Jeff Bezos' Buying Power: A Case Study in Wealth Distribution

Jeff Bezos, the founder and former CEO of Amazon, has built a personal fortune that is nearly impossible for the average person to fathom. As of July 9, 2020, Forbes reported that his net worth reached $188.2 billion.

How Much Is $188.2 Billion?

Let's break down just how mind-boggling this sum is. If Bezos were to liquidate his entire fortune today, he could cut a check to every person in the United States for approximately $572.04, assuming the current population of 329 million. Alternatively, he could send every person on Earth $24.44, using an extrapolated 2018 global population of 7.7 billion.

The impact of $188.2 billion on the U.S. monetary system is equally staggering. If he liquidated everything in exchange for physical currency, he could single-handedly remove 15.7 of all U.S. currency currently in circulation. To visualize this: $188.2 billion equals 15.7% of $1.2 trillion, the total amount of U.S. currency in circulation.

Physical Forms of Wealth

Another way to conceptualize Bezos' wealth is in terms of gold. At a current price of $1889 per ounce, his fortune could be converted into 6,226,840 pounds of gold, or 3,113 tons. This would make him the largest individual gold holder on Earth. Furthermore, he could give every citizen of Los Angeles 4.05 million pounds and every citizen of San Diego 1.45 million pounds, still having over 715,224 pounds left for Washington D.C. The city's population of about 713,000 residents means Bezos could distribute a pound of gold to each person and have a considerable amount left over.

With a median home price in Phoenix, AZ, Bezos could purchase nearly 700,000 homes, calculated as $188.2 billion divided by the median home price of $269,175. In North Dakota, with a median home price of $237,454, Bezos could buy 792,000 homes. This would be enough for all 762,000 North Dakotans and leave 30,000 homes for odds and ends.

Luxury and Practical Purchases

But luxury isn't the only aspect of Bezos' potential purchases. For example, he could buy 2,688 Ferrari 250 GTOs, which would require a large private garage to accommodate them all. Alternatively, he could purchase 10 million 2019 Toyota Corollas, each with a Manufacturer's Suggested Retail Price (MSRP) of $18,700, which would necessitate an 83.3% increase in Toyota's production to meet his needs.

Perhaps more immediately useful, Bezos could offer financial aid to Canada, which is currently facing a budget deficit of CAD 180 billion due to the impact of COVID-19. He could write a check to cover the entire deficit and still have $8.2 billion left over.

Conclusion

Just as financial aid and luxury purchases are possible, Bezos' immense wealth also opens the door to various forms of wealth distribution and philanthropy. His buying power is not just a measure of personal wealth but also a potential tool for societal impact.