Global Inequality Increases

The trend continues. 27% of the wealth growth from 1980 has gone to the top 1%. Even within that group, the top 0.1% account received 13% of the global wealth growth. That top 0.1% gained as much as the poorest 3.5 billion people combined. As recently as the early 1990s, the top 1% and the middle 40% held about the same wealth, ~ 27%. Now, the top 1% has about 33% while the middle 40% hasn’t changed. That suggests the top 1% gained their wealth from the poorest people. The US is one of the countries with the greatest inequality. (Russia is the other one.)

“The US’s richest 1% accounted for 39% of the nation’s wealth in 2014 [the latest year available], up from 22% in 1980.” – The Guardian

Tax havens and current tax laws and policies will continue to grow the disparity. Haven protections and tax laws and policies that favor the rich will accelerate the disparity. As wealth accumulates and concentrates less is available for the economy and those who have less or no excess. At some point, the trend becomes unsustainable. The longer it is sustained, the more likely the inevitable correction will be drastic and dramatic.

“World’s Richest 0.1% Have Boosted Their Wealth By As Much As Poorest Half” – The Guardian