Over the past decade, the richest 1 percent of the world’s population have accumulated a staggering $42 trillion in new wealth. This amount is nearly 34 times greater than what the bottom 50 percent of the world’s population has gained, according to new analysis by Oxfam. As the G20 Finance Ministers and Central Bank Governors gather for their third meeting in Rio de Janeiro, Brazil, this stark disparity is drawing attention and calls for action.
Advertisement:
Wealth Inequality Reaches New Heights
Globally, the average wealth per person in the top 1 percent has risen by nearly $400,000 in real terms over the past decade.
In stark contrast, a person in the bottom half of the global population has seen an increase of just $335, or less than nine cents a day. This glaring disparity underscores the urgent need for measures to address extreme wealth concentration.
Wealth Inequality in Australia
In Australia, the disparity is equally alarming. Since 2020, Australian billionaires have seen their wealth surge by 70.5 percent, translating to an increase of $120 billion.
This growing inequality has not gone unnoticed by the Australian public. A recent YouGov poll commissioned by Oxfam reveals that 76 percent of Australians are concerned about the widening wealth gap between the ultra-rich and everyday people.
74 percent support the implementation of a wealth tax on individuals with assets exceeding $50 million, and 63 percent believe that the proceeds from such a tax should be used to reduce inequality.
Polling data consistently shows strong support for increasing taxes on the richest individuals. In the United States, the majority of people favor higher taxes on the wealthy.
In other countries, the support is even more pronounced: 80 percent of Indians, 85 percent of Brazilians, and 69 percent of people across 34 African countries support such measures.
Wealthy Acknowledge the Issue
A significant portion of the wealthy themselves acknowledge the issue. Nearly three-quarters of millionaires polled in G20 countries support higher taxes on wealth, and over half believe that extreme wealth poses a threat to democracy.
72 percent of these millionaires think that extreme wealth facilitates the purchase of political influence, highlighting the pervasive concern about the intersection of wealth and power.
This widespread support underscores a global recognition of the need to address economic inequality.
G20 Meeting and the Push for Wealth Taxes
This week, G20 Finance Ministers are expected to lay the groundwork for a groundbreaking global agreement to increase taxes on the super-rich. This initiative, championed by the Brazilian G20 Presidency and supported by countries such as South Africa and France, comes amid a growing public demand for measures to curb extreme inequality and ensure that the wealthy contribute their fair share.
“Inequality in Australia and across the globe has reached obscene levels, and until now governments have failed to protect people and the planet from its catastrophic effects,” stated Oxfam Australia Chief Executive Officer Lyn Morgain
“The richest one percent of humanity continues to fill their pockets while the rest are left to scrap for crumbs.”
The call to tax the ultra-rich is not just a moral imperative but an economic necessity to address the growing disparity between the wealthiest individuals and the rest of the population.
On July 24th, 2024, prominent groups such as Oxfam, Avaaz, the Patriotic Millionaires, TaxMeNow, 350.org, the Fight Inequality Alliance, and WeMoveEurope will present petitions with over 1.5 million signatures to Brazilian Finance Minister Fernando Haddad in Rio de Janeiro, urging G20 leaders to implement higher taxes on the ultra-rich.
Earlier this month, nearly 20 former heads of state and government from G20 and high-income countries urged current G20 leaders, including US President Joe Biden, German Chancellor Olaf Scholz, and UK Prime Minister Keir Starmer, to endorse a “new global deal to tax the world’s ultra-rich individuals.”
This open letter highlights the growing consensus among global leaders and organizations that the concentration of wealth in the hands of a few poses significant challenges to economic fairness and social stability.
The War on Fair Taxation
A “war on fair taxation” has led to the collapse of tax rates on the wealth and income of the richest individuals. Oxfam’s calculations reveal that less than eight cents of every dollar raised in tax revenue in G20 countries comes from taxes on wealth.
Oxfam’s research shows that over the past four decades, the share of income going to the top 1 percent of earners in G20 countries has increased by 45 percent, while the top tax rates on their incomes have been cut by roughly a third.
Globally, billionaires are paying a tax rate equivalent to less than 0.5 percent of their wealth. Over the last four decades, their fortunes have grown by an annual average of 7.1 percent.
To curb this extreme wealth accumulation, an annual net wealth tax of at least 8 percent would be necessary. It’s noteworthy that G20 countries are home to nearly four out of five of the world’s billionaires.
As the G20 leaders convene in Rio de Janeiro, the momentum to increase taxes on the ultra-rich is undeniable. This week serves as a crucial test for G20 governments to demonstrate their political will to establish a global standard that prioritizes the needs of the many over the greed of an elite few.
The time has come for a concerted effort to address the growing wealth inequality that threatens social stability and economic fairness worldwide.
Circular economy – Further reading
A Circular Economy Handbook: How to Build a More Resilient, Competitive and Sustainable Business by Catherine Weetman
The Circular Economy: A User’s Guide by Walter R Stahel
Buy And Sell Second-Hand Goods: How To Turn Secondhand Items Into Fast Cash & Long-Term Investments: Methods To Make You Money, 2021 by Zoila Monger
Related stories
The Circular Economy: A Sustainable Path Forward
Former Coal, Oil and Gas Workers Transition to Net Zero Jobs
Nesting Boxes: Creative Upcycling for Wildlife Conservation
Using Dish Sponges as Garden Beds to Grow New Life
AI driving a sustainable fashion industry
Massive Corporate Profits Amid Cost of Living Crisis
Global Food Production Dilemma: Grow & Buy Local
Can you rent out a Tiny Home, Granny Flat, Transportable building or Caravan
Do you want to live on an Intentional Community?
