What if the world’s richest paid for govt spending?
THE HANS INDIA |
Feb 14,2018 , 04:04 AM IST
How many days could the government keep running if the richest person of each country was paying for it? The 2018 Robin Hood Index by Bloomberg delves into the subject. The index compares the net worth of each country's wealthiest person to his/her government's spending.
A comparison has been made of their net worth as of end-December 2017 to the daily cost of running each government. The Bloomberg Robin Hood Index shows how many days the richest person of each country can hypothetically keep the government running. By the way, only four out of the 49 on the list are women: in Angola, Australia, Chile and the Netherlands.
If, hypothetically, each government were to run out of resources imminently and the assets of the richest citizen were liquidated and donated to the government, the index estimates how long can this “funding” prevent the respective government from shutting down offices and agencies.
The Bloomberg Billionaires Index and the International Monetary Fund’s estimates of government spending were the building blocks. India’s richest man Mukesh Ambani could keep his country’s government running for 20 days.
In comparison, the most expensive governments to run are Japan, Poland, the US and China, where Jack Ma, the world’s 16th richest person with $47.8 billion, could save the Communist Party for four days.
Jeff Bezos wouldn’t fare much better, even with $99 billion. With the highest government spending on the Robin Hood Index, the world’s richest man would only help the US government for five days, as much as Hugh Grosvenor in the UK and Dieter Schwarz in Germany.
Quantifying government costs for each nation and what they would do with free money is hard because there are plenty of other considerations to take into account. Some of them may not even have a cost per se -- bureaucracy -- or may depend more or less on policy and which ones each government will choose to pursue, spending more on transport and less on defense etc. However, one can see from the Robin Hood Index that most Western nations could not hold the fort very long, even with the help of the richest citizens.
Still, as an intellectual exercise, one can only imagine what the most affluent in 49 countries, with an estimated wealth of $911 billion, or 1 per cent of the world’s 2018 gross domestic product, can do with their money that government can’t resolve on their own.
By: Marine Strauss and Wei Lu