World Economic Forum: The wealth of the world’s top 5 richest people doubled in 13 years, 5 billion people became poor.
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World Economic Forum: The World Economic Forum meeting is being organized in Davos from today. At the meeting, Oxfam’s Economic Survey report stated that the combined wealth of the world’s five richest people has doubled in 13 years. According to the report, the combined wealth of the top five richest people has increased from $ 405 billion in the year 2020 to $ 869 billion last year. However, in the meantime there has been a decline in the wealth of about five billion people in the world. ‘Inequality Inc.’ Published in the name of The report claims that for every $100 in profit earned by 96 major corporations between July 2022 and June 2023, a whopping $82 was distributed to wealthy shareholders. Oxfam’s report also tells about the growing divide. It says billionaires have collectively become $3.3 billion richer since 2020. At the same time, it highlights the worrying trend of increasing wealth concentration amid macroeconomic challenges, including in the post-Covid pandemic.
What do Oxfam officials say
Amitabh Behar, Executive Director of Oxfam International, said that we are witnessing the beginning of a decade of division, in which billions of people are facing the economic shocks of pandemic, inflation and war. Whereas, the fortunes of billionaires are rising. This inequality is no accident. The billionaire class is making sure that corporations provide them with more money at the expense of everyone else. He said it estimated that the 148 top corporations made $1.8 trillion in profits, 52 percent more than the 3-year average, allowing huge payouts to shareholders. While millions of workers faced subsistence crisis as wages got cut in real terms due to inflation. The report highlights significant wealth growth from individuals like Tesla CEO Elon Musk, LVMH chief Bernard Arnault, Amazon’s Jeff Bezos, Oracle co-founder Larry Ellison and investor Warren Buffett. In contrast, only 0.4% of the world’s 1,600 largest corporations have committed to paying workers a living wage and supporting it across their entire value chain.
Impact of inflation on wage stability
The report also discusses the disproportionate impact of inflation and wage stagnation. It is said that approximately 800 million workers worldwide have experienced a decline in real wages. This loss is equivalent to an average loss of 25 days of annual income per employee. Despite this, the top 148 corporations have seen profits grow by 52 per cent over the three-year average, providing substantial payouts to shareholders.
Solution mentioned in the report
In the report of Oxfam International presented at the World Economic Forum, the problem as well as its solution has been discussed. Oxfam advocates implementing a wealth tax on millionaires and billionaires, which could potentially generate $1.8 trillion annually. Additionally, the charity calls for a cap on CEO pay and an end to private monopolies. The report includes proposals from the charity to break up monopolies, tax excess profits and wealth, and explore alternatives to shareholder control such as employee ownership.
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