The World Economic Forum’s annual meeting in Davos kicked off today, featuring Oxfam’s Economic Survey, revealing a rapid surge in global economic inequality. The combined wealth of the world’s top five richest individuals has doubled in the past 13 years, surpassing the GDP growth of several major countries in the last four years. According to the report, the collective wealth of the top five billionaires skyrocketed from $405 billion in 2020 to a staggering $869 billion last year. Interestingly, during this period, nearly five billion people worldwide witnessed a decline in their wealth.
Published under the title ‘Inequality Inc.,’ the report claims that since 2020, billionaires collectively gained an additional $3.3 trillion in wealth. Amid widespread economic challenges, exacerbated by the COVID-19 pandemic, the report sheds light on a concerning trend of increasing wealth concentration. It suggests that the world might soon witness its first trillionaire if current trends persist, while poverty may persist for the next 229 years.
Insights from Oxfam Officials
Amitabh Behar, Executive Director of Oxfam International, noted that the world is entering a decade of division, with billions facing economic shocks from pandemics, currency fluctuations, and wars. While the fate of the billionaires is on the rise, Behar emphasized that this inequality is no accident. The billionaire class ensures corporations reward them with more wealth at the expense of everyone else. He stated that 148 top corporations earned $1.8 trillion in profit, a 52% increase over the three-year average, enabling shareholders to reap substantial rewards. In contrast, millions of workers faced livelihood crises due to actual wage cuts amid currency devaluation.
The report highlights the significant wealth growth of individuals like Tesla’s CEO Elon Musk, LVMH’s Bernard Arnault, Amazon’s Jeff Bezos, Oracle’s co-founder Larry Ellison, and investor Warren Buffett. However, only 0.4% of the world’s 1,600 largest corporations have committed to paying living wages to workers and supporting their full value chain.
Impact of Currency Devaluation on Wage Stability
The report delves into the disproportionate effects of currency devaluation and wage stagnation. It reveals that approximately 800 million workers globally experienced a real wage decrease. This loss equates to the average annual loss of 25 days’ income per employee. Despite this, the profits of the top 148 corporations witnessed a 52% growth over the three-year average, ensuring substantial compensation for shareholders.
Reported Solutions
Presented at the World Economic Forum, Oxfam International’s report not only outlines the issues but also proposes solutions. Oxfam advocates for imposing wealth taxes on millionaires and billionaires, potentially generating an annual revenue of $1.8 trillion. Additionally, the charity calls for setting limits on CEO salaries and eliminating private monopolies. The report includes proposals such as breaking monopolies, imposing taxes on extra profits and wealth, and exploring options for shareholder control, like employee ownership.
