According to a recent report, the wealth of billionaires increased by $2 trillion (£1.64 trillion) last year, which is three times faster than it was in 2023. This rise, which comes to $5.7 billion (£4.7 billion) every day, underscores the widening gap between the world’s poorest and ultra-wealthy. The sharp increase in billionaire wealth coincides with the ongoing global problem of poverty.
Why Does Global Poverty Still Exist While Billionaires' Wealth Is Growing?
According to the analysis, there is a concerning trend: instead of having one trillionaire as predicted last year, the world is expected to have five trillionaires during the next ten years. The sharp increase in billionaire wealth coincides with the fact that billions of people are still living in poverty.
“The world is now headed for at least five trillionaires, notwithstanding our prediction last year that the first one may appear within ten years due to the startling acceleration of wealth. An expert in the sector stated, “The global economic system is broken, completely unfit for purpose as it permits and perpetuates this explosion of riches while nearly half of humanity continues to live in poverty.”
Just before the annual World Economic Forum in Davos, where business executives, political figures, and some of the richest people in the world convene to address global economic concerns, the research was made public.
How Did the Wealth and Number of Billionaires Rise So Sharply?
Last year, there were 204 more billionaires worldwide, increasing the total to 2,769. The second-largest annual rise in history occurred when their combined wealth increased from $13 trillion to $15 trillion. The wealth of the ten richest persons in the world increased by almost $100 million every day, and the top billionaires are still accumulating incredible fortunes.
Even though the richest people’s wealth is increasing quickly, billions of people still live in poverty. The research states that about 3.6 billion people, or 44% of the global population, continue to live below the $6.85 per day World Bank poverty level. According to the research, there are 24.3 million more women than males living in extreme poverty, with one in ten of them subsisting on less than $2.15 per day.
Why Is Billionaire Wealth Increasing So Much in the UK?
The increased wealth concentration among billionaires in the UK is another point of emphasis in the report. In 2024, the UK’s wealth increased by £35 million every day, reaching £182 billion. There are now 57 billionaires in the United Kingdom, an increase of four. Jim Thompson, founder of Crown Worldwide, Donald Mackenzie, co-founder of the private equity firm CVC, Sunder Genomal, founder of Page Industries in India, and Mark Dixon, head of flexible office supplier IWG, are among the new billionaires.
The expert claimed that while nearly half of the world’s population still lives in poverty, the global economic system is flawed and completely unsuited for its intended purpose.
Which Is the Source of Billionaire Wealth: Innovation or Inheritance?
The origin of billionaire wealth is also examined in the research. It contends that a large portion of wealth is “taken, not earned,” with monopoly power, cronyism, corruption, and inheritance accounting for 60% of billionaire wealth. Monopolistic activities account for a substantial 18% of the wealth, which concentrates power in the hands of a select few.
Among the wealthiest individuals on the current list of billionaires are Bernard Arnault, Larry Ellison, Mark Zuckerberg, Jeff Bezos, and Elon Musk. These people, who are among the richest in the world, are also becoming more powerful in international politics. Musk, Bezos, and Zuckerberg were anticipated to join Trump’s inner circle of advisors upon his inauguration as president, further cementing the tech industry’s increasing power to shape international policy.
How Is Wealth Inequality Affected by Monopoly Power?
According to the research, global inequality has been made worse by the concentration of wealth in the hands of a small number of powerful monopolies, especially in the technology industry. Among others, Musk, Bezos, and Zuckerberg are in charge of significant industries that have an impact on politics and economies worldwide. For example, Bezos’ Amazon controls at least 70% of online sales in a number of important European nations, such as Germany, France, the UK, and Spain. In the meantime, the richest individual in Africa, Aliko Dangote, owns a large portion of the cement business in Nigeria, resulting in conditions that are almost monopolistic throughout the continent.
Is It Possible to Reduce Inequality and End World Poverty?
In order to reduce the widening gap between the richest and poorest people on the planet, the research urges immediate action. According to the charity, poverty could be eliminated three times more quickly if inequality were decreased. “If inequality were reduced, extreme poverty could be ended three times faster,” the expert stressed.
The study promotes drastic measures to lessen inequality in response to the widening wealth disparity, such as raising taxes on the very rich. According to the research, these steps would provide much-needed funding for social programs and public services in the UK and around the world. To address inequality in the UK and abroad and to make vital investments in our public services, enormous sums of money could be raised, ” the expert said.
Is International Tax Reform the Answer to More Equitable Wealth Distribution?
The demand for increased taxes on the ultra-wealthy coincides with the G20 countries’ agreement to work together on global tax reform, raising hopes for a more equitable distribution of income. Globally, there is now “genuine momentum” to enact more equitable taxation laws, which is an important first step in resolving the structural injustices that afflict the global economy.
The research emphasises the urgent need for economic policies that can invest in projects that fight poverty and inequality globally and limit the rise of billionaire wealth. The wealth gap will keep growing if nothing is done, leaving billions behind.
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