According to a new study, coronavirus outbreaks have expanded the already-widening gap between rich and poor individuals worldwide. According to a study released on Tuesday, global billionaires’ share of global wealth has increased at its fastest rate since the World Inequality Lab began collecting numbers in 1995. More than $3.6 trillion will be added to their net worth in the year 2020 alone, making them 3.5 percent of the entire global household wealth.
Billionaires’ Wealth Increased While Millions Of Others Became Poor
By 2021, the overall number of individuals who would be affected by the pandemic is expected to rise to 711 million, based on the World Bank’s forecast. As a result of the 1998 Covid-19 pandemic, many more individuals would have been forced into poverty if wealthy nations had not stepped in to provide help.
The report’s primary author and lab co-director, Lucas Chancel, said, “The Covid problem has created inequality between the exceedingly rich and the majority of the population.” However, even though government intervention prevented a significant rise in poverty in wealthy countries, this was not the case in destitute ones.
There are more than 100 experts from all across the globe who worked on the World Inequality Report for more than four years before it was published online. A team led by Emmanuel Saez, Gabriel Zucman, and Thomas Piketty, all of the University of California, Berkeley, and the Paris School of Economics, collaborated on the study.
Despite Covid-19’s widening divide between rich and poor, the world has always been unequal. More and more people have become more prosperous during the last several decades because of financial deregulation, private sector reform, tax reform in developed countries, and large-scale private sector reform elsewhere. According to a new analysis, there has been a resurgence of inequality throughout the world.
That’s why the report recommends a greater tax for the wealthy, which may help relieve inequality and fund education, health, and environmental projects. Taxing millionaires to raise money to expand the social safety net was recently proposed by Democrats in the United States, but the notion was quickly dropped due to a reaction.
The study claims that by 2021, a 10 percent group would possess more than seventy-six percent of the world’s total wealth. On the other hand, the poorest half of the population owns only 2% of the total. The middle 40 percent of shareholders hold twenty-two percent of shares. The wealthiest ten percent of the world’s population receives 52 percent of the world’s total income, while the poorest half of the population receives just 8 percent. Thirty-nine percent of the population is comprised of the middle 40 percent.
According to the study, the top one percent of the global wealth distribution earned 38% of the rise in global wealth between 1995 and 2021, while the lowest 50% gained only 2%. During this period, the fortunes of the wealthy grew at a much faster rate, averaging between 3% and 9% annually. However, the wealth of the lowest half of the population grew by between 3% and 4% every year. Furthermore, since they had limited money, the total amount did not increase much. For Latin America, the wealthiest 10% of income earners hold 77% of all wealth compared to the lowest 50% of income earners, who possess only 1% of the wealth.