Last year Oxfam announced that 62 people had as much wealth as half the world. They were wrong. The right number was only 9. One worry from last year was that the inequality would continue to increase, and it did. Now 8 people have as much wealth as half the planet. As a system, that is a sign of an instability.
“Nor are the spoils of the world’s wealthiest down to just hard work. There is little evidence of meritocracy in today’s playground for the rich. More than half the world’s billionaires either inherited their wealth or accumulated it through industries prone to corruption and cronyism.” – World Economic Forum
Ideologies aside, when a critical resource is increasingly concentrated and effectively removed from the operation of the system, the system necessarily is constrained. As wealth inequality increases, less wealth is flowing through economies, particularly through individual’s personal finances. The poor get poorer because there is less money for everyone. Currently, there is no systemic correction in place and some proposed policies are actively encouraging greater inequality. The greatest unknown is how long the current financial system and economy can be sustained in such an environment.
(Click on the graph for the link.)