Read

Search form

Richest 1% on Target to Own Two-Thirds of All Wealth By 2030

Richest 1% on Target to Own Two-Thirds of All Wealth By 2030
Tue, 4/10/2018 - by Michael Savage
This article originally appeared on The Guardian

The world’s richest 1% are on course to control as much as two-thirds of the world’s wealth by 2030, according to a shocking analysis that has lead to a cross-party call for action.

World leaders are being warned that the continued accumulation of wealth at the top will fuel growing distrust and anger over the coming decade unless action is taken to restore the balance.

An alarming projection produced by the U.K. House of Commons library suggests that if trends seen since the 2008 financial crash were to continue, then the top 1% will hold 64% of the world’s wealth by 2030. Even taking the financial crash into account, and measuring their assets over a longer period, they would still hold more than half of all wealth.

Since 2008, the wealth of the richest 1% has been growing at an average of 6% a year – much faster than the 3% growth in wealth of the remaining 99% of the world’s population. Should that continue, the top 1% would hold wealth equating to $305 trillion (£216.5 trillion) – up from $140 trillion today.

Analysts suggest wealth has become concentrated at the top because of recent income inequality, higher rates of saving among the wealthy, and the accumulation of assets. The wealthy also invested a large amount of equity in businesses, stocks and other financial assets, which have handed them disproportionate benefits.

New polling by Opinium suggests that voters perceive a major problem with the influence exerted by the very wealthy. Asked to select a group that would have the most power in 2030, most (34%) said the super-rich, while 28% opted for national governments. In a sign of falling levels of trust, those surveyed said they feared the consequences of wealth inequality would be rising levels of corruption (41%) or the “super-rich enjoying unfair influence on government policy” (43%).

The research was commissioned by Liam Byrne, the former Labour cabinet minister, as part of a gathering of MPs, academics, business leaders, trade unions and civil society leaders focused on addressing the problem.

The actor Michael Sheen, who has opted to scale back his Hollywood career to campaign against high-interest credit providers, was among those supporting the calls.

The hope is to create pressure for global action when leaders of the G20 group of nations gather for a summit in Buenos Aires in November. Byrne, who organized the first OECD global parliamentary conference on inclusive growth, said he believed global inequality was “now at a tipping point.”

“If we don’t take steps to rewrite the rules of how our economies work, then we condemn ourselves to a future that remains unequal for good,” he said. “That’s morally bad, and economically disastrous, risking a new explosion in instability, corruption and poverty.”

In a sign of the concern about the accumulation of wealth in the hands of so few, the move has gained support from across the political divide.

George Freeman, the Tory MP and former head of the prime minister’s policy board, said: “While mankind has never seen such income inequality, it is also true that mankind has never experienced such rapid increases in living standards. Around the world billions of people are being lifted out of poverty at a pace never seen before. But the extraordinary concentration of global wealth today – fuelled by the pace of technological innovation and globalisation – poses serious challenges.

“If the system of capitalist liberal democracy which has triumphed in the west is to pass the big test of globalization – and the assault from radical Islam as well as its own internal pressures from post-crash austerity – we need some new thinking on ways to widen opportunity, share ownership and philanthropy. Fast.”

Demands for action from the group include improving productivity to ensure wages rise and reform of capital markets to promote greater equality.

Danny Dorling, professor of geography at the University of Oxford, said the scenario in which the super-rich accumulated even more wealth by 2030 was a realistic one.

“Even if the income of the wealthiest people in the world stops rising dramatically in the future, their wealth will still grow for some time,” he said. “The last peak of income inequality was in 1913. We are near that again, but even if we reduce inequality now it will continue to grow for one to two more decades.”

Originally published by The Guardian

Sign Up

Article Tabs

Iceland democracy, digital revolution, Icelandic Constitution, bank bailouts, Pirate Party

Icelanders to their credit have twice peacefully ousted governments, they are world leaders in transparency laws and digital freedom, and they decided not to bail out its failed banks.

169

This week, a big step forward in the fight against Monsanto and glyphosate... and water protectors Red Fawn Fallis and Michael Little Feather Giron

Roadmap to Public Banking, Public Banking Institute. © 2013 Christine Walker

To succeed, the public banking movement needs to be more than a good idea. We need supporters to number in the tens of thousands – for if there is not unyielding public demand, there will be no public bank.

U.K. Trump protests, Donald Trump, Theresa May, Brexit, E.U.-U.S. relations, Trump hatred, inflatable Trump baby

"We know he’s a vain and self-absorbed man and to know that 250,000 people want to descend on central London and demonstrate against him will give him pause for thought," said one demonstrator.

Fearless Cities, municipalist radicalism, urban power, radical democracy, Spanish municipalism, xenophobia, migrants welcome,

Looking at the growing municipalist movement on display at Fearless Cities, it's useful to think of it as a network movement, where every city is looking to build autonomy locally while thinking globally.

Iceland democracy, digital revolution, Icelandic Constitution, bank bailouts, Pirate Party

Icelanders to their credit have twice peacefully ousted governments, they are world leaders in transparency laws and digital freedom, and they decided not to bail out its failed banks.

rising U.S. poverty, rising rents, wealth inequality, income inequality, childhood poverty

By any rational definition of poverty, half of our country's households are dealing with it.

169

This week, a big step forward in the fight against Monsanto and glyphosate... and water protectors Red Fawn Fallis and Michael Little Feather Giron

Instead of disrespecting the achievements of other countries, the U.S. needs to learn from them.

Public school teachers and their supporters protest against a pension reform bill at the Kentucky State Capitol April 2, 2018 in Frankfort, Kentucky. (Photo: Bill Pugliano/Getty Images)

"Most people (including policymakers) still have no idea that skimming fees off public employees' retirement savings has become one of the largest sources of profits for Wall Street moguls."

Iceland democracy, digital revolution, Icelandic Constitution, bank bailouts, Pirate Party

Icelanders to their credit have twice peacefully ousted governments, they are world leaders in transparency laws and digital freedom, and they decided not to bail out its failed banks.

Posted 1 day 3 hours ago
Roadmap to Public Banking, Public Banking Institute. © 2013 Christine Walker

To succeed, the public banking movement needs to be more than a good idea. We need supporters to number in the tens of thousands – for if there is not unyielding public demand, there will be no public bank.

Posted 3 days 4 hours ago
U.K. Trump protests, Donald Trump, Theresa May, Brexit, E.U.-U.S. relations, Trump hatred, inflatable Trump baby

"We know he’s a vain and self-absorbed man and to know that 250,000 people want to descend on central London and demonstrate against him will give him pause for thought," said one demonstrator.

Posted 4 days 4 hours ago
169

This week, a big step forward in the fight against Monsanto and glyphosate... and water protectors Red Fawn Fallis and Michael Little Feather Giron

Posted 2 days 4 hours ago
Public school teachers and their supporters protest against a pension reform bill at the Kentucky State Capitol April 2, 2018 in Frankfort, Kentucky. (Photo: Bill Pugliano/Getty Images)

"Most people (including policymakers) still have no idea that skimming fees off public employees' retirement savings has become one of the largest sources of profits for Wall Street moguls."

Posted 3 days 1 hour ago
Roadmap to Public Banking, Public Banking Institute. © 2013 Christine Walker

To succeed, the public banking movement needs to be more than a good idea. We need supporters to number in the tens of thousands – for if there is not unyielding public demand, there will be no public bank.

U.K. Trump protests, Donald Trump, Theresa May, Brexit, E.U.-U.S. relations, Trump hatred, inflatable Trump baby

"We know he’s a vain and self-absorbed man and to know that 250,000 people want to descend on central London and demonstrate against him will give him pause for thought," said one demonstrator.

Public school teachers and their supporters protest against a pension reform bill at the Kentucky State Capitol April 2, 2018 in Frankfort, Kentucky. (Photo: Bill Pugliano/Getty Images)

"Most people (including policymakers) still have no idea that skimming fees off public employees' retirement savings has become one of the largest sources of profits for Wall Street moguls."

campaign finance laws, dark money, Supreme Court pick, Brett Kavanaugh, Koch brothers, First Amendment, Citizens United, American Enterprise Institute

Kavanaugh’s appellate court decisions and public comments suggest he will accelerate the trend toward a political system dominated by wealthy elites – often operating in the shadows, without any form of disclosure.

169

This week, a big step forward in the fight against Monsanto and glyphosate... and water protectors Red Fawn Fallis and Michael Little Feather Giron