Most of us are already sadly aware that the world is full of mass inequality, however, a new report by economic experts has shed light on the shocking reality of just how much.
The World Inequality Report 2022 has revealed that the richest 10 percent of the world’s population hold 76 percent of all wealth, whilst the bottom half of the world’s population 'barely owns any wealth at all', with just 2 percent.
This means that the 517 million people (who make up the top) own significantly more than the 2.5 billion that make up the bottom, demonstrative that the wealth of the world is actually ‘trickling-up’.
These findings contradict the theory of trickle-down economics, a typically right-wing economic policy propelled by former US President Ronald Reagan that promises that benefits of cutting taxes for the richest in society will ‘trickle-down’ to the workers.
Whilst this theory has been largely discredited, as most research (including in this report) has shown that tax cutting worsens inequality and tax cuts for the rich are still a popular policy for the likes of Prime Minister Boris Johnson and former US President Donald Trump.
Perhaps someone should give them a lesson in economics!
The study also revealed that this was also yet another great year for billionaires and the 0.01 percent (shock), despite the global pandemic putting a stop to a significant amount of industry.
Within the richest circles of our population, the inequality report has told us that those lucky enough to be in the wealthiest 0.01 percent have a whopping 11 percent stake in the wealth of the world. This is up from 10 percent last year!
In fact, the report remarked that 2020 actually 'marked the steepest increase in global billionaires’ share of wealth on record', whilst the bottom 50 percent share in wealth has always been 'very low', owning between two-seven percent of the total share of wealth.
The report also revealed that progress in reaching gender inequality 'is too slow', as women's share of the total incomes from work has not even increased by five percent since 1990.
Further to this, the experts have told us that the top 10 percent of CO2 emitters are responsible for close to 50 percent of all emissions, while the bottom 50 percent produce just 12 percent.
This has led them to proclaim that 'addressing large inequalities in carbon emissions is essential for tackling climate change'.
The experts that compiled this report stressed that 'much remains to be done, in every region of the world, if we are to reduce extreme wealth inequalities' and that 'inequality is a political choice, not an inevitability.'
They suggested at the end of their report a way to redistribute wealth via a modest progressive wealth tax on global multimillionaires, insisting that 'addressing the challenges of the 21st century is not feasible without significant redistribution of income and wealth inequalities'.
Let’s just hope our world leaders will take serious notes on this important issue.
Featured Image Credit: Alamy
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