It’s ridiculous how much people hate billionaires, especially when you consider what “net worth” is in the first place. Everyone, including you, has a greater net worth than money in the bank.
Take someone who considers themselves poor, or actually is poor, which is most likely everyone reading this post. You may have just a few dollars in the bank, or maybe you only have a few cents… Still, your net worth is more than that.
If you’re wearing a shirt, and pants, and socks, and shoes … that’s part of your net worth. If you have a car, even if it’s a 25-year-old scrap pile with an engine, that’s part of your net worth.
A person’s net worth is the total amount of money all of their combined assets are worth. All rich people in the world have the vast majority of their wealth in stocks. Stocks gain and lose value every minute of every day.
Since most people don’t understand anything about stocks … a stock is a portion of ownership of a company. People exchange ownership of companies for money. When companies do well, their stock is worth more. Companies only do well if they have products and services that people willingly spend their money to use.
And here’s another important fact about trading stocks: When billions of dollars worth of stocks are sold, it makes the price of each stock drop, which means everyone with that company’s stock loses money, and then they feel more prompted to dump their stock, too.
Shareholding is not just for rich people. Literally anyone can own stocks, especially since it’s easy to trade just from a phone now. You, yes you, person reading this post, can own stocks. Just download any or all of the apps TD Ameritrade, Robinhood, or Webull, and bam, now you’re a shareholder too.
So, it’s not a legitimate (or intelligent) excuse to demonize anyone who owns stocks, especially someone who owns a lot of the stock of a company they started from scratch, like Jeff Bezos.
Their billions of dollars are not just sitting in the bank. They are not all Scrooge McDuck keeping towers full of hundred-dollar bills hidden from the rest of the world. Most of the money in every billionaire’s net worth technically isn’t their money yet. Just like the shirt on your back is not cash; you would have to sell your shirt first. Same goes with stocks.
Even if they had billions in the bank at all times, that money would still not just be sitting there. Banks give out loans, and they pay credit to everyone’s account just for letting them hold their money in the first place. Banks don’t make money come out of nowhere, you know… That’s the Federal Reserve’s job!