Richest five amass vast wealth, imperilling global poverty eradication: Oxfam
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A recent report by the international aid organization Oxfam has exposed the deepening chasm between the world's wealthiest individuals and the rest of the population. The study, titled "Inequality Inc.," discloses that the fortunes of the planet's five richest men have more than doubled to a staggering $869 billion since 2020, while nearly 5 billion people – constituting the world's poorest 60% – have experienced financial setbacks.
The findings, released just as the global elite convenes in Davos, Switzerland, for the annual World Economic Forum, paint a troubling picture of escalating inequality, exacerbated by the economic fallout of the COVID-19 pandemic. Oxfam predicts that if current trends persist, the world is on track to witness its first trillionaire within the next decade, underscoring the staggering concentration of wealth in the hands of a privileged few.
The report highlights a staggering increase in wealth for the world's billionaires, amounting to a jaw-dropping $3.3 trillion since 2020, growing three times faster than the rate of inflation. The wealth of the poorest 60% has declined by 0.2% in real terms over the same period, exposing a harsh reality of economic disparity.
Notably, seven out of 10 of the world's largest corporations are shown to have a billionaire at the helm as CEO or principal shareholder, despite widespread stagnation in living standards for millions of workers globally.
Oxfam's report, compiled using data from research company Wealth X, reveals that the combined wealth of the top five billionaires – Elon Musk, Bernard Arnault, Jeff Bezos, Larry Ellison, and Mark Zuckerberg – has surged by $464 billion, marking a staggering 114% increase.
The report sheds light on the disparity in the business world as well, emphasizing that business profits have soared significantly amid a cost-of-living crisis, with 148 of the world's biggest corporations raking in a total net profit of $1.8 trillion in the year to June 2023 – a staggering 52% jump compared to the average net profits in the years 2018-21.
Amid these revelations, Oxfam calls for urgent action to address the wealth gap, proposing a wealth tax to rebalance the scales between workers and wealthy company owners. According to the report, a wealth tax on British millionaires and billionaires could generate £22 billion annually for the government, if applied at a rate of 1% to 2% on net wealth above £10 million.
Oxfam concludes by cautioning that if this trend persists, it will take another 229 years to eradicate global poverty, reflecting a deeply concerning prognosis for the future. The report urges governments worldwide to adopt policies that promote fair taxation and equitable support for everyone, challenging the current system that perpetuates extreme wealth concentration.
