CAN BILLIONAIRES STOP THE CORONAVIRUS?
The Business Update with Vivian Benishek
Wednesday, May 6, 2020
The Clash of Cash and Coronavirus
“I spy with my little eye, something beginning with the letter B.” No, it’s not a ball, blanket, butterfly or book. Look a little closer and soon you’ll be asking “Where are the billionaires in all of this?” Where do we find this highly selective group of financial influencers during this crisis? Amidst the tragedy of COVID-19, some billionaires have gained tremendous profit from a pandemic that has financially strained families and communities worldwide. Some of the wealthiest people on Earth have altered their companies through good intentions to focus on testing kit production and medical equipment manufacturing. However, these virtuous deeds are still outweighed by the global financial inequality between the rich and poor. According to a study conducted by the Institute for Policy Studies, billionaire wealth in the United States has collectively increased by $238 billion, a 10 percent gain, from March 18 to April 10, at a time when nearly 22 million Americans were losing their jobs and struggling for financial support. In fact, the data also reveals how hotshot celebrities such as Jeff Bezos and Elon Musk have each gained more than $1 billion in additional wealth since January 1, 2020. Although these statistics may appear shocking, they shouldn’t really come as a big surprise.
Throughout the past couple months of quarantine, while small businesses are gasping for air in the turbulent waters of a tanking economy, some big-box retailers like Target and Wal-Mart are powering through and crushing all signs of competition. While many stores like J. Crew and True Religion have filed for bankruptcy, a recent surge in online shopping, specifically in the apparel and grocery industries, has created a pocket for profit. It’s truly no surprise that Amazon has been declared as a “winner” amidst the coronavirus outbreak — their overall revenue increased to $75.4 billion, up 26 percent from the same time last year. With businesses and organizations across the United States communicating via video call, Zoom CEO Eric Yuan and Steve Ballmer have risen as a powerful duo of “pandemic profiteers.” The average stock share price of Zoom Video Communications Inc. on NASDAQ is set at $150 as of May 6, 2020. That’s a significant price jump from when it started around $70 in January of this year. But when will enough be enough? According to Impact 2020, the coronavirus stimulus law has a tax change just for millionaires, which shows that those who earn more than $1 million a year could save a combined $70 billion in taxes because of this pandemic. At this point in the game, I believe Congress must continue to ensure fair financial distribution and impose more restrictions on the rich in times of crisis.
In the business world, stories of triumph and tragedy are as familiar as the ABC’s. While a great portion of America scrambles for food, money and shelter, the majority of billionaires are on the hunt for any opportunity to expand their profits. And while many in the top 1 percent are getting richer by the minute, 78 percent of Americans are still living paycheck-to-paycheck during the coronavirus pandemic. Here, the numbers don’t lie. They speak the truth behind the scary realities of the divide between the upper and working classes. Despite these unprecedented and chaotic times, the old aphorism “the rich get richer and the poor get poorer” still rings louder than ever.
That’s it for this briefing. See you next time!
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