Rich get richer as global inequality widens, exposes Oxfam

LONDON

Oxfam on Monday revealed that the world's five wealthiest individuals have seen their fortunes more than double from $405 billion to a staggering $869 billion since 2020.

The report, titled Inequality Inc., sheds light on the alarming rate of wealth accumulation by the elite, clocking in at $14 million per hour, while nearly five billion people around the globe find themselves sinking deeper into poverty.

As the super-rich gather in Davos for the annual World Economic Forum, Oxfam's report paints a bleak picture of a world heading toward its first trillionaire within a decade, while the eradication of poverty remains a distant goal—projected to take another 229 years.

"We’re witnessing the beginnings of a decade of division, with billions of people shouldering the economic shockwaves of pandemic, inflation and war, while billionaires’ fortunes boom. This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else," said Oxfam International interim Executive Director Amitabh Behar.

"Runaway corporate and monopoly power is an inequality-generating machine: through squeezing workers, dodging tax, privatizing the state, and spurring climate breakdown, corporations are funneling endless wealth to their ultra-rich owners," warned Behar.

- Billionaires now $3.3 trillion richer than in 2020

According to Oxfam, the past three years have witnessed an unprecedented surge in extreme wealth, with billionaires now $3.3 trillion richer than in 2020, growing three times faster than the rate of inflation.

Despite representing only 21% of the global population, wealthy countries in the Global North commandeer 69% of global wealth and host 74% of the world's billionaire wealth.

Wealth tax on rich could generate $1.8 trillion annually

Oxfam's findings also shed light on the skewed distribution of financial assets, revealing that the top 1% owns a staggering 43% of all global financial assets. This concentration of wealth extends across regions, with the richest holding 48% in the Middle East, 50% in Asia, and 47% in Europe.

The report further exposes the astounding profitability of major corporations, projecting a record-breaking year in 2023.

The world's 148 largest corporations raked in a combined $1.8 trillion in net profits in the year to June 2023—a staggering 52% increase compared to the average net profits from 2018 to 2021. However, the benefits of this financial windfall disproportionately flow to rich shareholders, with 82% of every $100 of profit going to them.

Notable figures highlighted in the report include Bernard Arnault, the second richest man globally, facing scrutiny for his luxury goods empire LVMH's alleged anti-competitive practices.

Aliko Dangote, Africa's wealthiest person, is also under the spotlight for holding a near-monopoly on cement in Nigeria, raising concerns about a new private monopoly in the oil sector.

Jeff Bezos, the founder of Amazon and the world's third richest person, faces a US government lawsuit accusing the tech giant of wielding "monopoly power" to hike prices, degrade service, and stifle competition.

Oxfam concludes its report with a call to action, urging governments to intervene and address the growing wealth gap. The organization advocates for revitalizing the state, reining in corporate power, and reinventing business to ensure a fairer distribution of wealth

The report proposes measures such as universal healthcare and education, breaking up monopolies, legislating for living wages, capping CEO pay, and implementing new taxes on the super-rich and corporations.

It estimates that a wealth tax on millionaires and billionaires could generate $1.8 trillion annually.