Monday, August 17, 2020

Coronavirus Is A Poor Person's Virus

vanityfair |  “All these rich people can’t stop themselves,” one person who is close to a number of wealthy tech CEOs and venture capitalists told me. “They just can’t stop themselves from throwing parties and going on their jets and socializing as if everything was normal.”

In many respects, to them, things are better than normal. Those on the top billionaire lists have only grown richer over the past five months, as tech has soared on the S&P and NASDAQ, helping push the markets back to their pre-COVID numbers, and adding double-digit billions to some tech CEOs’ personal net worths in a single day. Look no further than Apple or Amazon as a prime example. While 16.3 million Americans are unemployed, Apple is now nearing a $2 trillion market cap and Amazon just posted record profits of $5.2 billion in the last quarter—double last year’s goal.

So what are these elite tech founders doing with their wealth? Mostly living life as they did before coronavirus. I’ve spoken to numerous people who’ve described countless billionaires hitting the road, flying around the country to wherever case numbers are lowest. One investor worth several billion who has several homes told a friend—who then parlayed the information to me in tones of shock and awe and more than a tinge of jealousy—that he was in Miami when the numbers were lowest at the start of the pandemic; hopped over to Los Angeles when Florida got a bit dicey; and now that California is a hotbed, is in New York enjoying the season’s outdoor dining. Another billionaire in Los Angeles has been hosting lavish dinner parties (no social media allowed) where an on-site nurse administers 15-minute coronavirus tests outside as guests drink cocktails, and allows them in to dine once their test comes back negative. And yet another investor told me about some of his colleagues who chipped in for a massive $50,000-a-month compound in Palm Springs that’s being used as a group party house. (I’ve heard about similar setups in Los Angeles and Silicon Valley.)

For those who don’t want to be in America (and let’s be frank, who really wants to be in America right now?), there’s an easy solution. A report last week found that the superrich are paying as much as $2.6 million for international citizenships, then zipping out to said country on their private jets. Not everyone owns their own jet, or “P.J.,” as they’re called. As a result, jet rentals are skyrocketing. A spokeswoman for NetJets, a private-jet rental company, told me that inquiries for flights shot up from the previous year, and have only continued to grow as the pandemic has stretched on. In April, for example, calls to NetJets was up 60% for the year prior, as of June, it was 195%, the spokeswoman said.