According to a report by Oxfam, the world’s 8 richest men are as wealthy as the poorest half of the world’s population. That’s 8 men with the same combined wealth of 3.6 billion people.
As decision makers and many of the super-rich gather for this week’s World Economic Forum (WEF) annual meeting in Davos, the charity’s report suggests the wealth gap is wider than ever, with new data for China and India indicating that the poorest half of the world owns less than previously estimated.
Oxfam, which described the gap as “obscene,” said if the new data had been available before, it would have shown that in 2016 nine people owned the same as the 3.6 billion who make up the poorest half of humanity, rather than 62 estimated at the time.
The gap between the super-rich and poor is widening: in 2010, it would have taken 43 of the richest people to equal the bottom 50%. The eight men in question are Bill Gates, Amancio Ortega, Warren Buffett, Carlos Slim, Jeff Bezos, Mark Zuckerberg, Larry Ellison, and Michael Bloomberg.
Five of the men on this list — Gates, Buffett, Ellison, Bloomberg, and Zuckerberg (all Americans) — have signed the Giving Pledge, a public promise to give away the majority of their fortunes while still alive (or upon their deaths). They are essentially agreeing with Oxfam that their wealth should be redistributed. When five men who control, say, as much wealth as 25-30% of the world’s poorest are saying, by their actions, that the wealth inequality gap needs to be narrowed, shouldn’t the government take that as a sign that something needs to be done about it?
Update: The way Oxfam is calculating wealth here takes debt into account:
If you look at the numbers that the statistic is based on, from Forbes and Credit Suisse, you’ll see that the equality here is that the eight richest people in the world have a combined net worth of roughly $426 billion, or 0.16% of all the world’s wealth.
Is it really true that the bottom 50% of the world’s population accounts for only 0.16% of the wealth on the planet? Well, not really. The bottom 50% comprises five different deciles. Of those deciles, the fourth has 0.17% of the world’s wealth, and the fifth has 0.32%. Those are both very small numbers — but they’re both bigger than 0.16%.
So something funny is going on here — and that something funny is debt. When Oxfam looks at net worth, it adds up your assets, and then subtracts your liabilities. And when your liabilities are bigger than your assets, that means you have negative net worth. According to Oxfam’s methodology, the bottom 10% of the world’s population has a net worth of one trillion negative dollars — an almost inconceivably large sum.
The inequality is there, and growing, but Oxfam’s formulation is misleading without the proper context. (thx, everyone)