Super-rich increase share of world's income
The share of wealth owned by the world's richest people soared during the Covid pandemic, a major study on inequality has found.
The World Inequality Report said that 2020 saw the steepest increase in billionaires' wealth on record.
Meanwhile, 100 million people sank into extreme poverty, the report from the Paris-based World Inequality Lab said.
The richest 10% of the population now takes 52% of global income and the poorest half just 8%, it said.
The 228-page report, whose authors are part of a group founded by renowned economist Thomas Piketty, also said that since 1995, billionaires' wealth had risen from 1% to 3%.
"This increase was exacerbated during the Covid pandemic. In fact, 2020 marked the steepest increase in global billionaires' share of wealth on record," the report said.
The world's richest 1% has taken more than a third of all additional wealth accumulated since 1995, while the bottom 50% captured just 2%.
"After more than 18 months of Covid-19, the world is even more polarised," Lucas Chancel, co-director of the World Inequality Lab, based at the Paris School of Economics, told the Agence France-Presse news agency.
"While the wealth of billionaires rose by more than €3.6tn (£3tn), 100 million more people joined the ranks of extreme poverty," said Mr Chancel, noting that extreme poverty had been previously falling for 25 years.
The report concluded that:
An average adult individual earned €16,700 per year in 2021 and the average adult owns €72,900
On average, an individual from the top 10% of the global income distribution earns €87,200 per year
An individual from the poorest half of the global income distribution makes just €2,800
The poorest half of the global population barely owns any wealth, possessing just 2% of the total
The richest 10% of the global population own 76% of all wealth.
The researchers found that the world's 52 richest individuals saw the value of their wealth grow by 9.2% per year for the past 25 years, well above less wealthy social groups.
Women's share of total global income from work was less than 35%, up from near 30% in 1990 but still short of parity with men.
Tax the rich
Europe was the world's most equal region, with the richest 10% taking 36% of the income share. The Middle East and North Africa was the most unequal, with the wealthiest 10% taking 58% of income.
During the pandemic, state intervention by more prosperous nations, such as furlough and benefits payments, was vital to keep more people from sinking into poverty. The report notes that poorer countries did not have the resources to prop up income and save jobs.
To help redress the imbalance, the economists call for a "modest progressive wealth tax on global multi-millionaires" in order to redistribute wealth. They also call for tougher action on tax evasion.
"Given the large volume of wealth concentration, modest progressive taxes can generate significant revenues for governments," the report said.
Source: BBC
Trending News
Feeding grants'll be paid directly to school heads in my next gov’t – Mahama promises
11:02Francis-Xavier Sosu rallies support to aid Madina market fire victims
19:30Man allegedly shoots wife in Adaklu
15:01NDC Youth Wing expresses solidarity with nurses and midwives
10:08Running mate: Ashanti NPP youth organisers distance themselves from Napo’s bid
10:11‘I can only thank you for your dumsor patience’ – Akufo-Addo to Ghanaians
14:50I'll ban all mining in water bodies, forest reserves – Kyerematen
12:042024 polls: 'Bawumia in pole position to take over from me' – Akufo-Addo
03:45Digitalisation has cut demand for sex from women for public services – Bawumia
11:17FGBMFI to honour Speaker Bagbin with distinguished Footprints Award for political leadership
09:11