switch jobs at record rates – and employers must try to find a way to lure them back.

According to the Bureau of Labor Statistics, the average hourly wage increased 5.5% from April 2021 to April 2022. Americans now earn on average nearly $32 per hour.

Of course, much of these wage gains are still being eaten up by inflation. The most recent consumer price index data showed inflation rose 8.3% year-on-year in April – and that’s a slowdown.

But some of the lowest-paid workers have seen wage gains outpace inflation, as Insider’s Ben Winck and Madison Hoff report. Adjusting for inflation, recreation and hospitality workers have seen their real wages increase by 4.2% since January 2021.

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The Bank of Atlanta Salary Tracker shows that the lowest-paid quartile of workers has seen wages rise 6.4% over the past year, far more than other quartiles.

So in this market madness there is yet another upside down trend: the richer are getting less rich.

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