The world’s richest one per cent of people increased their wealth by $42 trillion over the past decade, roughly 34 times more than the wealth of the entire bottom 50 per cent of the world’s population, according to a new analysis from Oxfam. The organisation released the new report ahead of the third meeting of G20 finance ministers and central bank governors in Brazil. It said that after adjusting for inflation, the average net wealth of the elite rose by nearly $400,000 per capita, compared to $335 for the bottom half of residents.
“Inequality has reached obscene levels, and so far governments have failed to protect people and the planet from its devastating impacts,” said Max Lawson, Oxfam International’s inequality policy chief. “The richest one per cent of humanity continues to fill their pockets while the rest of us grapple for crumbs,” he added.
Oxfam’s research also found that the share of income held by the top 1 per cent of earners in G20 countries has risen by 45 per cent over four decades, while top tax rates on their income have been cut by almost a third.
“Globally, billionaires pay taxes equivalent to less than 0.5 per cent of their wealth. Their wealth has grown by an average of 7.1 per cent annually over the past four decades, and an annual net wealth tax of at least 8 per cent would be needed to curb billionaires’ enormous wealth,” the report said. “Nearly four out of five of the world’s billionaires live in G20 countries.”
This latest analysis comes at a time when the advocacy group, along with several partners, is calling on G-20 leaders to raise taxes on the ultra-wealthy.
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As part of its G20 presidency, the Brazilian government recently commissioned a study on raising taxes on the wealthy. It found that a 2 percent minimum tax on the wealth of global billionaires would raise $200 to $250 billion annually from about 3,000 taxpayers.
“The momentum to raise taxes on the ultra-rich is undeniable, and this week is the first real litmus test for G20 governments,” Lawson said. “Do they have the political will to set a global standard that prioritises the needs of the many over the greed of an elite few?”
It is noteworthy that Oxfam regularly releases reports highlighting global inequality and insists on changes to provide equal opportunities.