Why billionaires got even richer in the last week of August

Last week, the richest 500 people on the planet raised $ 209 billion. One of the most lucrative weeks in history? Answers with specialists in the economy.

Are inequalities widening even more? This is what the economic media Bloomberg announces.

According to an August 29 article on Bloomberg, the week of August 24-30 was one of the most lucrative for the wealthiest people on the planet.
209 billion dollars is the sum that would have earned the 500 richest people in the world in one week, or a little more than 175 billion euros. Something to make your head spin.

Take it with a grain of salt

But does this figure reflect reality? “Not at all”, replies Christophe Blot, an economist specializing in monetary policy. “Certainly, in recent years, the inequalities between the richest and the poorest have been growing. But in the case of the greatest fortunes, they fluctuate every day, and that inevitably makes differences, but which mean nothing,” adds Louis Maurin, director of the independent organization the Observatory of inequalities.

But why are the rich even more so? “What matters a lot is the value of assets. Real estate, for example. Their price increases more and more, and the wealth of the richest necessarily increases. On the other hand, with the rise in asset prices, interest rates are lower, so it is easier to acquire assets,” explains Christophe Blot.

In fact, the more the price of goods will rise, the more interest rates will fall.

Growing inequalities

And inequalities are undeniably widening explains Louis Maurin: “We recently released a study which explains that with his fortune, Bernard Arnault, the richest Frenchman, can buy all the real estate in the city of Toulouse. For an example in the west, Gérard Mulliez, owner of the Auchan group, could buy all the housing in the city of Rennes. “

A striking observation, when we know that with the health crisis of the coronavirus, many families find themselves in financial difficulty.

Next to that, stock prices are “at levels never reached”, according to Christophe Blot. Another example, last week, Jeff Bezos, the richest man on the planet was even more rich, because the owner of Amazon became the first man to exceed the 200 billion dollars of fortune.

Elon Musk, he became after Jeff Bezos, Bill Gates, and Mark Zuckerberg last month, the fourth man to more than 100 billion dollars of fortune, with a stock of his company Tesla which does not cease climbing on the stock market. Apparently, the health crisis does not affect the richest.