The wealth of markets is not the wealth of nations

Last week, international charity Oxfam released a report designed to shock readers, stating that Brazilian billionaires increased their net worth by USD 34 billion during the Covid-19 pandemic. Their basis for this conclusion was that the financial health of the country’s richest individuals is significantly dictated by variable income, such as stocks, and markets have rallied despite the economic hardships countries are facing.

The report, however, was questioned by several economists — who accused the NGO of skewing the data to further its own agenda. Carlos Góes, a former International Monetary Fund (IMF) economist, poked several holes in the methodology, particularly the dates used for comparison. The study measures the variation in billionaires’ wealth between March 18 — when Brazil’s stock market index reached its second-lowest point of the year — and July 12. As “current values remain lower than those of January 1,” the notion that the billionaires got richer during the pandemic would be debunked.

Regardless of criticisms of the study’s final conclusion, it does raise an important point for reflection: while the Brazilian economy is falling off the rails, its stock market has bounced...