Billionaires keep losing billions of dollars why poverty rate is increasing

[yhiaali3]

There is no loss in practice, but only on paper, meaning these numbers are a result of the decrease or increase in the value of the shares, but that does not mean that they are actually losing, rather the value of the shares has decreased only, because they will not actually sell at a loss.

The same thing, when the value of shares rises, they make billions, but if they do not actually sell, then this profit is on paper only, it is just numbers that change.

As for your question why they don't use this money to help the poor instead of losing them, even if it is their actual loss they really don't care about the poor or their suffering. They may make some deceptive appearances and expressions in front of the press just to beautify their image, but in reality they do not care.

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[maydna]

Even if the billionaire loses money, it won't make them poor because they can still earn more money. They still have a source of income that will give them more money and recover the losses so that it won't affect their portfolio. The billionaire has given his money to help poor people, but maybe they don't publish it, and we don't know about that. Many rich people think the more they give to others, they will get a lot of returns, and that is not limited to money but many other things.

[Kakmakr]

That is just paper losses and so-called funny money, where they do not actually lose that money, until they sell those shares at a loss. They still own those shares, but it is just valued at a much lower price.

The majority of them do not have all their eggs in one basket.... take Elon Musk as an example..... He has money invested in several projects... Tesla / SpaceX / Power Wall / Boring hole ...etc. (He has an army of financial advisors to manage his global financial portfolio)

[bakasabo]

we have billionaires losing huge amount of money every year, why not they use those money to help the poor rather than losing them

Here is the explanation. The billionaires wealth is a calculation of all of his assets. You ask why they did not help poor? Reason is simple, if they start to help poor, they will create even more poor people. Lets say Jeff Bezos decides to sell Amazon stocks. That will cause stocks value to drop deep, and an economical collapse. While trying to help poor, he will turn Amazon stock owners into poor. That is balance. You cant take money from somewhere to help someone, and not harm others. Printing money wont help either.

If you think that Jeff Bezos, Mark Zuckerberg, Elon Musk have all those money, the amount of money states on Forbes or other tops, on their bank accounts/have a plastic card with billions, I suggest you to take pink glasses off.

[Leviathan.007]

I am always skeptical why billionaires are always losing huge amount of money in days while people are suffering. Last time I read in a new that Elon Musk loses upto 4 billions in just few hours and the other time he made close or more than that in days. Money that would be very hard for an employee or middle class business owners to make in a year.

If we take a look on the news we will see that billionaires loses upto 2 trillions dollar last year and this January we had been hearing about several loses from some of the world billionaires.

Last year I heard that Jeff Bezos loses up to 80 billion dollars and Mark Zuckerberg also loses close to that amount which is enough to allivate poverty from a continent. The cause of their lose is best known to them but I think the funds should have been used to help the poor rather than allowing the money to vanish in a thin air.

I have seen so many programs fro the masses especially to aid those that are in need. Some of these aid organisations do seek for donations from individuals, companies that are ready to help with funds. When we have billionaires losing huge amount of money every year, why not they use those money to help the poor rather than losing them

The reason why billionaires like Elon Musk are losing billions of dollars is they take risks and actually that's the reason why they are billionaires the more risk you take the more reward you get and surely they are not going to win anyone, sometimes they lose and since they invest huge amounts of the dollar they lose billions of dollar which is not something odd. Also, the recent pandemic and the economic crisis made the situation wort for people and due to the inflation rate the poverty rate is increasing all over the world and even in developed countries.

[autumnleaf]

A billionaire who loses a billion dollars is not actually losing cash, but rather the value of their assets as a result of market fluctuations that lower the market value of their stocks and losses from investments. Be aware that we're talking billions of dollars here, not just a few thousand, so when the market isn't doing well, they lose a lot of money.

[Hydrogen]

I am always skeptical why billionaires are always losing huge amount of money in days while people are suffering. Last time I read in a new that Elon Musk loses upto 4 billions in just few hours and the other time he made close or more than that in days. Money that would be very hard for an employee or middle class business owners to make in a year.

Tech billionaires hold large quantities of stock in their respective corporations. The net worth gain and loss reported by the media is measured in fluctuating stock prices. Post 2020 we have witnessed several massive swings in stock price shift the net worth of tech billionaires by unheard of amounts of volatility. They "lose money" when stocks decline and "gain money" when stocks rise. Holding a majority percentage of stock in the company gives them certain voting rights and influence within the corporate structure.

Helping the poor is much more difficult than many might expect it to be. Many have drug and substance abuse issues. Which only multiply whatever spiritual, physical and psychological troubles they might have.

Years ago, there was a comprehensive study done in the united states which tracked the development of fetuses who were born addicted to crack cocaine. Their conclusion was being born and raised in poverty was a more debilitating and damaging condition, than being born addicted to crack. Being surrounded by negative mindsets, bad attitudes, substance abuse, violence, crime and other issues which plague the poor were damaging to people in ways that is difficult to measure. In which case, it may not simply be a matter of simply throwing money at the problem. There has to be some type of significant readjustment that has to take place. People have to work very hard to unlearn the environment they were born and raised in, to be able to live outside of it.

[Nhazwrath]

problem number 1     you saw in the news.   << that's a problem

problem number 2  Faith in governmental programs.   <<  that's a worse problem 

[Flexystar]

That is because they have made proper propagandas of money makes money! They are not working hard, but they are working really smart in the current era. Their investments are in the form of their own company shares and thus their wealth is defined by how much people are willing to buy and sell. The more we invest into their companies the more they earn in the profits net proceeds. One more important thing, they are not suffered from the losses because they have management team behind arrangements of their expenses and anything that has money into its matter. It gets properly taken care of! Thats why they would worry less about the losses and focus more on generating higher revenue in return.

[dothebeats]

These billionaires lose that kind of money not in cold, hard cash. They lose these in the form of stocks that they own in a company or different companies. Not all those billions are liquid, and bulk of those are made up by stocks or derivatives and other assets that has the said value. And during those crashes, those billions are just redistributed among other traders so the money doesn't really go to just one place.

Even with that much money in numbers, helping the poor would require a lot more than money. You still have to make sure that it goes through proper channels, and even if all of those billions are exhausted, you can never be sure until when would the help last. That's why it's a lot better to give the poor some jobs that they need rather than hand outs or cash aid so they can be self-sustainable.

[Fivestar4everMVP]

@Dickiy pretty much said it all, nothing much of  importance to add as the fact that people don't always plan for loses, loses just come, the people OP mentioned and talked about helping alleviate poverty from the world are probably doing their best, the fact remains that no matter how much the world billionaires invest into the world to alleviate poverty, the world will never arrive at a phase where every single person will be rich, poor people will always exist no matter what, so as a billionaire, you can only do the best you know you can, give to as many you reach and have to give at the time, don't get drown trying to free the entire world from poverty cus its not possible to do.

[stompix]

Alleviating poverty might not necessarily mean sharing money or giving people cash. What it might mean is to create platforms where these people can be employed or acquire skills that would be beneficial to them. It could also mean assisting them to get better health services, good infrastructures or even quality education.

Of course not, but do you think those that salivate all at Musk or Bezos's wealth are thinking of investment or paychecks?

And there are plenty of these programs, here are 30 billion! for food security
Development partners commit $30 billion to food production in Africa
As usual, coming from the evil and exploiting capitalistic west.

The poverty rate has increased basically because there is less money in circulation, and those most affected tend to be low income people who lose their jobs or have their hours reduced and therefore get paid less etc.

Not because half of the population growth comes from poor countries in families that can't afford anything, even basic education, sentencing all these kids to a life in poverty? Just a thought..

[Casdinyard]

It's just like what Dickiy and the other ones have said. Their assets dipped in value. But in no way whatsoever does it mean that they lost anything. For instance, the biggest contributor to Elon Musk's fall from the top spot is Tesla's deprrciation in the stock market. Because a couple of people saw how poorly he carries himself on the internet. It made the people think less of Tesla and had therefore withdrew some of their holdings. But this in no way means that Tesla is no more, or that Elon doesn't have any hold snymore over Tesla.