They say that money makes money, and the rich just keep getting richer. That's certainly true these days, as the richest 1% in the world are expected to soon own more than 50% of all global wealth. Oxfam International recently presented the startling facts about income inequality at the 2015 World Economic Forum in Davos, Switzerland.
The rise for those in that exclusive 1% has been swift. The amount of wealth controlled by the richest 1% increased from 44% in 2009 to 48% in 2014 -- amounting to a staggering $2.7 million in the pockets of each mega-wealthy adult. If this trend continues, the global elite will hold at least 50% of the world's wealth by 2016.
Income inequality has been rising steadily for the last 40 years. In the 1970s, the fortunate few held less than 10% of all wealth. Since then, the gap between the rich and "the rest" has grown due to stagnant wage growth, a less progressive tax structure, a changing job market, and low savings rates.
More on the world's wealthiest people:
- In the U.S., the wealthiest 160,000 families own as much as the poorest 145 million families, combined.
- About 20% of the world's billionaires make their money in the financial and insurance sectors.
- Oxfam is concerned that powerful lobbying by the ultra-rich will block any meaningful global tax reform.