The Word Inequality Report 2022 shows that the richest own over 75% of the world’s wealth. The poorest have 2%.
Over the past two decades, the income gap between the richest 10% and the poorest 50% has almost doubled.
The income gap varies from country to country and generally depends on the policy choices of governments.
In 2021, the average adult worldwide earns US $ 23,380 (AU $ 32,856) and has US $ 102,600 (AU $ 144,186) in net worth.
Someone in the top 10% of the global income distribution earns $ 122,100 ($ 171,590) per year.
And someone in the poorest half of the world only earns US $ 3,920 (AU $ 5,509) a year.
That’s according to a massive new report on global inequalities written by a team of economists coordinated by Lucas Chancel, Thomas Piketty, Emmanuel Saez and Gabriel Zucman that has confirmed that the global wealth gap is only widening. . The researchers calculated these dollar averages in terms of PPP, or purchasing power parity, an economic theory that compares the purchasing power of different currencies.
Admittedly, these average incomes can be misleading since the rich minority holds the majority of the world incomes while the poorest are responsible for a small percentage. In percentage terms, the richest 10% in the world far exceeds those of the poorest 50%, taking in more than half of global income. The poorest half earn only 8%.
And researchers have pointed out that inequalities in wealth – as opposed to income – are even more glaring. âThe poorest half of the world’s population has virtually no wealth, owning only 2% of the total. In contrast, the richest 10% of the world’s population own 76% of all wealth. “
They summed up sullenly: âThe poorest 50% own next to nothing. “
The gap between rich and poor is widening in some countries – and it is a political choice to leave it
Over the past two decades, the income gap between the richest 10% and the poorest 50% has nearly doubled, writes the team, which includes economist Thomas Piketty.
Twenty years ago, people in the world’s highest income bracket earned 8.5 times more than those in the lowest income bracket. Now they earn 15 times more.
The report ultimately concluded that these disparities were not inevitable. Even though inequalities are global, some countries have experienced much larger increases in their wealth gaps than others: namely the United States, Russia and India. Others, such as European countries and China, experienced relatively smaller increases in inequality.
The United States, for example, has seen inequalities widen between the wealthier and middle classes due to massive indebtedness – mostly mortgages and student debt, according to the report.
âThese differencesâ¦ confirm that inequality is not inevitable, it is a political choice,â the report said.