5 billion people have become poorer since 2020 - world's 5 richest doubled their wealth
Since 2020, the world's five richest men have doubled their wealth. At the same time, over 5 billion people have become poorer. Too many live with hunger, high costs and tough choices, while global corporations generate high profits for their already wealthy owners. A new Oxfam report calls for political action to address this rampant inequality.
The beginning of this decade is marked by polarization and widening gaps, with a few individuals enjoying extreme wealth, while the vast majority are increasingly struggling and far too many are struggling to survive from day to day. Oxfam's new report Inequality Inc. estimates that the world will have its first dollar billionaire within 10 years, while it will take 229 years to eradicate global poverty. For at least 800 million workers, wages have not kept up with inflation.
"This is a dangerous and unsustainable trend, and world leaders must act to regulate this extreme inequality. A more equal world is possible if governments effectively regulate and transform the private sector, and redistribute the power of billionaires and corporations back to ordinary people."
Suzanne Standfast, Secretary General Oxfam Sweden
The Oxfam report released today as political and business elites gather in Davos shows that many of the world's richest people also control large global companies. This gives them great influence over our economies and over people's lives.
"The wealth of a few individuals leads to a huge concentration of power. Rich business leaders make huge profits while ordinary people struggle with higher costs due to pandemics, inflation and wars. They influence people's wages and living standards, the food we can afford and the medicines we can access, and their lifestyles and investments fuel the climate crisis."
Suzanne Standfast, Secretary General Oxfam Sweden
Inequality is also evident in Sweden, with the five richest Swedes owning more than 5 million people between them. Oxfam has shown in previous reports that Sweden's tax policy is failing to combat economic inequality, and in the past year there have been continued reports of a tougher everyday life for many, most recently that evictions of families with children are increasing and are at the same levels as during the 2008 financial crisis.
'Inequality and gaps are a political failure that can be changed by political decisions. But Sweden no longer keeps statistics on people's wealth and debt. This means that we lack sufficient knowledge about economic inequality in Sweden. This should be a matter of course, in order to be able to analyze the situation in the Swedish economy and decide on the right measures to reduce inequality."
Suzanne Standfast, Secretary General Oxfam Sweden
Oxfam Sweden wants to see:
- improved statistics That the government produces an annual inequality report, with a mapping of inequality and its consequences, as well as analysis and proposals for action. To enable this, better data and greater transparency on the distribution of income and wealth in Sweden is required.
- Tax the richest individuals and companies to reduce inequality and generate funding for welfare and equitable climate change. Introduce a permanent wealth tax and a temporary tax on extraordinary profits for companies. Implement a permanent increase in the tax level on income for the richest one percent. The tax should apply to income from work and capital and have a higher tax rate for multi-billionaires.
- More equitable distribution of company profits. Companies should ensure decent living wages and secure conditions for their employees before profits for their owners.
About the report:
- On the occasion of the World Economic Forum in Davos 2024, Oxfam publishes the report 'Inequality Inc. which shows a concentration of power where the world's richest people control a large share of the largest and most influential companies in the world.
- The world's five richest men have seen their wealth increase by 114% since 2020 - from USD 405 billion to USD 869 billion (an increase of USD 14 million per hour).
- The Oxfam report predicts that the world will see its first dollar billionaire (one million million USD) within 10 years, while it is estimated to take over 2 centuries to eradicate poverty.
- 7 of the world's 10 largest companies are now controlled by a dollar billionaire.
- Dollar billionaires have become $3.3 trillion richer than in 2020, and their wealth has grown three times faster than the rate of inflation.
- The wages of nearly 800 million workers have failed to keep up with inflation and they have lost $1.5 billion over the past two years.
Swedish figures:
- For the Swedish figures, Oxfam has used the same sources as for the global figures.
- The figures for the five richest Swedes' fortunes come from the Forbes real-time billionaires list as of November 30, 2023 to total USD 55.5 billion:
1. Stefan Persson, USD 18.5 billion
2. Antonia Ax:son Johnson and family, USD 9.6 billion
3.Jörn Rausing, USD 8.8 billion
4. Kirsten Rausing, USD 8.8 billion
5. Finn Rausing, USD 8.8 billion
- Based on the UBS Global Wealth Report 2023, Oxfam has estimated the wealth of 60% of the Swedish population at USD 43.2 billion in 2022.