How the American most prosperous sector increased their wealth despite the pandemic? According to the Washington Post report, about nine of the US’s tech-house owners have got their income exceeding $360 billion.
The status of Jeff Bezos as the richest one in the world got challenged as Tesla shares rose to 547%, thus quadrupling the income, making the CEO Elon Musk the one. Mark Zuckerberg’s income got past the $100 billion benches. Also, the combined shares of Google owners of Larry Page and Sergey Brin got to $65 billion.
Tim Cook, the CEO of Apple, turned into a billionaire after Apple’s market capitalization crossed the $2 trillion mark of last year.
The reasons behind it:
During the pandemic, there was increased demand for articles, and the resultant hikes in online shopping caused many fat profits, which is the case with Amazon. The demands of the consumer were at such a high level that the online platform, including other retailers, faced a shortage of disinfectants and sanitizers.
Secondly, as a result of remote work, more houses and workers required cloud computing services. Hence, it led to purchasing of cloud storage from companies like Google, Microsoft, and Facebook.
Due to the disturbing scenario of work and more people exposed to risks of being fired, there’s a rebound in online marketing, which benefitted Google and Facebook. It was further boosted by the demands of communication platforms like Google classroom and Facebook-owned Whatsapp.
Some well-off consumers who were unlikely to be fired increased their disposable income by staying indoors.
The US Richie riches aren’t the only ones, but it also includes Oracle’s executive chairman and CTO, Larry Ellison, whose wealth increased. His net worth rose from $59 billion to $90.3 billion in the last year, just like that of Michael Dell, CEO of Dell Technologies, from $22.9 billion to $44.4 billion at the same time frame.
This picture of havoc gains is totally opposite to the economic collapse of the US, with rising unemployment and getting fired. Hence, this again shows the sharp inequalities in the distribution of wealth, increasing the gap.
However, this enlarged profits during the pandemic enabled funding for Joe Biden’s relief package for COVID 19 by the wealthy American billionaires, as shown by recent reports.