Jeff Bezos, the co-founder of Amazon has officially made it all the way to the top of Forbes list of world’s billionaires. Moreover, he has become the first and only person in America to acquire the title of centi-billionaire at a total worth of $127 billion, as determined by the Bloomberg Billionaires Index. He has now surpassed other well-known billionaires, like Bill Gates, the co-founder of Microsoft who is estimated at the worth of $90 billion, and Warren Buffet, the CEO of Berkshire Hathaway. Though Bezos was already a centi-billionaire from the sudden development of the Amazon shares last year, he has already earned about $15 billion more in the start of just this year and is expecting further growth.
This is apparent by the four percent increase – in Amazon stocks – in February when the broader market suffered a decline of four percent.
“Bezos has seen his wealth remain in excess of $100 billion, and with the likes of Bill Gates, Warren Buffett and Mark Zuckerberg also tipped to reach that eye-watering milestone, it seems we’re entering the era of the centi-billionaire,” articulated by Vishal Chhatralia, the Vice President of Digital Operations for RS Components.
To illustrate the astronomical extent of his wealth, juxtapositions have been made. To begin with, the ratio of a centi-billionaire with exactly $100 billion juxtaposed with an average American’s wealth (based on the country’s Gross Domestic Product) is 1 to 1.8 million. Likewise, the ratio of an average American’s wealth juxtaposed with Jeff Bezos’ fortune is 2.3 million to one.
Capitalism promotes profitability and long term economic expansion. It is the market system that has led to the United States’ success in today’s global market. However, it is also a system that works by merit. Although it can bring about a vast reduction in the unemployment rate that consequently eliminates the costs and wastes in the society, many have brought up the counterargument concerning the increasing gap in wealth inequality. Ultimately, the decision-making power within the market will fall on the top tier of the society, the centi-billionaires and the government, resulting in the negligence of other consumers’ wants and needs. This is a cause of distress because if the gap of wealth inequality gets bigger without a solution, various form of political instability and radicalization of society will be more likely to happen.
Nonetheless, the neoliberal form of capitalism is believed to be the most satisfactory political economic future so far as it is able to solve the demand problem caused by wealth inequality. This is attributable to the increase in state spending following the increase in profit margins as business proprietors dominate the labor industry. Like the conventional capitalist system, this, too, works by merit and though wealth inequality may become an issue, the increased collective spending can act as a counter against it. The strength of continuing the neoliberal form of capitalism, perhaps with some adjustments to it is that it is currently the most efficient system in maintaining a balance relationship between the society and economy of a nation. Yet again, this system, without its previous function to ensure a stable growth in the economy, will only result in a decline in the living standard of the majority.
Hence, a centi-billionaire’s decision towards the final placement of their fortune can affect the future of many; ranging from an individual to an entire nation. Prospective centi-billionaires such as Bill Gates, Warren Buffet and Mark Zuckerberg have all pledged to return a big portion of their fortunes to the society for the greater good. No such promise has been made by Jeff Bezos. Then again, Bezos and his spouse have been quite the philanthropist for some time now. As alumni of Princeton University, they have previously donated a sum of $15 million to the college. In addition, the United States branch of Reporters Without Borders opened an office in San Francisco, California after receiving a generous donation of $250,000 from Bezos.
Adding to the list is a $33 million donation made to TheDream.US, a scholarship reserved for a thousand immigrant high school students with Deferred Action for Childhood Arrivals status who are receiving tertiary education. His reason for choosing this cause could be traced back to his father. As a sixteen years old Cuban immigrant, his father traveled by himself to the States under Operation Pedro Plan.
All things considered, however, the key aspect to keep an eye on is Blue Origin, Jeff Bezos’ space exploration company. His alleged plan is to support this company by trading off $1 billion worth of Amazon stock annually. Blue Origin centers its research with the goal to acquire technological revolution. Bezos have explained his vision to build an economical space platform to compete with the Internet, despite its current focus on commercial purposes.
“That will be necessary to save the Earth, because without being able to expand into space, human civilization will have to contract,” he justified at a conference held in Los Angeles, California last November.
Featured Image via Flickr/James Duncan Davidson
