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Millions fell into poverty during the pandemic, billionaires’ wealth soared

A new report found that the coronavirus pandemic exacerbated the large financial disparity between the rich and the poor around the world. Research group analysis published on Tuesday. Their net worth increased by more than $ 3.6 trillion in 2020 alone, boosting the share of global household wealth to 3.5%. At the same time, the pandemic has driven about 100 million people into extreme poverty, reaching 711 million worldwide in 2021. According to World Bank estimates quoted by the analysis. More people would have been in poverty if many developed countries had not carried out relief efforts to protect their population from the economic consequences of the COVID-19 pandemic. “The COVID crisis has exacerbated inequality between the very wealthy and others,” said Lucas Chansel, lead author of the report and co-director of the lab. “But in rich countries, government intervention prevented a significant increase in poverty, but not in poor countries.” The World Inequality Report reports a study of more than 100 people around the world. Based on more than 4 years of research by the people. Emmanuel Saez and Gabriel Zucman, long-time inequality experts at the University of California, Berkeley, and Thomas Piketty at the Paris School of Economics coordinated the report with the Chancel. It has been unequal for a long time. Deregulation, privatization, progressive tax cuts, and large-scale privatization in emerging economies have helped boost wealthy wealth in recent decades, according to the report. .. He said global inequality was close to the peak of Western imperialism in the early 20th century. “The research we’ve done actually shows these claims, or this idea of ​​trickle-down economics-it doesn’t pass the scrutiny of the data,” he said. “The important lesson learned from the data over the last 40 years is that lowering the maximum tax rate has not caused prosperity for everyone.” The report reports that the wealthy people are able to generate income that the government can use. We recommend that you impose taxes on your income. Reduce inequality and invest in education, health and ecosystem measures. In the United States, some Democrats have recently highlighted plans to tax millionaires to pay for the proposed expansion of the social safety net, but that effort has declined rapidly. bottom. Analysis shows that in 2021, the world’s population will dominate 76% of the world’s wealth. In contrast, the bottom 50% own only 2%. On the other hand, the middle 40% owns 22%. In terms of income, the top 10% make up 52% ​​of the world’s income, while the bottom 50% make only 8%. The middle 40% is 39%. The wealthy are getting richer. The top 1% gained 38% of global wealth growth between 1995 and 2021, while the bottom 50% secured only 2%. Much faster rate-between 3% and 9% per year during that period. But half of the poorest saw their wealth grow only between 3% and 4% per year. And since they own little wealth, the overall amount did not increase much. Wealth gaps vary widely from region to region. Latin America is the top 10%, which dominates 77% of wealth, and only 1%. In contrast, Europe has the smallest gap. The top 10% own 58% of total assets, while the bottom 50% are 4%. Numerous public programs available to low-income and middle-class residents, such as free education, medical care, and culture, Chansel said, “To public services,” explains why Europe is a less unequal society. Europe, with a very generous system of access, has so far been able to curb the rise of inequality, but the United States has not. Although global income inequality has narrowed slightly, it remains. The global income gap, which accounts for high levels of income such as wages, salaries, interest and dividends, has narrowed slightly since 1980, as in China. “In China, India, Brazil and emerging countries, average income is rising faster than in Europe and the United States,” he said. “This effect reduces global inequality between people living in China and those living in other parts of the world.” The average income of the top 10% of the world is 38 times the average income of the bottom 50. bottom. The percentage in 2020 was 53 times that in 1980. However, current levels are comparable to the income inequality of 1910, when the average income of the top 10% of the world was 41 times higher. In emerging countries such as China and India, inequality in these countries is widening. “This really slows progress in terms of reducing global inequality,” he said. “And this has also slowed progress in poverty reduction.” This study adjusted national income to explain the difference in cost between goods and services, a practice known as purchasing power equality. increase. While much of the data in the report focuses on income, researchers have also investigated the impact of these factors on the gap in pre-transfer inequality in taxes and government benefits. They found that while taxes and transfers moderately reduced inequality, inequality remained “very high” in areas that were already very unequal. Women’s Income Still Lays Men’s Income Analysis provides the first estimate of global income inequality by gender. Labor income from 2015 to 2020 is just under 35%, but varies widely from less than 10% to 45% depending on the country. Its share is highest in the former Soviet Union countries and lowest in sub-Saharan Africa and parts of the Middle East. At current growth rates, it will take more than a century for women’s income to equal that of men’s. The report was found.

A new report found that the coronavirus pandemic exacerbated the large economic gap between the rich and the poor around the world.

Last year, millionaires around the world have enjoyed a surge in wealth share since the Institute for World Inequality began to hold records in 1995, according to a research group analysis released Tuesday. Their net worth increased by more than $ 3.6 trillion in 2020 alone, boosting the share of global household wealth to 3.5%.

At the same time, the World Bank estimates quoted by the analysis have driven about 100 million people into extreme poverty, an increase to 711 million worldwide in 2021. If many developed countries had not carried out relief efforts to protect their population from the economic consequences of the COVID-19 pandemic, more would have been in poverty.

“The COVID crisis has exacerbated the inequality between the very wealthy and others,” said Lucas Chansel, lead author of the report and co-director of the lab. “But in rich countries, government intervention prevented a significant increase in poverty, but in poor countries it was not.”

The World Inequality Report is based on more than four years of research by more than 100 researchers around the world. Emmanuel Saez and Gabriel Zucman, long-time inequality experts at the University of California, Berkeley, and Thomas Piketty at the Paris School of Economics have coordinated the report with the Chancel.

in the meantime COVID-19 deepened the division The world has long been unequal between the rich and the poor. Deregulation, privatization, progressive tax cuts, and large-scale privatization in emerging economies have helped boost wealthy wealth in recent decades, according to the report. .. He pointed out that global inequality is near the peak of Western imperialism in the early 20th century.

“The research we’ve done shows that these claims, or this idea of ​​trickle-down economics, don’t really pass the scrutiny of the data,” says Chansel. “An important lesson from the data over the last 40 years is that lowering the maximum tax rate did not cause prosperity for everyone, as they should have.”

The report recommends that the government impose taxes on the wealthy to reduce inequality and generate income that can be used to invest in education, health and ecosystem measures. In the United States, some Democrats recently planned to tax millionaires to pay for the proposed expansion of the social safety net, but that effort soon diminished. ..

Here are five more findings from the report:

The gap between world wealth and income is huge

According to the analysis, the wealthiest 10% of the world’s population will dominate 76% of the world’s wealth in 2021. In contrast, the bottom 50% own only 2%. On the other hand, the central 40% owns 22%.

In terms of income, the top 10% make up 52% ​​of the world’s income, while the bottom 50% make only 8%. The middle 40% is 39%.

The rich are getting richer

According to the report, the top 1% gained 38% of global wealth growth between 1995 and 2021, while the bottom 50% secured only 2%.

The wealth of wealthy people expanded at a much faster rate-between 3% and 9% per year during that period. But half of the poorest saw their wealth grow only between 3% and 4% per year. And since they have little wealth, the total amount did not increase much.

Wealth disparities vary widely from region to region

Latin America has the largest disparity between the top 10%, which controls 77% of wealth, and the bottom 50%, which owns only 1%.

In contrast, Europe has the smallest gap. The top 10% own 58% of total assets, while the bottom 50% are 4%.

According to Chansel, the large number of public programs available to low-income and middle-class residents, such as free education, medical care and culture, is one of the reasons why Europe is not an unequal society.

“Europe, with a very generous system of access to public services, has so far been able to curb the rise of inequality, but the United States has not been able to do so over the past few decades.” He said.

Global income inequality has narrowed a bit, but remains high

Global income inequality, which accounts for income such as wages, salaries, interest and dividends, has declined somewhat since 1980 as China and several other large developing countries have caught up with North America and Europe.

“Average income is rising faster in China, India, Brazil and emerging markets than in Europe and the United States,” Chansel said. “This effect reduces global inequality between people living in China and people living in other parts of the world.”

The average income of the top 10% of the world is 38 times the average income of the bottom 50% in 2020, 53 times that of 1980. However, current levels are comparable to the 1910 income inequality. The top 10% of the world was 41 times higher.

However, despite rising average incomes in emerging economies such as China and India, inequality in these countries is widening.

“This really slowed progress in reducing global inequality,” he said. “And this has also slowed progress in terms of poverty reduction.”

This study adjusts national incomes to explain the difference in cost between goods and services, a practice known as purchasing power parity.

Much of the data in the report focuses on income inequality before the transfer of taxes and government benefits, but researchers have also looked at the impact of these factors on the gap. They found that while taxes and transfers moderately reduced inequality, inequality remained “very high” in areas that were already very unequal.

Women’s income still lags behind men’s income

This analysis provides the first estimate of global income inequality by gender.

Women’s share of total work income is less than 35% between 2015 and 2020.

However, this number varies widely from country to country and ranges from less than 10% to 45%. Shares are highest in the former Soviet Union countries and lowest in sub-Saharan Africa and parts of the Middle East.

At current growth rates, the report states that it will take more than a century for women’s income to equal that of men’s.

Millions fell into poverty during the pandemic, billionaires’ wealth soared Source link Millions fell into poverty during the pandemic, billionaires’ wealth soared

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