The Decline in the Number of Billionaires

The March 30, 2009, issue of Forbes magazine highlights "The Richest People in the World," and focuses on what the cover calls "Billionaire Bust." As I flipped through the magazine, I came across some interesting statistics. This year, billionaires have an average net worth of $3 billion, a decline of 23% in a year. There are currently 793 billionaires in the world compared with 1125 a year ago. (Page 75) Even billionaires have not been exempt from the current economic crisis.

Even more interesting was to look at the top 20 billionaires in terms of what they're involved in that has given them their money. Almost without exception, they are involved in enterprises that provide goods and services to other people. Seven out of the top 20 oversee businesses that target budget-conscious consumers: Ikea (low priced furniture and other household items), Aldi (discount groceries), Trader Joe's (discount gourmet groceries), and Wal-Mart (discount just about everything). My wife and I shop at three of these on a regular basis, and appreciate the prices and quality.

One point I want to make is that the top 20 and many of the others on the list are not simply sitting back and enjoying their money. In the classic definition of capitalism, they are people who are making money by providing goods and services that others are willing to buy. There is no indication that the billionaires are going to stop doing what they're doing just because they have a pile of money.

I have to confess that I have sometimes felt envious about wealthy individuals. I grew up poor. Our family lived in homes that would today be described by realtors as "tear-down houses." I walked the lonely walk to the outhouse more times than I can remember. It just didn't seem fair that some people had it all and my family had very little.

I'm more mature now, and I understand that fairness usually has nothing to do with success and wealth. We look at ourselves and our talents and our interests, and we work toward a career that fits us, and we accomplish what we can, and we acquire the money that we do. My choice might lead to a moderate income and a comfortable lifestyle. Someone else's choice might lead to millions or billions of dollars and an unbelievably luxurious lifestyle.

We make our choices and hopefully we learn to be content with what we have. I don't know what goes on in the mind of a billionaire and I don't care. They have their place in this world and I have mine. The ongoing desire of politicians to tax the rich generally reflects a class envy that has no place in a society like ours and too often leads to destructive consequences rather than constructive ones. Just because people are rich doesn't mean that they're bad...or stupid.

Years ago, Congress decided to add a luxury tax yachts, figuring that rich people wouldn't object to paying an extra 10% or so for their new toy. Congress was wrong. The potential yacht customers declined to buy and yacht manufacturers had to lay off workers. It wasn't long before the tax was repealed.

Here's the bottom line for me in this whole issue of envy. It comes from Philippians 4:11-12: "I have learned to be content whatever the circumstances. I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want." (New International Version of the Bible)

What's the secret? If you want more, go out and work for it. Don't expect the government to give it to you. Government as the "nanny state" has gotten us in the mess we are today. We don't need more messes!