The 1% Now Owns 50% Of The World's Wealth
Recent evidence shows that over 50 percent of the world’s wealth is held by the top 1 percent of the population.
Today, the Swiss bank released its latest Global Wealth Report, together with a statement that said, “the outlook for the millionaire segment is more optimistic than for the bottom of the wealth pyramid.” What they found was quite unsettling, but expected: The richest 1 percent now owns more than half of all the world’s household wealth.
The research also showed that there’s a steady increase in the number of millionaires, predominantly populating the Westernized world. This is partly because the strength of the Euro has created 620,000 more of them in Germany, France, Italy and Spain. On the flipside of that metaphor coin, depreciating currencies in the U.K. and Japan have seen 34,000 and over 300,000 people, respectively, lose the status.
Credit Suisse — an investment and banking analytics company — expects to see a 22 percent rise in dollar millionaires by 2022, from 36 million to 44 million. The problem is, the numbers of adults who have less than $10,000 are expected to shrink by only 4 percent.
“Despite higher mean wealth per adult, median wealth fell again this year in Africa, Asia-Pacific and Latin America. Our projections for 2022 suggest more pessimistic scenarios for the immediate years ahead,” the researchers said.
“Looking at the bottom of the wealth distribution, 3.5 billion people — corresponding to 70% of all adults in the world — own less than $10,000,” the researchers went on to write in their joint publishings. “Those with low wealth tend to be disproportionately found among the younger age groups, who have had little chance to accumulate assets, but we find that millennials face particularly challenging circumstances compared to other generations,” they wrote.
Millennials are also more likely to be unemployed or earning much less than their Baby Boomer coworkers did at the same age, priced out of the housing market, and unable to get pensions. Baby boomers have most of the wealth and the housing, so “millennials are doing less well than their parents at the same age.”
Credit Suisse’s researchers said that they expected only a “minority of high achievers and those in high-demand sectors such as technology or finance to effectively overcome the ‘millennial disadvantage’” — and become millionaires, themselves.
(Feature image, courtesy of Pixabay)