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DNA Explainer: Will Tesla CEO Elon Musk's 2% wealth put an end to world hunger as WFP Director suggests

Elon Musk said that he was willing to sell his shares in his company if World Food Programme explain how this wealth would put an end to world hunger.

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At a time when the COVID-19 pandemic has pushed back people from many developing countries into poverty while making a handful super-wealthy, the disparity is now all the more strikingly apparent. The United Nations' World Food Programme Director recently said that a small group of ultra-wealthy individuals could help solve world hunger with just a fraction of their net worth.

"Billionaires need to step up now, on a one-time basis," said David Beasley in an interview with an international media citing specifically the world's two richest men - Jeff Bezos and Elon Musk. "USD 6 billion to help 42 million people that are literally going to die if we don't reach them. It's not complicated," he added.

However, the statement made by David Beasley has created some controversy. Tesla and Space X founder Elon Musk was quick to respond. Elon Musk took to Twitter and challenged that he would be willing to sell his shares in his company if World Food Programme can explain to him how his wealth would put an end to hunger in the world.

Today we try to look at the possibilities of David Beasley's idea of eliminating hunger is how far feasible but before that let us take a look at Elon Musk's wealth.

Elon Musk wealth

Tesla CEO Elon Musk has a net worth of nearly USD 289 billion, according to Bloomberg.

This means World Food Programme Director David Beasley is asking for a donation of just 2% of his fortune. 

Elon Musk's wealth is based on the value of his companies including Tesla (TSLA) and SpaceX.

Elon Musk's Tesla is only the sixth US company in history to be worth more than USD 1 trillion.

SpaceX is believed to be the nation's most valuable privately-held enterprise with an estimated value of more than USD 100 billion.

Tesla saw global sales of 627,000 vehicles in the first nine months of this year and net income of USD 3.2 billion.

The net worth of US billionaires has almost doubled since the pandemic began, standing at USD 5.04 trillion in October.

The data is by progressive groups Institute for Policy Studies and Americans for Tax Fairness.

How much will end world hunger?

The USD 6 billion asked can help avert an emergency hunger crisis but cannot solve the problem of global hunger permanently.

It is estimated that USD 6 billion could help feed 42 million people around the world for just about a year.

There are various estimates regarding the exact amount of money that will end global hunger and other forms of poverty.

Some researchers estimate that it would cost USD 330 billion to end global hunger by the year 2030.

Can hunger be eliminated by donating money?

Economists have various viewpoints on that. It is often said that cosmetic solutions do not last for long and permanent solutions need to be looked at.

Some economists blame global poverty and hunger to wealth inequality as the rich keep accumulating wealth leaving the poor with very little to even buy essential goods.

Their recommendation is the redistribution of wealth from the rich to the poor to help them come out of poverty and hunger.

The opposite side argues that the economy is not a zero-sum game and that the people are poor not because those at the top of the pyramid are rich.

These economists argue that some people live in poverty because they are unable to earn a proper living due to various external factors.

Poor countries have lesser means of earning a livelihood and the poor there have very little economic freedom to make a decent living.

Economists argue that instead of building a robust system in such a scenario, humanitarian aid can only provide temporary relief.

Critics of wealth redistribution also point out that aid allocation is often heavily influenced by politics and is thus prone to corruption.

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