Why do billionaires need so much money?

Money: chips of base metal and pretty pieces of paper. But some of us will kill for it - what's the matter with the human race......

Elusivebutterfly
The Bill Gates donations ( and his friend, Warren Buffet) all come with strings attached. That equals power.

If any of you are interested in where the money goes and who set up the system watch The Spiders Web on Netflix.

The likes of Richard Branson, James Dyson, Sir Jim Ratcliffe etc are all making millions of pounds, they are also creating jobs and wealth.
We know two families who are extremely wealthy, they are both altruistic.
If they continue to make money why not?

Sago

The likes of Richard Branson, James Dyson, Sir Jim Ratcliffe etc are all making millions of pounds, they are also creating jobs and wealth.
We know two families who are extremely wealthy, they are both altruistic.
If they continue to make money why not?

Hear, hear

I'm sorry, but I am not impressed by the fact that people who have become wealthy from the money we exchange for their goods and services (from which many are making excessive profits0 are kind enough to throw us a few crumbs back by way of philanthropy.

We have 4 million people in the UK living in absolute or relative poverty. These rich mans' crumbs don't appear to be benefitting them at all.

As for creating jobs? It's a symbiotic relationship, isn't it? Without those jobs they wouldn't be able to attain their wealth.

From the article I linked to previously:

In 2010, the UK had 54 billionaires with wealth of £58.1bn. By 2023, it grew to 171 billionaires with wealth of £684bn. Just 50 families have more wealth than half of the population, comprising 33.5m people. The richest 1% are wealthier than 70% of the population combined. They own 36.5% of all financial assets, with a value of £1.8tn.

A large proportion of the population has been pushed into poverty as part of an economic experiment to produce a docile and obedient workforce. In 1976, at the height of trade union membership, workers’ share of the gross domestic product (GDP), in the form wages and salaries, was 65.1%. At the end of September 2023, after the onslaught of anti-trade union laws, fire and rehiring of workers on low pay, zero-hour contracts and more, workers’ share of GDP has declined to around 49% of GDP.\

Ministers boast that since 2010, GDP has grown by 24%, but the benefits have hardly trickled-down. The average real wage has returned to the 2005 level. In 2023, the annual median wage in money (nominal) terms were £29,669; and mean wage was £35,404. The Joseph Rowntree Foundation estimates that a single person needs to earn £29,500 a year to reach a minimum acceptable standard of living. A couple with two children need to earn £50,000 between them. Some 19m adults have annual income of less than £12,570. Nearly 50% of the population is teetering on the edge of economic survival and does not have the reserves to boost economic revival. The standard of living of the poorest Britons is 20% lower than their counterparts in Slovenia.

Something isn't right about this...

MaizieD sorry this is going to be brief as I am off out on Granny duties.

As you know I am in business why would anyone start up and/or continue in any business without making a profit for either the owners and/or shareholders?

In my opinion as long as all the appropriate taxes are paid and nothing illegal is taking place I cannot see the problem with making profit. If the price you are charging for goods or services provided are too high, people will go elsewhere.

I appreciate that with utilities it is a different matter, but we all have the choice to change our provider, except of course water and sewage which definitely needs looking at.

The examples you have given seem to be on the extreme end of high, are these profits earmarked for reinvestment in new plant, research, new premises etc.?

Disclaimer I am not a billionaire.

I am on a middle class income in a western country, I am a billionaire compared to a large proportion of people on the planet.

I entirely agree GG. If anyone makes a shedload of money perfectly legally and pays their taxes, how much money they have and what they do with it is none of my business.

Germanshepherdsmum

I entirely agree GG. If anyone makes a shedload of money perfectly legally and pays their taxes, how much money they have and what they do with it is none of my business.

So I'll assume that if a government made it illegal for people to 'make a shed load of money' and raised the level of taxation on those profits you'd be perfectly happy with it?

There is a moral and philosophical dimension to the argument, but let's leave that to one side if legality is all that matters to you...

@GG13

I have no problem with private enterprise and profit.I think it reasonable that anyone who works for their sustenance should benefit from their work. I do, of course, mean both employers and employed. I have a problem with inequitable distribution of all resources (including money) in a world where those resources are finite.

I am assuming that the report which Lord Sikka is taking his information from is talking about net profit. I shall read it when I get a moment and report back.

I don't know about billionaires, but Capital, a novel by John Lanchester features, among others, a very wealthy man anticipating his year end bonus.He needs a million, he thinks, because his second home needs a new kitchen, the fees for his daughter's pony stabling have risen etc; etc;. Obviously it's a little tongue in cheek but it is interesting to view the world through his eyes. Spoiler alert - he's sacked and things change fairly dramatically for him!

No government of this country is going to make it illegal for people to make money Maizie. It might raise the level of taxation of course - I am not a believer in high taxation. I am not in the least interested in arguments about the morality of making money by lawful means. Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

To fancy that re. yachts: we were once in Monaco, sitting on the edge of the harbour wall eating our baguettes (being naughty as this was not allowed but we were not challenged). In to the harbour came the most enormous yacht. There were cars on the dock waiting for those on board with much flashing of car headlights to indicate it was safe - or something, I am guessing.

This yacht was eight stories tall with pool and probably every accoutrement that a yacht owner such as this could desire. It was huge, towering above the other moored yachts. We looked in awe (but not, actually envy). Then... five minutes later came an even larger yacht, longer and taller than the first.

I am sure that yacht owner number one looked with envy at the yacht of owner number two but..... who knows when an even larger ship would arrive into the harbour! Each owner probably spends an inordinate amount of time worrying if his yacht is inferior!

My point is that no matter how much one has, there is someone better (or worse) off than yourself - we should all be grateful for what we have!

Thanks for that!

Then... five minutes later came an even larger yacht, longer and taller than the first.

Germanshepherdsmum

No government of this country is going to make it illegal for people to make money Maizie. It might raise the level of taxation of course - I am not a believer in high taxation. I am not in the least interested in arguments about the morality of making money by lawful means. Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

I really didn't think you would be, GSM.

we should all be grateful for what we have
The plan is working, then.

MaizieD

Germanshepherdsmum

No government of this country is going to make it illegal for people to make money Maizie. It might raise the level of taxation of course - I am not a believer in high taxation. I am not in the least interested in arguments about the morality of making money by lawful means. Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

I really didn't think you would be, GSM.

Add me to the list of people disinterested in giving legally earned, fully taxed money to the government to waste.

To keep up their lifestyle as we all do. How we live and spend our money depends on our income. We earn it and spend it how we want according to our means. Whether we are on low incomes or billionaires only we have a right to decide how we use our money, nothing to do with anyone else.

Norah

MaizieD

Germanshepherdsmum

No government of this country is going to make it illegal for people to make money Maizie. It might raise the level of taxation of course - I am not a believer in high taxation. I am not in the least interested in arguments about the morality of making money by lawful means. Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

Nor am I interested in arguments about the ‘equitable ‘ distribution of wealth or other resources, which inevitably means that assets should be taken from the rich and given to the poor.

I really didn't think you would be, GSM.

Add me to the list of people disinterested in giving legally earned, fully taxed money to the government to waste.

As the money comes from the government in the first place that's quite some statement.

If the government didn't issue any money you'd all have a bit of a problem. And that included the billionaires.

How can it be right that an estimated 40 trillion of untaxed dollars in offshore accounts.
That’s 40,000 billion dollars
I truely think some people don’t understand how big a billion is, let alone a trillion.

I believe I have the capacity to understand those figures.

Maybe a great many trillions of dollars are untaxed because advantage of lawful tax avoidance has been taken. It’s not against the law to have an offshore account. What would you say if I told you I had an offshore account but have always paid UK taxes in full? There are benefits to be had with an offshore account beyond tax evasion, something I would never be involved in,

Margaret Thatcher has a lot to answer for

petra

How can it be right that an estimated 40 trillion of untaxed dollars in offshore accounts.
That’s 40,000 billion dollars
I truely think some people don’t understand how big a billion is, let alone a trillion.

I could be utterly wrong, but I think it comes down to lawyers.

Many of us think that governments are the top layer of society, of what governs a country.

In my opinion, that is incorrect.

Until a few years ago, I did not realise that there are lawyers and lawyers.
The people with the most money, can afford the best[not sure what other word to use, brightest?] lawyers.
The very wealthy can afford to out lawyer, the HMRC for example.

I realise I have not used exact wording, but I dont know the exact words to use.