US Billionaires Increased Their Wealth by $1 Billion Despite the COVID-19 Crisis

by Kwon Jaehee

Published 26 Apr.2020 09:58(KST)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Amid the global economic contraction caused by the COVID-19 pandemic, some wealthy individuals have notably increased their fortunes despite the crisis. A prime example is Jeff Bezos, CEO of Amazon, whose assets have surged significantly due to the sharp rise in online shopping demand driven by social distancing measures.

According to the Institute for Policy Studies (IPS), a leading progressive think tank in the United States, Bezos' assets have increased by $24 billion (approximately 30 trillion KRW) just this year. The surge in online shopping demand due to COVID-19 caused Amazon's stock price to soar. Bezos holds a 15% stake in Amazon, and the company's stock price has risen 31% since the beginning of this year.

Zoom, which provides online video conferencing services, also benefited from the COVID-19 boom. As of April 21, more than 300 million people worldwide were using Zoom services. This number was around 200 million on April 1, meaning an increase of 100 million users in just about 20 days. Consequently, Zoom's stock price has more than doubled this year, currently reaching $158.8. Zoom founder Eric Yuan's wealth has also increased accordingly, now valued at $7.8 billion (approximately 9.6 trillion KRW), more than doubling.

The Walton couple, co-founders of the major U.S. retailer Walmart, also saw their net worth increase by 5% amid the COVID-19 crisis. Their combined assets amount to $169 billion (approximately 206 trillion KRW), placing them among the world's wealthiest individuals.

Elon Musk, founder and CEO of Tesla, has also seen his wealth grow significantly this year as Tesla's stock price surged 73%. Musk owns 18.5% of Tesla's shares.

IPS warned of "wealth inequality," noting that while billionaires like Bezos and Musk have seen their assets increase substantially, the wealth of ordinary Americans has stagnated for 30 years.

IPS pointed out, "Although a wave of layoffs has swept across the U.S. in the past four weeks, the net worth of 34 billionaires, including Bezos, has increased by tens of millions of dollars during the same period. This is extremely unfair." The net worth of eight billionaires, including Bezos, Musk, and Eric Yuan, has increased by over $1 billion just this year.

Over the past decade, the average asset growth rate of U.S. billionaires has reached 80.6%, even after adjusting for inflation.

Meanwhile, according to the U.S. Federal Reserve (Fed), the average household wealth in the U.S. was $107,618 (approximately 130 million KRW) in 2016, showing little change from $101,829 (approximately 125 million KRW) in 1989.