To start, we need to estimate a billionaire's annual income.
In the 30 years from 1987 to 2016, Bill and Melinda Gates amassed about $120 billion. This figure represents $80 billion in net worth and $40 billion controlled by their charitable foundation. The Gates' average annual income for these years is $120 billion divided by 30, or $4 billion. (The Bill and Melinda Gates Foundation is a strategic partner of The Conversation US and provides funding for The Conversation internationally.)
This article originally appeared on The Conversation:
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According to Forbes, the wealth of Amazon CEO Jeff Bezos increased last year from $72.8 billion to $108.7 billion. Despite billion-dollar hiccups caused by daily stock price fluctuations, Bezos' 2017 wealth increase was at least $32 billion, over $1,000 per second around the clock.
The Gates and Bezos are extremes. But what about a more typical billionaire's income?
Let's assume a new fortune has been acquired over about one decade. Since the median worth on Forbes' list is about $2 billion, a ballpark estimate of annual income is one-tenth of this, or $200 million.
In absolute terms, $200 million per year is over $6 per second around the clock, equal to the global median annual income every eight minutes. Each year, Joe Billionaire amasses 4,000 median American incomes.
In 2017, Jeff Bezos raked in 150 times more than Joe Billionaire – the equivalent of 600,000 median incomes.