Every few years of so, there is a declaration by one organisation or another
(Oxfam, or the Credit Suisse bank for example), that all the worlds wealth is falling in to the hands of the few, at the expense of the many. And while this is certainly true in a literal sense, its also compounded by factors that make it seem harsher than reality.
This year, Oxfam have updated their report of last year that
the 85 richest people on the planet have the same wealth as the poorest 50%
(3.5 billion people). Now the figure has risen
(or fallen depending upon your point of view), to the 80 richest people, having the same wealth as the poorest 50%.
According to their calculations, pretty soon the wealthiest 1% will also soon own more than the rest of the world's population combined, with their research indicating that the total share of the world's wealth owned by the richest 1%, increased from 44% in 2009, to 48% last year, and that its expected that the wealthiest 1% will own more than 50% of the world's wealth by 2016.
Even outside the top 1%, global inequalities indicate that of the wealth not owned by the richest 1%, 52% is owned by those in the richest 20%. So the remaining 80% of the worlds population, accounts for just 5.5% of global wealth, and their average wealth was $3,851 (£2,544) per adult in 2014. That compares to an average wealth of $2.7m per adult for the elite 1%.
These figures are obtained by the simple method of totalling up the total wealth that was attributed to the poorer half of the world's population - less than 1% of the world's wealth, about $1.7tn (£1tn) via GDP reports etc. The by using the
'Forbes Rich List', and adding up all the wealth of the top billionaires until the figure of 1.7 trillion US dollars was achieved .... this was reached when adding the assets of the 85th richest person in the world
(according to Forbes). Using a similar method for the UK
(Forbes and The Times Rich List), you get the figure that the five richest families, have more wealth than the poorest 20%.
The idea that these super-rich individuals have so much wealth that it's making half the world poor is actually nonsense, as their wealth is not sitting in money piles in banks, its actually shared in physical factories, mines, agriculture, banking, shipping, stocks and shares etc, and its what employs people. In other words the idea of the rich just taking is a very simplistic world view .....
Even within these reports, its not all gloom and doom, as although this latest report echoes earlier reports, such as that by the
Credit Suisse bank, there are also differences
(perhaps reflecting the political nature of the Oxfam report).
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