The Problem with Billionaires — and the Debut of True Net Worth | Randall Lane | TED

The speaker, a journalist and anthropologist who has spent years studying billionaires, notes the dramatic increase in their numbers since 1991, from 274 to over 3,400. Despite their economic impact, a recent survey revealed that billionaires are not well-liked, ranking lower than trial lawyers and even tied with members of Congress. The speaker argues that the world needs billionaires, citing China as an example where the rise of billionaires coincided with a significant decrease in extreme poverty. Conversely, countries with no billionaires, like Cuba or Iran, tend to experience stagnation. This suggests that personal wealth creation can lead to societal wealth and progress, while capping earnings is linked to repression. The reason for the resentment, according to the speaker, is largely due to wealth disparity and the perception that billionaires are not giving back enough. While the wealthiest individuals have net worths in the hundreds of billions, their charitable donations often amount to less than 1% of their net worth, significantly less than the average American's contribution. This gap, the speaker believes, is a major driver of public dissatisfaction. The speaker touches on historical figures like John D. Rockefeller and Andrew Carnegie, who, despite being monopolists, eventually became respected for their philanthropic efforts. The core issue, the speaker posits, is that some billionaires seem to forget that the primary purpose of business is to create happiness, not just accumulate wealth. To address this, the speaker proposes a new metric called "True Net Worth," which would factor in charitable donations. This idea was inspired by interactions with billionaires who were focused on their rankings on Forbes lists, including Kanye West, who frequently contacted the speaker to assert he was richer than reported. The speaker recounts instances of billionaires attempting to manipulate their reported wealth to appear higher on lists, like Prince Alwaleed and Kylie Jenner. True Net Worth aims to incentivize philanthropy by rewarding those who give generously. The speaker highlights Warren Buffett as an example, noting he has already given away more than his current net worth and has pledged the vast majority of his remaining assets to charity, with the stipulation that it be spent within a decade of his death. MacKenzie Scott is also praised for her rapid and impactful charitable giving. The speaker concludes by advocating for the principle of "giving while you live," encouraging billionaires and millionaires to donate their wealth and time generously. This, they argue, supports the very economic system that creates prosperity for everyone.