Bill Gates Is On His Way To Becoming The World's First Trillionaire!
Could we really see the world's first trillionaire in our lifetime?
A new report on inequality published by Oxfam suggests Bill Gates could become a trillionaire in the next 25 years, however, one critic has called the claim 'ludicrous.'
The Microsoft co-founder is already worth $85 billion, according to Forbes. But if Gates' wealth continues to appreciate at the rate of return it has been for the past decade, then by the time 61-year-old Gates hits his 86th birthday, he should be worth a trillion dollars.
The 61-year-old Microsoft founder, who was the world’s youngest billionaire in 1987 at the age of 31, could be worth $1,000,000,000,000 by the year 2042, the report has claimed.
Oxfam says the wealth held by the super-rich since 2009 has increased by an average of 11 percent per year, using this average rate of growth to make its prediction.
“Once a fortune – or capital – is accumulated, it can grow quickly. The super-rich can achieve returns that are not available to the ordinary saver, helping the gap to grow between the wealthy and everyone else,” the report says.
If Gates' investments continue at that growth rate, then Gates, or perhaps another billionaire close to his level, will become the world's first trillionaire. That's even with the billions Gates has given away to charity. As of 2013, Gates had given away $28 billion to the Gates Foundation, which helps fight worldwide poverty.
However, economics expert Tim Worstall, a Forbes contributor, argues that Oxfam’s claims are ‘ludicrous.’
Looking at the numbers, Worstall explains: “In the proper jargon they are confusing a cycle in the economy with a structural feature of the economy."
“Bill Gates, to be world's first trillionaire soon? Most likely, in fact almost certainly, the answer here is 'No'," he concludes.
Using the same rate of return, and assuming Gates doesn't do something like suddenly give away most of his fortune, and using the same start date of 2006 when Gates was worth a mere $50billion, that means in 25 years, he would be worth $133billion, according to Worstall's estimation.
The Oxfam report concludes that “eight billionaires own the same wealth as the 3.6 billion people who form the poorest half of the world's population.”
Mark Goldring, Oxfam GB Chief Executive, said: “This year's snapshot of inequality is clearer, more accurate and more shocking than ever before. It is beyond grotesque that a group of men who could easily fit in a single golf buggy own more than the poorest half of humanity."
“While one in nine people on the planet will go to bed hungry tonight a small handful of billionaires have so much wealth they would need several lifetimes to spend it. The fact that a super-rich elite are able to prosper at the expense of the rest of us at home and overseas shows how warped our economy has become.”
As the world's richest man is likely to becoming the world's first trillionaire, there have been plenty of Twitter jokes too: