The world in 2020 is dealing with the worst financial crisis ever. The Global Economy is on the verge of recession, and researchers say that this will be the worst recession the Global Economy has ever suffered. Many multinational companies are suffering from huge losses due to which they are laying off employees, and people are losing their jobs. Unemployment is breaking all previous records. People are suffering from financial crises all over the world. In times of this pandemic, when people are losing their jobs and are having different financial problems, how billionaires got richer intrigues everyone! America’s billionaires had become half a trillion richer during this pandemic, with an increase of almost 20% in their wealth, which is approximately $565 billion. Six billionaires, including Amazon’s Jeff Bezos, Tesla’s Elon Musk, and zoom’s Eric yuan, have recorded a $2 billion growth in their wealth during this pandemic. With the rich getting richer, the poor are getting poorer, as studies suggest that America’s racial wealth gap has also increased during this pandemic. A total of 42.6 million people have signed for unemployment benefits in America, which shows that wealth inequality is the highest in America.
Indian billionaire Mukesh Ambani is also in the race of getting richer during this pandemic. Ambani’s wealth increased to $74.5 billion during the pandemic, making him the world’s fifth-richest person. In Spite of many Indians suffering from financial problems, Ambani had made a lot of fortune that made him the richest in the whole Asia continent.
Reasons that are making these billionaires richer are:-
Closure Of Small Businesses : How Billionaires Got Richer
Due to this pandemic and lockdowns in different countries, small businesses are the ones who suffered the most. Being not able to deal with the financial crisis, many small businesses closed. Hundreds and thousands of small businesses close all over the country.
Closure of these small businesses gave the opportunity to the big multinational companies like Amazon, Reliance, etc. to capture their market share. This gave them the opportunity to make their supply chains stronger and gain more advantage over the customers in terms of pricing.
Reliance industries ltd launched its jio mart services during this pandemic in order to capture the retail market in India. They provide online services that are more convenient for a consumer during these Covid situations. Hence, it will affect local grocery stores, Kirana stores, etc., and they will find it difficult to compete in the market.
Craze For E-Vehicle : How Billionaires Got Richer
As we all know that the future is electric and self-driving cars, and the first company to supply self-driving cars to the market is Tesla so, you can imagine how much fortune the company is going to earn by selling these cars. Tesla has become a big name in the whole world in recent years.
So, in spite of this pandemic, people are still crazy about electric vehicles and are purchasing them in huge numbers. Tesla has seen a huge growth in sales of its cars in recent times. This has affected the stock market, which bought some fortune for its CEO Elon Musk and made him richer and wealthier during this pandemic.
Video Conferencing Platforms
This pandemic has bought a positive impact on video conferencing platforms. As countries are imposing lockdowns in their provinces, the need for video conferencing platforms is increasing. Companies are using these platforms to connect to their employees who are working from home, and the companies are conducting meetings through these platforms. Companies with global markets are taking the help of video conferencing platforms to get connected to their employees in different countries.
Governments of different countries are also taking the help of these platforms to conduct their meetings. The leaders of different countries are using these platforms to reach lower class people and migrant workers to encourage them to fight this pandemic. Schools are also using these platforms for their teachings.
With the growth of video conferencing platforms, the companies owning them are celebrating huge profits. EricYuan of zoom ( a video conferencing platform) has seen an increase of more than $2 billion in his wealth during this pandemic.
Microsoft, which holds two video conferencing platforms(Skype and Teams), has also gained a lot of revenue in this pandemic, Steve Balmer former Microsoft CEO has seen a $2.2 billion soar in his wealth recently.
Real Estate : How Billionaires Got Richer
Real estate is also one of the sectors which got benefited during this pandemic. It’s hard to say the reason behind that. Still, there are many real estate organizations who are providing office space to some of the tech giants, as tech giants have seen a soar in their profit earning in the past couple days this positive change is affecting the stocks of the real estate firms. They see an increase in their revenues.
John Albert Sobrato chairman of Sobrato Organizations has seen a tremendous increase in his wealth recently because his company is providing office spaces in the silicon valley to tech giants like Amazon, Google, Facebook, Netflix, and Apple.
Even if the schools and colleges are teaching online through video conferencing platforms, there are a lot of courses whose institutions are closed; therefore, the students prefer online education platforms such as Byju’s, Uacademy, etc.
Many sites provide online courses in digital marketing, advanced excel courses, and financial analyst courses that people prefer to pay for. Even jio has started an online education platform of his own
This growth is showing a good time to the stockholders of these companies and making their fortune wealthier.
OTT platforms like Netflix, Amazon Prime, etc. have seen a hype in this pandemic. More people are subscribing to their platforms in order to spend there not-much-to-do time watching some great content.
During this pandemic, Hotstar partnered with Disney to launch disney+ Hotstar in India. Jio has its own OTT platform. There are many players in this sector.
An increased number of subscriptions have shown the OTT platforms’ profits they have never seen before. The increased popularity of OTT platforms helped their stakeholders to get richer in spite of the recession in the Global Economy.
During this pandemic, online services usage is increased. Companies are using online services to get connected to their employees, schools and colleges are using it to continue their classes, regular consumers are using it to be engaged in something in spite of getting bored, to take all this benefit you need an internet connection, which is provided by telecom industries of different countries.
Telecom industries and their stakeholders have earned a good amount of revenue during this pandemic. They have earned their income by providing 4G service to the consumers and wifi services to different households.
In India, jio has the largest share of consumers in the telecom market. This shows one of the reasons that made Mukesh Ambani’s wealth increase in the past days.
Not only jio, but every other telecom industry has seen some increase in their sales in this pandemic.
Lockdowns due to Covid have increased the leisure time for many people globally. People are getting more free time than before, so people are trying different activities to keep them busy. One of these activities is gaming, which has increased its popularity in these past days. People are spending more of their time in different games all over the world. The gaming industry has seen a rise post lockdown.
Games that got popular in this pandemic are PUBG, Free Fire, Ludo King, etc. PUBG became the most popular and most downloaded game in 2020. Tencent, one of PUBG’s
biggest investor, has seen substantial growth in their wealth. Tencent CEO Ma Huateng’s wealth increased in this pandemic, and he became the richest person in China.
Indian esport platform gamerji has also seen growth post lockdown. There was a 2.5x growth in their downloads.
Different healthcare companies are trying to produce medicines that will help the world in this fight against Covid-19. Some of them have got success in it. These companies, due to their success, have seen a rise in their sales.
Glenmark was the first company in India to produce a medicine to fight corona that gave 90% cure-ness to the covid patient. After the launch of this product, Glenmark India has seen massive growth in its share price, making their equity holders richer and wealthier.
Online doctor consultation platforms have also gained some popularity recently. Many Startups are concentrating on these sectors to start their business.
Summing Up : How Billionaires Got Richer
This shows that coronavirus was not a financial disaster for all; it’s like some billionaires in the world were immune to this virus and increased their wealth in spite of the fall in the Global Economy. Recession in the Global Economy didn’t affect the billionaires, and they continued increasing their wealth. But this is putting some serious threat on global racial wealth equality, and this should be seen upon.