Wealth Of The World’s 5 Richest Men Doubled Since 2020, Poor Get Poorer

A report by Oxfam reveals that the combined fortunes of the world's five wealthiest individuals have more than doubled to $869 billion since 2020. In contrast, the world's poorest 60%, nearly 5 billion people, have experienced financial losses during the same period.

The report, titled "Inequality Inc.," is released as the world's richest individuals convene for the annual World Economic Forum meeting in Davos, Switzerland.

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World's first trillionaire within a decade??

Oxfam warns that the wealth gap is likely to widen, leading to the world's first trillionaire within a decade. Moreover, the report predicts that if current trends persist, global poverty will not be eradicated for another 229 years.

Highlighting the surge in inequality since the COVID-19 pandemic, Oxfam notes that billionaires' wealth has grown three times faster than the rate of inflation, reaching $3.3 trillion (?2.6 trillion) more than in 2020. Seven out of 10 of the world's largest corporations have a billionaire as CEO or principal shareholder, despite stagnating living standards for millions of workers globally.

Top five richest mens' wealth rose by 114%

Using data from Wealth X and Forbes, the report reveals that the combined wealth of the top five richest individuals – Elon Musk, Bernard Arnault, Jeff Bezos, Larry Ellison, and Mark Zuckerberg – increased by $464 billion, or 114%, while the total wealth of the poorest 4.77 billion people declined by 0.2% in real terms.

“People worldwide are working harder and longer hours, often for poverty wages in precarious and unsafe jobs,” the report says. “Across 52 countries, average real wages of nearly 800 million workers have fallen. These workers have lost a combined $1.5tn over the last two years, equivalent to 25 days of lost wages for each worker.”??

The report also notes a sharp rise in business profits, with 148 of the world's largest corporations generating $1.8 trillion in total net profits in the year to June 2023, a 52% increase compared to average net profits in 2018-21.

Oxfam calls for a wealth tax to address the imbalance between workers and wealthy corporate leaders. The proposed tax on British millionaires and billionaires could generate ?22 billion for the exchequer annually if applied at a rate of 1% to 2% on net wealth above ?10 million.

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Advocates for a wealth tax emphasise its need

Advocates for a wealth tax emphasise the need to rectify the disparity between wealth and income taxes.

Julia Davies, a founding member of Patriotic Millionaires UK, supports the call for a wealth tax, stating that such levies are "minuscule" compared to income taxation.

“Just imagine what ?22bn a year invested in public services and infrastructure could pay for; improving the lives of every one of us who live in the UK and providing our elderly, young and vulnerable with the care and support they need and deserve,” she said.

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Oxfam said the most recent Gini index – which measures inequality – found that global income inequality was now comparable with that of South Africa, the country with the highest inequality in the world.

The world’s richest 1% own 59% of all global financial assets – including stocks, shares and bonds, plus stakes in privately held business. In the UK, the richest 1% own 36.5% of all financial assets, with a value of ?1.8tn.

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