Global Elite Earned Enough In 2012 To End Global Poverty 4 Times Over
Aid and development charity Oxfam have reported that the world’s 100 richest people, who earned $240 billion in 2012, could end worldwide extreme poverty four times over.
The report said “The richest 1% has increased its income by 60% in the last 20 years with the financial crisis accelerating rather than slowing growth”.
Providing even more evidence that the global financial crisis is enriching the super-rich, the report revealed that the sale of luxury goods has seen double-digit growth every year since the crisis began. The world’s richest 100 riches people earned $240 billion last year while many people in the world lived on less than $1.25 per day.
Oxfam’s new report ‘The Cost of Inequality: How Wealth and Income Extremes Hurt us All’ says that the concentration of wealth into the hands of a few harms the world’s ability to end poverty.
The report calls on world leaders to end extreme wealth by 2025 in an attempt to reverse the increasing inequality seen over the last 20 years. Oxfam say the extreme concentration of wealth is socially divisive, unethical, economically inefficient, politically corrosive and environmentally damaging.
The report suggests a number of ways that world leaders could reduce the inequality gap including closing tax havens, introducing a worldwide minimum corporation tax, increasing investment in free public services, reversing regressive forms of taxation and boosting wages in proportion to capital returns.
Oxfam said “In the UK, inequality is returning to levels not seen since the time of Charles Dickens. In China, the top 10% now take home nearly 60% of the income. Chinese inequality levels are now similar to those in South Africa, which is now the most unequal country on Earth”. In countries such as the US, the report revealed the income of the richest 1% has doubled since 1980.
Jeremy Hobbs, the Executive Director of Oxfam International believes the concentration of worldwide wealth in the hands of a few damages economic activity by making it harder for others to participate. “We can no longer pretend that the creation of wealth for the few will inevitably benefit the many – too often the reverse is true” he said. “From tax havens to weak employment laws, the richest benefit from a global economic system which is rigged in their favour”.
The report revealed that even the political system has become compromised and is controlled by the super-rich leading to policies that benefit them and ignore the needs of everyone else.
“It is time our leaders reformed the system so that it works in the interests of the whole of humanity rather than the global elite”.
Source: “World’s 100 richest earned enough in 2012 to end global poverty 4 times over”, from rt.com