The world’s richest 1% have amassed a staggering $42 trillion in new wealth over the past decade, according to a new analysis released by Oxfam. This figure represents nearly 34 times more than the total wealth of the bottom 50% of the global population.
Oxfam, a confederation of 21 independent non-governmental organizations focused on alleviating global poverty, highlighted this growing disparity as taxes on the wealthy have reached historic lows. The analysis reveals that the average wealth per person in the top 1% increased by nearly $400,000 in real terms over the past decade. In contrast, individuals in the bottom half of the wealth distribution saw their wealth rise by only $335—a mere nine cents a day.
The report, titled “Top 1% Bags Over $40 Trillion in New Wealth During the Past Decade as Taxes on the Rich Reach Historic Lows,” was released ahead of the third meeting of G20 Finance Ministers and Central Bank Governors in Rio de Janeiro, Brazil. It underscores the vast chasm in wealth accumulation between the world’s elite and the rest.
Oxfam’s analysis also points to a severe decline in taxes on wealth. Currently, less than eight cents of every dollar in tax revenue in G20 countries comes from wealth taxes. Over the past four decades, the share of income held by the top 1% in these countries has increased by 45%, while top tax rates on their incomes have been reduced by approximately one-third.
Max Lawson, Head of Inequality Policy at Oxfam International, criticized both the extreme inequality and the inaction of governments. He urged G20 governments to demonstrate political will by implementing higher taxes on the super-rich to address the growing disparity. “Inequality has reached obscene levels, and until now governments have failed to protect people and the planet from its catastrophic effects,” Lawson said.
He further noted that the “war on fair taxation” has led to a collapse in tax rates on the wealth and income of the richest. Billionaires globally have been paying a tax rate equivalent to less than 0.5% of their wealth. To counteract extreme wealth accumulation, Oxfam suggests that a global annual net wealth tax of at least 8% would be necessary. With G20 countries housing nearly four out of five of the world’s billionaires, the proposed tax increase could significantly impact the distribution of global wealth.
As the G20 Finance Ministers convene, there is mounting pressure for them to establish a global standard that prioritizes equitable taxation and addresses the needs of the many over the greed of the few.
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