Extreme Wealth in Perspective - Uncommon Thought Journal

Extreme Wealth in Perspective

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By Rowan Wolf

The Guardian informs us that 314 of Forbes richest 400 people in the US lost $300 billion in the past year. I guess a takeaway might be that everybody has gotten hurt in the economic collapse. We could also say, "Gosh! Look how much money the richest folks have lost." Well, don't start taking donations for these poverty stricken billionaires yet.

According to the article:

1 Bill Gates, $50bn, down $7bn 2 Warren Buffett, $40bn, down $10bn 3 Lawrence Ellison, $27bn, unchanged 4 Christy Walton and family, Wal-Mart, $21.5bn, down $1.7bn 5 Jim Walton, Wal-Mart, $19.6bn, down $3.8bn

So after losses the five richest folks still had a combined wealth of $158.1 billion.

In trying to put such wealth and loss of wealth in perspective, I tried to find a comparison point. I decided to look at the budget of my state of residence - Oregon. The 2009-2011 budget for the state of Oregon is roughly $132 billion - or $66 billion a year. So the state of Oregon could run for about 4.5 YEARS on the losses from those folks. Or looked at somewhat differently, The state of Oregon could run for over 2 years on the wealth of the 5 richest folks alone. All of the schools, the roads, the courts, parks, fisheries, social services and Oregon Health Plan - for 4.5 years on the wealth of FIVE people.

According to Forbes "Fun Billionaire Statistics," the combined net worth of the richest 400 Americans is $1.27 trillion. The per capita of the U.S. in 2008 was $26,964 according to the U.S. Census Bureau Table P-1. Of course that includes those richest 400 people (and their near neighbours).

There is a difference between losing a few billion and what is happening to millions of people in the country. The graphs below appeared in the NY Times

JobsGraphs.jpg

One of the interesting things in the graphs - aside from the fact we have 6 unemployed people for every job opening - is that for the entire period the number of unemployed exceeded the number of jobs.

An interesting read at Forbes is the 9/30/09 article by Keren Blankfeld "How Billionaires Control Our Lives."


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