Mubarak's family wealth

Monday, November 7, 2011

According to Al Jazeera, Hosni Mubarak's family wealth totals $70 billion - money essentially stolen from the people of Egypt. To put this in perspective: The CIA Factbook says Egypt's GDP in 2009 was $470 billion (at PPP exchange rates). A country's capital stock is really impossible to estimate, but theory and data from developed countries suggests a capital/output ratio of around 2.5, which would imply national wealth of $1.175 trillion.* So Mubarak's family's wealth is about 6 percent of the wealth of his entire country. Imagine if Barack Obama had accumulated a fortune of $2.1 trillion during his time as president - that's what the comparable figure in the US would be.


* The rate of return on capital is capital's share of output times the output/capital ratio. With a capital/output ratio of 2.5 and a capital share of 30%, that's a 12% rate of return on capital, which is probably in the ballpark.

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