The wealth of the 85 richest people equals that of half the world’s population, says development charity Oxfam.
Global inequality has increased to the extent that the £1 trillion combined wealth of the 85 richest people is equal to that of the poorest 3.5 billion – half of the world’s population – according to a new report from development charity Oxfam.
Oxfam chief executive Winnie Byanyima said: “It is staggering that in the 21st century, half of the world’s population – that’s three and a half billion people – own no more than a tiny elite whose numbers could all fit comfortably on a double-decker bus.
“We cannot hope to win the fight against poverty without tackling inequality. Widening inequality is creating a vicious circle where wealth and power are increasingly concentrated in the hands of a few, leaving the rest of us to fight over crumbs from the top table.
“In developed and developing countries alike we are increasingly living in a world where the lowest tax rates, the best health and education and the opportunity to influence are being given not just to the rich but also to their children.
Indeed, this is staggering. Just think about it for a second. Just 85 of the wealthiest people control the same amount of wealth as the poorest 3.5 Billion – half of world’s population.
At least a part of me wants to say, “So what? Work your ass off and become part of the elite.” Yet, after starting a number of businesses and being a part of the investment community, I now know it is a lot easier said than done. It takes favorable circumstances and luck to get anywhere close to that level. In other words, for most of us, approaching the pinnacle of wealth is nothing but a pipe dream.
That is why I am starting to shift my point of view towards the view shared by both Warren Buffett and Bill Gates. They argue that the taxation structure in place is disproportionately setup to favor the rich. That should not be a surprise to anyone as the system is setup by the rich. The problems begin when we have a situation where 85 people control more wealth than the lowest 3.5 billion people. It’s bad on two fronts.
First, it stagnates the economy. The accumulated wealth held by so very few people is not being properly allocated to benefit the overall economy. For the most part, it just sits there accumulating interest. Second, it creates social unrest. If history teaches us anything, eventually, this type of a “social setup” leads to revolutions or worst, wars.
What is the answer? I am not sure, but this cannot continue over an extended period of time. Some changes must occur.
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