Wealth Distribution

Wealth Distribution

To begin with, wealth can be defined in layman’s terms as owning financial assets – stocks, shares, cash, etc. - and propriety. If we would be living in a utopian society all the wealth would be distributed equally among the people. However this is not the case the wealth at a global level is distributed in a quite inconsistent manner.

Let’s start off with some numbers: the total world population consists of approximately 7 billion people and the total wealth is around 241 trillion US dollars. This sounds great and the big number can fool most people.

When taking a look from a high perspective we can see that around 46% of the wealth - 110 trillion USD – is in the hands of 1% of the population – 70 million people. Of course not distributed equally here either. This is happening in while the bottom 50% of the population – 3.5 billion people – have 1% of the global wealth – 1.7 trillion USD –, again not distributed equally.

Between 1980 and 2012 the increase in share of income for the top 1% has staggered up to 140% in the US. This is clearly a trend. What this means in plain English is that the top 1% of the richest people on earth re getting exponentially richer. Also while in 1980 less than 10% of the national income was finding its way to the top 1%ers pockets now we have almost 20% of the income going there. This trend also applies to European and Asian countries.

 

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