from the world's big
The world on a billionaire’s budget
Who needs student loans, health care and mortgages?
A billionaire's spending power is difficult to grasp, both because most people do not correctly intuit large numbers, and because a billion dollars far outstrips most people's experience.
What does a household budget look like to a billionaire? To find out, let's scale down a billionaire's income to $50,000, the median American income, adjusting budget items proportionally.
A year in the life of Joe Billionaire
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.)
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.
One cube represents the median U.S. worker's income. (Andrew D. Hwang, CC BY-SA)
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.
A billionaire's household budget
Because Joe Billionaire accumulates 4,000 median American incomes, a $4,000 expenditure for Joe Billionaire is the same fraction of income as $1 for a median American earner.
Let's call $4,000 one "Joe buck," or J$1. Joe Billionaire's annual income is J$50,000. Thus, a $2,000-vacation package costs J$0.50, proportional to a half-dollar from a middle-class income.
At this scale, a generous annual food budget comes to J$3. One year's tuition at a prestigious university costs J$15. An extended stay in a top-quality hospital might run J$50. For J$150, Joe Billionaire can pick up a large middle-class home in most parts of the United States. If that's too modest, a week's income buys a mansion in Rancho Palos Verdes, California. Who needs student loans, health care and mortgages?
Unlike a tithing purchase for you or me, a one-time J$5,000 donation for Joe Billionaire has no effect on spending power. We're speaking of a scale where lavish living costs a few hundred Joe bucks. Next year will bring another J$50,000.
Matters of perspective
Ronald Reagan fomented outrage at one welfare recipient cheating the government of $8,000, or J$2. Unfortunately, we are not proportionally outraged by theft and losses dwarfing the human scale.
By comparison, the Reagan-era savings and loan scandal, the Enron scandal, the mortgage-backed securities crisis and the annual losses to offshore tax havens cost ordinary taxpayers hundreds of billions of dollars, tens of millions of times more than one welfare cheat. That's enough to drain or break even Jeff Bezos' bank.
Public services are inexpensive by comparison. The 2017 budget for the National Institutes of Health was about $33 billion; for the National Science Foundation, $7.5 billion; for the National Endowment for the Arts, $150 million. The 2017 Boston city budget was just under $3 billion, including about $1 billion for public schools, $200 million for pensions and $78 million for the Public Health Commission.
We live in a world where two dozen of the wealthiest individuals could collectively fund health and science research for the United States, where any of the thousand billionaires could individually fund the NEA with no practical impact to their purchasing power. Participatory government may remain, but only the ultra-wealthy need apply.
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Health officials in China reported that a man was infected with bubonic plague, the infectious disease that caused the Black Death.
- The case was reported in the city of Bayannur, which has issued a level-three plague prevention warning.
- Modern antibiotics can effectively treat bubonic plague, which spreads mainly by fleas.
- Chinese health officials are also monitoring a newly discovered type of swine flu that has the potential to develop into a pandemic virus.
Bacteria under microscope
needpix.com<p>Today, bubonic plague can be treated effectively with antibiotics.</p><p style="margin-left: 20px;">"Unlike in the 14th century, we now have an understanding of how this disease is transmitted," Dr. Shanthi Kappagoda, an infectious disease physician at Stanford Health Care, told <a href="https://www.healthline.com/health-news/seriously-dont-worry-about-the-plague#Heres-how-the-plague-spreads" target="_blank">Healthline</a>. "We know how to prevent it — avoid handling sick or dead animals in areas where there is transmission. We are also able to treat patients who are infected with effective antibiotics, and can give antibiotics to people who may have been exposed to the bacteria [and] prevent them [from] getting sick."</p>
This plague patient is displaying a swollen, ruptured inguinal lymph node, or buboe.
Centers for Disease Control and Prevention<p>Still, hundreds of people develop bubonic plague every year. In the U.S., a handful of cases occur annually, particularly in New Mexico, Arizona and Colorado, <a href="https://www.cdc.gov/plague/faq/index.html" target="_blank">where habitats allow the bacteria to spread more easily among wild rodent populations</a>. But these cases are very rare, mainly because you need to be in close contact with rodents in order to get infected. And though plague can spread from human to human, this <a href="https://www.healthline.com/health-news/seriously-dont-worry-about-the-plague#Heres-how-the-plague-spreads" target="_blank">only occurs with pneumonic plague</a>, and transmission is also rare.</p>
A new swine flu in China<p>Last week, researchers in China also reported another public health concern: a new virus that has "all the essential hallmarks" of a pandemic virus.<br></p><p>In a paper published in the <a href="https://www.pnas.org/content/early/2020/06/23/1921186117" target="_blank">Proceedings of the National Academy of Sciences</a>, researchers say the virus was discovered in pigs in China, and it descended from the H1N1 virus, commonly called "swine flu." That virus was able to transmit from human to human, and it killed an estimated 151,700 to 575,400 people worldwide from 2009 to 2010, according to the Centers for Disease Control and Prevention.</p>There's no evidence showing that the new virus can spread from person to person. But the researchers did find that 10 percent of swine workers had been infected by the virus, called G4 reassortant EA H1N1. This level of infectivity raises concerns, because it "greatly enhances the opportunity for virus adaptation in humans and raises concerns for the possible generation of pandemic viruses," the researchers wrote.
SEAL training is the ultimate test of both mental and physical strength.
- The fact that U.S. Navy SEALs endure very rigorous training before entering the field is common knowledge, but just what happens at those facilities is less often discussed. In this video, former SEALs Brent Gleeson, David Goggins, and Eric Greitens (as well as authors Jesse Itzler and Jamie Wheal) talk about how the 18-month program is designed to build elite, disciplined operatives with immense mental toughness and resilience.
- Wheal dives into the cutting-edge technology and science that the navy uses to prepare these individuals. Itzler shares his experience meeting and briefly living with Goggins (who was also an Army Ranger) and the things he learned about pushing past perceived limits.
- Goggins dives into why you should leave your comfort zone, introduces the 40 percent rule, and explains why the biggest battle we all face is the one in our own minds. "Usually whatever's in front of you isn't as big as you make it out to be," says the SEAL turned motivational speaker. "We start to make these very small things enormous because we allow our minds to take control and go away from us. We have to regain control of our mind."
Is focusing solely on body mass index the best way for doctor to frame obesity?
- New guidelines published in the Canadian Medical Association Journal argue that obesity should be defined as a condition that involves high body mass index along with a corresponding physical or mental health condition.
- The guidelines note that classifying obesity by body mass index alone may lead to fat shaming or non-optimal treatments.
- The guidelines offer five steps for reframing the way doctors treat obesity.