Why to tax the ultra-rich: Oxfam report highlights growing wealth of billionaires

The annual inequality report, 'Takers Not Makers' states that the wealth of global billionaires increases by $5.7 billion a day, much of which is not earned but seized.
The richest individuals, including Musk, Bezos, Zuckerberg, Ellison, and Arnault, continue to shape the global political and economic landscape, with their influence growing.
The richest individuals, including Musk, Bezos, Zuckerberg, Ellison, and Arnault, continue to shape the global political and economic landscape, with their influence growing.
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In 2024, the wealth of the world’s billionaires soared by an astounding $2 trillion (£1.64 trillion), a growth rate three times faster than the previous year, averaging $5.7 billion per day, according to an Oxfam report. This surge marks a significant shift in wealth accumulation, with the global economy now on track to produce five trillionaires within the next decade, a stark contrast to last year’s projection of just one.

The findings are part of Oxfam’s annual inequality report --Takers Not Makers, released in tandem with the high-profile World Economic Forum meeting in Davos, where political leaders and the ultra-wealthy converge to discuss global issues.

Guardian reported on Monday that the Oxfam report paints a troubling picture of global inequality. While billionaires’ fortunes continue to balloon, the number of people living below the World Bank's poverty line of $6.85 a day has stagnated, with nearly 3.6 billion people (44% of the world’s population) still struggling to meet basic needs. Women, in particular, face disproportionate hardships, as one in ten women live in extreme poverty, compared to fewer men, with 24.3 million more women than men enduring poverty below $2.15 a day. Oxfam warns that the fight against poverty has stalled and could be accelerated three times faster if inequality were addressed.

The UK stands out with the highest proportion of billionaire wealth derived from monopolies and cronyism among G7 countries. In 2024, UK billionaire wealth grew by £35 million per day, reaching £182 billion. The nation’s total number of billionaires rose to 57, with four new entrants: Mark Dixon (IWG), Sunder Genomal (Page Industries), Donald Mackenzie (CVC Capital Partners), and Jim Thompson (Crown Worldwide).

Most of this newfound wealth can be attributed to rising share prices and higher property values, particularly in the residential real estate market, which accounts for around 80% of global investments.

Worldwide, the number of billionaires grew by 204, bringing the total to 2,769, with their combined wealth increasing by $2 trillion, from $13 trillion to $15 trillion in just one year—the second-largest annual increase since records began. The ten wealthiest men, including Amazon’s Jeff Bezos, SpaceX’s Elon Musk, and Africa’s richest person Aliko Dangote, saw their fortunes rise by almost $100 million daily, leading to a situation where even losing 99% of their wealth would still leave them as billionaires.

Oxfam argues that much of this wealth is not “earned” but “taken,” with 60% of it originating from inheritance, corruption, and monopolistic practices. In fact, 18% of billionaire wealth is derived from monopoly power, underscoring the extent to which wealth accumulation is often disconnected from productive contributions to society.

The richest individuals, including Musk, Bezos, Zuckerberg, Ellison, and Arnault, continue to shape the global political and economic landscape, with their influence growing, especially within tech and corporate spheres. Oxfam advocates for bold and systemic reforms to tackle these imbalances, calling on governments, particularly in the UK, to introduce higher taxes for the wealthiest to reduce inequality. The organization also emphasises the importance of global cooperation, citing the G20 agreement on taxing the ultra-rich as a promising step toward fairer taxation.

Anna Marriott, Oxfam’s inequality policy lead, highlighted the urgency of addressing this issue, stating, “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.”

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