The Ultra-Rich Who Crushed It in 2020 Are Now Bracing for The ‘Backlash’

The comments below are an edited and abridged synopsis of an article by Tyler Durden

If there was one topic that garnered interest over 2020, it was how the rich were getting much richer as a result of global stimulus disguised as helping the little guy.

The Ultra-Rich Who Crushed It in 2020 Are Now Bracing for The ‘Backlash’ | BullionBuzz | Nick's Top Six
Cropped shot of a businessman changing the gears of a luxury car

Elon Musk saw his net worth rise by over $100 billion during 2020; he is one of a top 1% that saw a tremendous windfall from central banks printing money to prop up global capital markets. Nearly two thirds of the world’s billionaire class put together larger fortunes in 2020. Forbes estimated that billionaires got 20% richer in 2020 by mid-December.

Now, the rich are bracing for the backlash of widening inequality and markets eventually turning against their favour.

Many of the rich cashed in on investment opportunities that the average investor couldn’t participate in, like capitalizing on market volatility with short-term derivative trades.

The wealth of US billionaires rose to $4.2 trillion by the end of 2020, about 20% of US economic output for 2020 and double the wealth held by the bottom half of the nation’s 330 million person population.

And whether it be for tax purposes or just trying to avoid the blowback of the widening inequality gap, the soaring fortunes have put some added focus on philanthropy.

UBS’s American head of family advisory and philanthropy services Judy Spalthoff says there has been a shift in the conversations among families in terms of consideration of social inequity. The younger generation has been pushing this topic at the board level. Many families say, “Yes, we’ve had success. We’ve worked hard for this success. But let’s not be blind to the world around us. And let’s make sure we can step out of our bubble.’”

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