During the first two years of the coronavirus pandemic, a new billionaire was minted every 30 hours, according to a new report by Oxfam International. The report, called “Profiting from Pain”, highlights how the pandemic rapidly widened the gap between the world’s richest and poorest - with 573 of the world’s richest people becoming billionaires during that time.
Meanwhile, the pandemic has created new pharmaceutical billionaires, profiting from the monopolies their companies hold over vaccines, treatments, tests, and personal protective equipment, the report said. “As billionaires gather in Davos, Switzerland, in person for the first time in over two years, they have a lot to celebrate. During the COVID-19 pandemic their mountain of wealth has reached unprecedented and dizzying heights. The pandemic – full of sorrow and disruption for most of humanity – has been one of the best times in recorded history for the billionaire class,” read the report.
The chart unveils four key points:
https://blogs.imf.org/2021/11/09/the-unequal-covid-saving-and-wealth-surge/-The overall increase in net wealth, in percent of disposable income, was considerably larger during the pandemic (between the end of 2019 and the second quarter of 2021) than during normal times (between the end of 2014 and end of 2019).
-It was driven mainly by valuation changes (due to booming equity and housing prices) as well as, to some extent, by the “COVID saving surge” (with a jump in “other assets,” including bank deposits).
-This overall increase in net wealth was also unevenly distributed, with much of it accruing to people at the top of the distribution. Indeed, the equity price boom mostly benefitted the rich, while lockdowns more heavily affected spending on dining and travel, which make a larger part of wealthier households’ consumption habits. Additionally, government support, in the form of direct stimulus or support to firms, also benefitted the saving of wealthier households compared to poorer households that were more likely to spend the extra cash.
-At the same time, the distribution of wealth across groups did not change much, as the increases in net wealth were relatively in line with the pre-pandemic shares in the wealth distribution.
In 2022, it is expected that millions of people with fall into extreme poverty every 33 hours. According to the report, 263 million people are predicted to fall into extreme poverty this year, citing the cost of living crisis as one of the many driving factors. While the billionaires who control these assets are set to profit even more, Oxfam warns hundreds of millions could be priced out of staying alive.
Oxfam International’s investigations also concluded that 2,668 billionaires own $12.7 trillion (€11.91 trillion) of the planet’s wealth, with the world’s 10 richest men owning more than the poorest 3.1 billion people on earth. The report highlighted key industries which are thriving throughout the cost of living crisis. For instance, whilst global food prices have spiralled 33.6 per cent in the last year, global food giant Cargill has increased their wealth by $14.4 billion (€13.49 billion), 65 per cent since 2020.
https://www.euronews.com/next/2022/05/25/covid-created-a-new-billionaire-every-30-hours-while-many-face-extreme-poverty-report-saysOne thing that many people still don't fully comprehend is how wealth generates way more wealth. If you're living paycheck to paycheck, or are barely able to add to your savings every month on a regular salaried job, the best you might be hoping for is home ownership which is fully paid off by retirement to become your nest egg. However once you reach a certain level of wealth, the money they hold on assets like company stocks will pay them out a regular dividend (i.e. a share of company profits) which is often automatically reinvested or can be used to sustain a lifestyle without ever breaking that initial capital. Their money buys further income while most people will never have that level of freedom.
