This is an agelong question. How is it that a certain sect of society benefits from those who are disadvantaged? As the world around us crumbles, the rich get richer during the Coronavirus outbreak. Billionaires around the world are seemingly benefitting from the situation, amassing unprecedented wealth. It is reported that America’s billionaires amassed an enormous $282 Billion in just 23 days. This is during a quarter in which the economy is supposed to “contract” by 40 percent. In this article, we will explore how exactly the rich are getting richer and the poor are suffering during a supposed financial crisis.
Having Friends (and investments) in Higher places helps
Billionaires and millionaires spend fortunes to keep their wealth safe. With an army of lawyers, judges, and politicians in their pockets, the rich even have a say in legislative and executive matters. This influence extends worldwide, with investments in companies around the globe. This allows them to have laws and legislation passed that eventually benefit them. For example, governments are passing laws for tax exemptions and trade grants, laws which these billionaires are taking full advantage of. Furthermore, their investments are so diverse and plentiful that even if one or a few of their businesses close, they have other sources to make up for it.
Increase in demand for their company’s products/services
There is no better example of this than Amazon. Their CEO Jeff Bezos made a staggering $25 Billion in the first few months of 2020, seeing the company’s stock rose by 30%. This led to CNN claiming it might be the “ultimate coronavirus-proof stock”. This surge in their stock is due to the global lockdown in place. Being unable to leave their homes, people are resorting to online shopping and trading. Amazon, being a market leader in that regard, has taken full advantage.
Tax havens and Low Wages
How do the rich maintain their wealth? Hiding money in tax havens and supposed charities, they get away with a lot. By donating a fraction of their wealth to charities, they gain publicity. Other than that, they rarely share any of their wealth with their employees. Amazon staff, working on the field, risking their lives, barely get any money while their owner gets wealthier. This is how the rich get richer, while the poor get exploited to make that possible.
While the coronavirus has been cruel to most, some have actually thrived. The rich get richer during this pandemic as the world crumbles around them. It is their duty to contribute their wealth towards fighting the virus, so the world can resume back to normalcy.