The world’s richest 1 per cent have accumulated $42 trillion in new wealth over the past decade, according to a new analysis by Oxfam. This figure is nearly 34 times more than the combined wealth of the entire bottom 50 per cent of the global population.
Oxfam, a British-founded confederation of 21 independent non-governmental organisations focused on alleviating global poverty, revealed these findings as taxes on the wealthy have reached historic lows. The analysis highlighted that the average wealth per person in the top 1 per cent rose by nearly $400,000 in real terms over the last decade, compared to a mere $335—less than nine cents a day—for a person in the bottom half of the income spectrum.
In a statement released Thursday on its website, Oxfam titled the report, “Top 1 per cent bags over $40 trillion in new wealth during the past decade as taxes on the rich reach historic lows.” The announcement precedes the third meeting of G20 Finance Ministers and Central Bank Governors in Rio de Janeiro, Brazil, where a groundbreaking global deal to increase taxes on the super-rich is expected to be discussed. This proposal is supported by the Brazilian G20 Presidency and countries such as South Africa, Spain, and France, amidst growing public demand for measures to address extreme inequality and ensure that the wealthy contribute their fair share.
Max Lawson, Oxfam International’s Head of Inequality Policy, criticized the extreme inequality and government inaction, urging G20 governments to demonstrate political will by implementing higher taxes on the super-rich to address the disparity. “Inequality has reached obscene levels, and until now, governments have failed to protect people and the planet from its catastrophic effects,” Lawson stated. “The richest one per cent of humanity continues to fill their pockets while the rest are left to scrabble for crumbs. Momentum to increase taxes on the super-rich is undeniable, and this week is the first real litmus test for G20 governments. Do they have the political will to strike a global standard that puts the needs of the many before the greed of an elite few?”
Oxfam’s research also revealed that less than eight cents of every dollar raised in tax revenue in G20 countries now comes from taxes on wealth. Over the past four decades, the share of income of the top 1 per cent of earners in G20 countries has risen by 45 per cent, while top tax rates on their incomes were cut by roughly a third. Globally, billionaires have been paying a tax rate equivalent to less than 0.5 per cent of their wealth, with their fortunes rising by an annual average of 7.1 per cent over the same period. To curb this extreme wealth, Oxfam suggests an annual net wealth tax of at least 8 per cent. G20 countries are home to nearly four out of five of the world’s billionaires.
