World's top 5 billionaires double wealth since 2020: Oxfam

Post by: Dr. Amrinder Pal Singh

The wealth gap between the world's richest individuals and the rest of the global population has reached unprecedented levels, with the top five billionaires experiencing a staggering increase in their fortunes, according to a report by Oxfam cited by CNN. The annual inequality report, released just before the World Economic Forum meeting in Switzerland, reveals that the combined wealth of the world's five wealthiest individuals, namely Elon Musk, Bernard Arnault, Jeff Bezos, Larry Ellison, and Warren Buffett, has more than doubled since 2020, soaring by 114% to a staggering $869 billion. This surge in wealth is three times faster than the rate of inflation.

In stark contrast, the report discloses a distressing trend for the majority of the global population, as the total wealth of the poorest five billion people, constituting 60% of the world's populace, has declined by 0.2% in real terms during the same period. This alarming divergence in financial trajectories raises concerns about the growing disparity between the rich and the poor on a global scale.

The report further predicts that if the current wealth accumulation trends persist, the world is on track to witness its first trillionaire within the next decade. However, despite these astronomical individual fortunes, the report paints a grim picture of global poverty, suggesting that it will persist for another 229 years.

The influence of billionaires extends beyond individual wealth accumulation, as the report highlights that seven out of ten of the world's largest public companies either have a billionaire as the CEO or as the principal shareholder. Additionally, the top 1% of the global population is shown to possess a disproportionate share of financial assets, holding 43% of the world's total. Regionally, the wealth distribution is stark, with the top 1% owning 32% of financial wealth in the United States, 50% in Asia, 48% in the Middle East, and 47% in Europe.

Elon Musk, the CEO of Tesla, SpaceX, and several other companies, stands out with an extraordinary increase in wealth, multiplying it by 737% from March 2020 to reach $245.5 billion by the end of November. Similarly, Bernard Arnault, the chairman of the French luxury goods giant LVMH, and his family grew their net worth by 111% to $191.3 billion. Jeff Bezos, the founder of Amazon, witnessed a 24% increase, accumulating a fortune of $167.4 billion, while Larry Ellison, the founder of Oracle, experienced a 107% growth, reaching a wealth total of $145.5 billion. Warren Buffett, the CEO of Berkshire Hathaway, saw his net worth rise by 48% to $119.2 billion.

The Oxfam report sheds light on the role of corporate power in exacerbating inequality. It contends that corporate practices, including squeezing workers, enriching wealthy shareholders, tax avoidance, and privatization, contribute to widening wealth gaps globally. The private sector, according to the report, has consistently advocated for lower corporate tax rates, more loopholes, reduced transparency, and other measures aimed at minimizing companies' contributions to public finances.

Highlighting a concerning trend, the report notes a significant decline in corporate taxes in OECD countries, dropping from 48% in 1980 to 23.1% in 2022. This reduction in corporate tax rates further underscores the influence and lobbying power of corporations in shaping global economic policies to their advantage.

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