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Issue #1579      January 30, 2013

World’s 100 richest earned enough to end global poverty four times over

The world’s 100 richest people earned a stunning total of US$240 billion in 2012 – enough money to end extreme poverty worldwide four times over, Oxfam has revealed, adding that the global economic crisis is further enriching the super-rich.

“The richest 1 percent has increased its income by 60 percent in the last 20 years with the financial crisis accelerating rather than slowing the process,” while the income of the top 0.01 percent has seen even greater growth, a new Oxfam report said.

For example, the luxury goods market has seen double-digit growth every year since the crisis hit, the report stated. And while the world’s 100 richest people earned US$240 billion last year, people in “extreme poverty” lived on less than US$1.25 a day.

Oxfam’s new report, “The Cost of Inequality: How Wealth and Income Extremes Hurt us All,” argues that the extreme concentration of wealth actually hinders the world’s ability to reduce poverty.

The report was published before the World Economic Forum in Davos, and calls on world leaders to “end extreme wealth by 2025, and reverse the rapid increase in inequality seen in the majority of countries in the last 20 years.”

Oxfam’s report argues that extreme wealth is unethical, economically inefficient, politically corrosive, socially divisive and environmentally destructive.

The report proposes a new global deal to world leaders to curb extreme poverty to 1990s levels by:

  • closing tax havens, yielding US$189 billion in additional tax revenues
  • reversing regressive forms of taxation
  • introducing a global minimum corporation tax rate
  • boosting wages proportional to capital returns
  • increasing investment in free public services

The problem is a global one, Oxfam said: “In the UK inequality is rapidly returning to levels not seen since the time of Charles Dickens.” In the US, the richest 1 percent’s share of income has doubled since 1980 from 10 to 20 percent, according to the report. For the top 0.01 percent, their share of national income quadrupled, reaching levels never seen before.

“We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true,” Executive Director of Oxfam International Jeremy Hobbs said.

Hobbs explained that concentration of wealth in the hands of the top few minimises economic activity, making it harder for others to participate: “From tax havens to weak employment laws, the richest benefit from a global economic system which is rigged in their favor.”

The report highlights that politics has become controlled by the super-wealthy, which leads to policies “benefitting the richest few and not the poor majority.”

Russia Today   

Next article – Israel’s election ratified the apartheid status quo

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