Billionaires' Wealth Soars by $2 Trillion in 2024, Report Reveals
Billionaires' Wealth Soars by $2 Trillion in 2024, Report Reveals.
The global wealth of billionaires increased by $2 trillion (£1.64 trillion) in 2024, a rate three times faster than in 2023, translating to an average of $5.7 billion per day, as reported by Oxfam.
The charity's latest inequality report indicates that the world is projected to have five trillionaires within the next decade, a significant shift from last year's prediction of only one trillionaire in the same timeframe.
Titled "Takers Not Makers," the report is released as numerous political leaders, corporate executives, and affluent individuals gather at the Swiss ski resort of Davos for the annual World Economic Forum meeting commencing on Monday.
Oxfam's analysis of billionaire wealth coincides with Donald Trump's inauguration as President of the United States. Trump is anticipated to appoint several billionaires to his close advisory team, including Elon Musk, the CEO of Tesla and SpaceX, and to propose substantial tax reductions for the wealthiest citizens in the U.S.
Simultaneously, the number of individuals living below the World Bank's poverty threshold of $6.85 per day has seen little change since 1990, remaining close to 3.6 billion, which represents 44% of the global population. The report highlights that one in ten women lives in extreme poverty (defined as below $2.15 per day), resulting in 24.3 million more women than men experiencing extreme poverty.
Oxfam has cautioned that advancements in poverty reduction have stagnated, asserting that the eradication of extreme poverty could occur three times more swiftly if inequality were addressed.
Among G7 nations, the United Kingdom exhibits the highest percentage of billionaire wealth stemming from monopolistic practices and cronyism. According to reports, wealth in the UK surged by £35 million daily, reaching £182 billion in 2024.
Last year saw the emergence of four new billionaires, bringing the total in the UK to 57. These individuals include Mark Dixon, the head of the flexible office provider IWG; Sunder Genomal, the founder of Page Industries, a garment company based in Bengaluru; Donald Mackenzie, a Scottish entrepreneur and co-founder of the private equity firm CVC; and Jim Thompson, the founder of the moving company Crown Worldwide.
The majority of the increase in billionaire wealth can be attributed to rising share prices on global stock markets, although escalating property values have also contributed. Residential real estate constitutes approximately 80% of global investments.
On a global scale, the number of billionaires increased by 204 last year, totaling 2,769. Their collective wealth surged from $13 trillion to $15 trillion within a single year, marking the second-largest annual growth since records began. The wealth of the ten richest individuals in the world grew by nearly $100 million daily, and even if they were to lose 99% of their wealth overnight, they would still retain their billionaire status.
The report highlights several prominent billionaires, including Jeff Bezos, the founder of Amazon, whose net worth stands at $219.4 billion. His Amazon enterprise is responsible for over 70% of online purchases in Germany, France, the United Kingdom, and Spain. Additionally, Aliko Dangote, with a net worth of $11 billion, is recognized as Africa's wealthiest individual, possessing a near-monopoly on cement production in Nigeria and significantly influencing the market throughout Africa.
The findings suggest that a substantial portion of wealth is acquired rather than earned, with 60% attributed to inheritance, cronyism, corruption, or monopolistic practices. The report estimates that 18% of wealth is derived specifically from monopoly power.
According to the real-time billionaires list by Forbes, the wealthiest individuals globally include Elon Musk, Jeff Bezos, Mark Zuckerberg, co-founder of Facebook and Meta, Larry Ellison, co-founder of Oracle, and Bernard Arnault, founder of LVMH. During Trump's inauguration on Monday, Musk, Bezos, and Zuckerberg are anticipated to be seated in close proximity, reflecting the increasing influence of technology companies on political matters.
Oxfam advocates for ambitious measures to significantly diminish inequality and embed fairness within our economic systems.
Anna Marriott, the Oxfam inequality policy lead, said: “Last year we predicted the first trillionaire could emerge within a decade, but this shocking acceleration of wealth means that the world is now on course for at least five. The global economic system is broken, wholly unfit for purpose as it enables and perpetuates this explosion of riches, while nearly half of humanity continues to live in poverty.”
The UK government was urged to focus on economic policies aimed at reducing inequality, which should include increased taxation on the wealthiest individuals.
“Huge sums of money could be raised, to tackle inequality here in the UK and overseas and provide crucial investment for our public services. For the first time, with the groundbreaking G20 agreement to cooperate on taxing the world’s super-rich [last July], there is genuine momentum to implement fairer taxation globally.”
The staggering $2 trillion surge in billionaire wealth in 2024, while millions remain in poverty, underscores a deeply flawed global economic system that favors the ultra-rich. Oxfam's findings reveal the urgent need for systemic reforms to address inequality, ensure fair wealth distribution, and prioritize the needs of the many over the gains of the few.
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With nearly half of humanity living on less than $6.85 per day, the rise of monopolistic practices and cronyism further widens the gap. Governments must take decisive action, including fair taxation and robust social policies, to foster a more equitable future and prevent worsening disparities.
