The world's super-rich hold the greatest concentration of wealth.
The financial giant Credit Suisse has released a report which reveals that the super-rich people of the world have accumulated more than a half of the world's wealth, while the 3.5 billion poorest people in the world account for only 2.7 percent.
The report states that since the beginning of the financial crisis, the world's top 1 percent have risen their share of global wealth by 18 percent to 50.1 percent or approximately $140 trillion.
Global Wealth Report released by credit Suisse also explains that they have been making estimations since 2000 and now the share of the top 1 percent is significantly above the level which was observed in 2000. According to the report, the number of millionaires in the world is expected to grow to the highest by now level of 44 million over the next five years.
The report also raises the issue of the shattering levels of inequality that characterizes the global wealth pyramid. The 3.5 billion grown-up people with wealth below $ 10,000 account only for 2.7 percent of global wealth. At the same time, the 36 million millionaires make up less than 1 percent of the adult population, but they own 46 percent of household wealth.
Credit Suisse also draws attention to millennials who have had an "unlucky" start to their financial independence because of the banks' decision to introduce tighter credit ratings and because of the more than $1.3 trillion of student debt. The report describes the "perfect storm" that holds back accumulation of wealth, especially in Europe and North America.
The costs of higher education have risen significantly as well so lots of young people have to juggle academic studies and a part-time or a full-time job. They often have to skip their classes and as a result, they practically have no time for studying and completing writing assignments so they often choose to buy online their Ancient Roman and Greek Architecture Essay or research paper on global warming.
Millennials have everywhere demonstrated an energetic approach when meeting their challenges and opportunities. For example, they keep an active healthy lifestyle and take an active part in sharing economy. Although millennials are told to spend nearly $900,000 per month on avocado toast and were accused of killing off a dozen of industries, on the whole, they can't be called a lucky generation.
Economists warn that contemporary world is entering the second "Gilded Age' that can be characterized by the extreme inequality and the concentration of the world's wealth in the hands of a few people.
According to UBS Billionaires Report, we are witnessing the expansion in the billionaire wealth. Globally, the total billionaires' wealth increased by 17% in 2016, from $ 5.1 trillion to $ 6.0 trillion. Due to Asian economic expansion, Asian billionaires have outnumbered the billionaires in the USA. Now there are 1,542 dollars billionaires in the world. In spite of the geopolitical uncertainty, the world's ultra-wealthy are really flourishing. The concentration of wealth is as high as in 1905 and the researchers fear that the society will intervene and strike back.
The International Monetary Fund suggested that western governments should force the top 1% of earners to pay more tax in order to reduce the dangerous levels of inequality. Super rich are also concerned over public opinion that they are getting rich at the expense of the entire population so, as a result, they started to spend their money on sports teams and public art galleries as well as make greater philanthropic gifts.
According to the recent report of the Institute for Policy Studies, Bill Gates, Warren Buffett, and Jeff Bezos are the wealthiest people in the USA and they own more assets than the whole bottom half of the US population that consists of 63 million households or 160 million people.
The study points out that these figures do not reveal the real current levels of wealth concentration due to the growing use of legal trust and offshore tax havens that make possible to conceal assets as never before.
The so-called Paradise Papers revealed the extent to which the world elite are concealing their wealth, tax-free.
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Nov 29, 2017 08:50 AM EST