Why did former president Donald Trump's net worth drop a staggering 700 million dollars since he was elected president?
Donald Trump's net worth dropped from $3 billion to $2.3 billion over the course of his presidency, according to Bloomberg's Billionaires Index.
Since stepping away from his company, the impact of the pandemic, as well as two rounds of impeachments have wreaked havoc on Trump's businesses - even as his dozens of visits while in office helped the firm rake in thousands from security details and more.
In January, a public relations expert, Eric Schiffer, told Insider Trump's businesses might never recover from his presidency.
"Trump will exit the presidency with a brutal set of targets surrounding the heart of his brand, which will be a danger to his survival economically and that of his children, and likely will lead to excruciating pain of the type he has really never faced," he said.
About 75% of Trump's income comes from commercial real estate, according to Bloomberg. The work-from-home boom has made the business more precarious than ever, as companies look to minimize office space.
The cities where Trump has most of his stake - New York and San Francisco - have also been hit the hardest. The valuation of Trump's commercial real estate business is down over 25% from when he started his presidency, Bloomberg reports.
Trump's line of resorts and hotels have also suffered from Covid-19 travel restrictions, falling over 40% from 2015 to 2020, according to Bloomberg data.
The former president's brand has also been negatively affected by his ties to the Capitol siege. Schiffer told Insider even Trump's most loyal supporters will not be able to help him recover.
His loyalists "were not in many ways his core buyers," Schiffer told Insider, noting that "many are not of high income."
Trump may be able to monetize his MAGA crowd in other ways, Schiffer said, such as creating a blog or newsletter or holding ticketed events, but these events won't make up for the larger revenue lost through his hotels, restaurants, and golf clubs.
Following the attack, the PGA of America decided against hosting its annual tournament at Trump's golf club. Many other companies have also severed ties with Trump since his second impeachment.
Trump's book sales have also plummeted since his presidency ended, with revenue from the sales down 87% in the past five years, Bloomberg reports.
Trump donated his $400,000 salary as president, but made about $1.6 billion from 2016 to 2020. Since becoming president in 2016, Trump fell 77 places in Forbes' ranking of the 400 richest Americans four years later.
In 2020, Forbes estimated that Trump dropped over $1 billion during the pandemic, as his net worth dropped to $2.1 billion, while the pandemic shook the commercial real estate market.
Most presidents see spikes in their net worth following their presidency. Public appearances, book and brand deals often allow former presidents to rake in millions, but Trump's brand may have taken too great of a hit.
Trump might be one of few president's to continue to see his net worth fall following his presidency.
