Richest 1% of the World's Population Will Control Two-Thirds of Global Wealth by 2030, New Analysis Suggests
The rich are getting richer, and they won't stop taking over the world's finances while they're ahead, too. That's what a new analysis by the House of Commons hinted at, with the richest 1 percent of the population on track to eventually own as much as two-thirds of global wealth by 2030.
The 1 percent at the top of the world's finances would just continue to grow even richer, and this imbalance would eventually result to them holding 64 percent of the wealth of the entire world by 2030, according to projections by the House of Commons library.
Even a financial crash would only leave them with about half of the world's riches by that year, which is not a bad place to be in for the one in 100 people to be at their tier. For the other 99 percent, though, a growing anger over the sheer disparity could eventually blow up into a crisis, according to The Guardian.
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This is certainly something that world leaders will have to look into if they are to avoid stretching the gap between the rich and poor even further. While the rest of the world are making do with a six percent growth in wealth per year, the 1 percent has been growing theirs at roughly double the rate, at six percent.
This disparity would mean that from the $140 trillion that the top wealthiest groups gold today, this could grow to $305 trillion by 2030. All these are seemingly fueled by income inequality and assets staying with the rich, giving them a lopsided advantage when it comes to investing in businesses and stocks.
Being rich might bring no harm by itself, but unfair access to wealth will be a bigger problem than ever before. The world's economy is already at the point where the growing gap between the rich and the poor would become impossible to reverse, according to Liam Bryne, the former Labor cabinet minister who commissioned the study.
"If we don't take steps to rewrite the rules of how our economies work, then we condemn ourselves to a future that remains unequal for good," Bryne said, according to the Business Insider.
"That's morally bad, and economically disastrous, risking a new explosion in instability, corruption and poverty," he emphasized.
While one in one hundred adults are currently in control of half the world's wealth, the bottom fifty out of them will be fighting for less than 1 percent of the pie, according to a study by Swiss lender Credit Suisse.
The bottom 50 percent of adults, if they pool all their wealth together, will not even add up to 1 percent of the world's money. As for the rest of the wealth in the world, a huge part of that is owned by the top 10 percent, with ten out of a hundred adults owning 88 percent of global assets.
More alarmingly, "The top 1% own 50.1% of all household wealth in the world," the report, which was published last year, concluded. By 2030, that disproportion could grow to 64 percent, unless economy leaders do something about it.
