Oxfam, a leading global charity, has issued a stark warning about the escalating wealth inequality that could see the emergence of at least five trillionaires within the next decade. The organization's recent report reveals that the combined wealth of the world's richest individuals soared from $13 trillion to $15 trillion in just one year. The alarming trend highlights the widening gap between the ultra-wealthy and those living in poverty, with the richest 1% owning nearly 45% of global wealth.
The report underscores a troubling reality where 44% of the global population lives below the World Bank's poverty line of $6.85 per day. Since 1990, the number of people living in poverty has shown little improvement. Oxfam's findings point to a rapid acceleration in the accumulation of wealth among billionaires, marking last year as the second largest annual increase in billionaire wealth since records began.
A significant portion, 60%, of billionaire wealth now stems from inheritance, monopolies, or crony connections, rather than individual enterprise. This has led to increased power among billionaires, drawing attention to the issue of untaxed wealth perpetuating a new aristocracy. Oxfam International Executive Director Amitabh Behar commented on the situation:
"The capture of our global economy by a privileged few has reached heights once considered unimaginable" – Oxfam International Executive Director Amitabh Behar
Oxfam is urging governments worldwide to address this inequality by ensuring that the incomes of the top 10% do not surpass those of the bottom 40%. The report also highlights that Elon Musk is on track to become the world's first trillionaire by 2027, with his current net worth estimated at approximately $440 billion according to the Bloomberg Billionaires Index.
The charity's "Takers Not Makers" report coincides with the return of billionaire Donald Trump to the White House and the gathering of over 3,000 leaders from more than 130 countries at the World Economic Forum's annual meeting in Davos. Behar emphasized the detrimental effects of concentrated wealth:
"So many of the so-called 'self-made' are actually heirs to vast fortunes, handed down through generations of unearned privilege. Untaxed billions of dollars in inheritance is an affront to fairness, perpetuating a new aristocracy where wealth and power stays locked in the hands of a few" – Oxfam's Behar
Outgoing U.S. President Joe Biden also commented on this pressing issue:
"People should be able to make as much as they can, but pay — play by the same rules, pay their fair share in taxes" – Outgoing U.S. President Joe Biden