The world’s wealthiest people only take up 1% of the population. A massive amount of the global wealth goes into this small number, and analysts expect, the amount will grow even more significant in the coming years. If we don’t do anything about the evident inequality, this 1% of the world’s richest people may own 2/3 of the globe’s wealth by 2030.
Inequality is only one of the major concerns at risk about this global imbalance. If the gap between the rich and the poor continues to extend further, anger and distrust among people worldwide could sprout from the uneven distribution of wealth.
The analysis came from the House of Commons library. The uneven swell of wealth started since the 2008 financial crash, and experts say, if the trends continue, the richest 1% will own 60% of the world’s riches by 2030. Even if the financial crash ends, the wealthiest people will still possess more than half of the world’s riches.
Ever since the financial crash, 1% of the world’s most affluent population has growing wealth at a rapid rate of 6% a year. Compared to the remaining 99% of the people, which have an increasing net worth at 3% yearly, the growth rate is of the wealthiest is much faster. If the pace carries on in the coming years, the top 1% will hold the globe’s wealth amounting to $305tn (£216.5tn) from $140tn that they have today.
According to analysts, the contributing factors that are behind the wealth swell among the richest 1% are income inequality, higher amounts of savings, and asset accumulation. The wealthiest people invest in businesses, stocks and other financial resources that all lead to gain of benefits, eventually, the uneven share of the global riches.
Based on a poll gathered by Opinium, voters believe the inequality may result in issues of influence. When asked which group would have the strongest influence by 2030, the poll showed that 34% of the voters believe it will be the wealthiest people, while 28% thinks it will be the national governments. The survey depicts pandemic distrust, which the 41% of the investigation believes could be the root of corruption or as per 43% of the survey, the “super-rich enjoying unfair influence on government policy.”
The survey was authorized by the previous Labour cabinet minister, Liam Byrne, as part of the union of the world’s academics, MPs, business leaders, civil society leaders, trade groups, who all aim to address the issue.
Actor Michael Sheen is also one of the people who supported the call. Sheen had set aside his Hollywood career to lead a campaign against high-interest credit providers.
Global leaders hope to intensify the pressure in addressing the problem in the gathering of the G20 group of nations in the drawing summit in Buenos Aires in November. Byrne organized the first-ever conference as he believes, the inequality is “now at a tipping point.”
“If we don’t take steps to rewrite the rules of how our economies work, then we condemn ourselves to a future that remains unequal for good,” Byrne said in a statement with The Guardian. “That’s morally bad, and economically disastrous, risking a new explosion in instability, corruption, and poverty.”
The call has gained attention and support across the political divide. According to Tory MP, George Freeman and the prime minister’s policy board said in a statement with The Guardian, “While mankind has never seen such income inequality, it is also true that mankind has never experienced such rapid increases in living standards. Around the world billions of people are being lifted out of poverty at a pace never seen before. But the extraordinary concentration of global wealth today – fuelled by the pace of technological innovation and globalisation – poses serious challenges.
“If the system of capitalist liberal democracy which has triumphed in the west is to pass the big test of globalisation – and the assault from radical Islam as well as its own internal pressures from post-crash austerity – we need some new thinking on ways to widen opportunity, share ownership and philanthropy. Fast.”
The group believes the keys to equality are increasing wages and improving the capital markets to balance the distribution of wealth.
Professor of geography at the University of Oxford, Danny Dorling, said the 2030 presumption is realistic.
“Even if the income of the wealthiest people in the world stops rising dramatically in the future, their net worth will still grow for some time,” Dorling said in statement with the The Guardian. “The last peak of income inequality was in 1913. We are near that again, but even if we reduce inequality now it will continue to grow for one to two more decades.”
This image shows the current trend which doesn’t look to be changing any time soon :