Were you aware that despite the numerous economic crises that have impacted the global economy in this decade, the fortunes of the five wealthiest individuals in the world has doubled since 2020? Oxfam International published a report during the World Economic Forum (WEF) in Davos, revealing that the combined wealth of these individuals increased from $405 billion to $869 billion between 2020 and 2023.
Despite the various crises, including the COVID-19 pandemic, billionaires, in general, have become $3.3 billion richer since 2020.
The top five individuals who experienced the most significant increase in wealth are Elon Musk, CEO of Tesla; Bernard Arnault and his family, associated with luxury company LVMH; Jeff Bezos, founder of Amazon; Larry Ellison, founder of Oracle; and Warren Buffett, an investment expert. Their wealth has risen by 114 percent in real terms since 2020, a period when the world was grappling with the pandemic.
However, Oxfam has reported that a staggering 5 billion individuals globally have become poorer since 2020.
The rate at which wealth is growing for the rich suggests that, if the trend continues, the first person could accumulate $1,000 billion within ten years.
Amitabh Bihar, interim executive director of Oxfam International, expressed concern about the extreme levels of inequality, stating that the current form of capitalism serves the interests of the super-rich.
Oxfam traditionally releases its annual report on global inequality ahead of the World Economic Forum, which takes place in Davos, Switzerland. The forum brings together over 800 corporations and more than 60 heads of state and government for informal conferences and meetings throughout a week.
Read more: Who are the world’s 10 richest people who achieved the highest profits in 2023?
Growing inequality
Oxfam has raised concerns about the growing inequality in the world, as the wealthiest individuals and companies continue to amass greater wealth year after year, largely due to rising stock prices and the sharing of multinational capital. Along with accumulating wealth, these entities also gain significant power.
According to Oxfam, companies utilize their power to further exacerbate inequality by putting pressure on workers, suppressing wage increases below inflation, evading taxes, privatizing the state, and contributing to climate change. The organization accuses companies of engaging in a tax war that perpetuates inequality, with far-reaching consequences.
Oxfam asserts that governments have granted monopolistic powers to these companies, allowing them to influence wages and the prices of essential goods such as food and medicine. The private sector’s lobbying efforts worldwide are aimed at reducing costs, widening gaps, minimizing transparency, and implementing measures that enable companies to contribute as little as possible to public coffers.
Through intense pressure on tax policymakers, companies have managed to lower their tax obligations, depriving governments of funds that could be used to support the most vulnerable groups in society. Oxfam highlights a significant decline in corporate taxes in OECD countries, dropping from 48 percent in 1980 to 23.1 percent in 2022.
To address this imbalance, Oxfam proposes implementing a tax on the wealth of millionaires and billionaires worldwide, suggesting that this could generate approximately $1.8 trillion annually.
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