In recent decades, extreme world poverty has declined significantly and many millions of people have joined the swelling ranks of the middle class – particularly in China.
While these economic shifts are positive, it’s the other end of the global wealth spectrum that attracts the most attention. A high degree of wealth creation is amassed by those at the top of the economic pyramid.
The Top-Heavy Wealth Spectrum
Today, slightly less than 1% of the world’s adult population occupies the $1M+ wealth range. Despite their small numbers, this elite group collectively controls 46% of the world’s wealth, valued at approximately $129 trillion.
On the flip side of the equation, 70% of world’s population fall into the sub-$10K wealth band. This majority of people around the world collectively control a mere 2.7% of the world’s wealth.
Even as “the rich get richer”, there is good news for the majority. The percentage of people in that lowest wealth band has been shrinking over the years.
Moneyed Metropolises
Not only is money concentrated among a small portion of the population, those people tend to gravitate towards global cities such as London, Hong Kong, and New York.
In fact, 70% of ultra high net worth individuals (UHNWIs) – persons with investable assets of $30 million or more – reside in just ten cities around the world.
According to Credit Suisse, emerging markets now account for 22% of growth in the UHNWIs category – up from just 6% growth in 2000 – with China alone adding over 16,000 UHNWIs to the mix. Many members of this elite class may generate their wealth in emerging economies around the world, but as we can see from the map above, the world’s richest people end up very concentrated, geographically speaking.
Global Wealth, by Continent
As the visualization below demonstrates, wealth accumulates in Europe and North America. This trend is so pronounced that it only becomes evident once the scale is adjusted to see the detail in the upper percentiles.
One thing is for certain – the world is changing quickly, and just as this graph would have looked very different 20 years ago, global wealth will almost certainly look different in 20 years time.
Thinking about converting to Judaism.
So what is the 1% really doing with the personal wealth they’ve accumulated? They’re basically using it to acquire more personal wealth. At some point you have to ask how much of those assets are liquid and readily convertible.
How much is really enough?
… but the real question everyone ALREADY knows the answer to is THIS…
Why do the rich, instead of accumulating material things and giving themselves and their political thralls awards, not donate their wealth for better living conditions for the poor? Cancer research for children’s hospitals? Drilling for clean water, or investing in economic development programs and loans outside the financial system?
It’s a small club, and if you’re not in it, you might be working for it. Real wealth is in land – and people.
Because they’re psychopaths.
Yes.
Life is like a shit sandwich; the more bread one has the less shit one has to eat.
The folks at the top of that chart sure have most of the bakery goods well covered and spoken for.
The rest of us can eat shit and die.
That is, after all, the endgame of The Evil Fucker’s NWO, n’est-ce pas?
Could it be? I live in these Unites States and make less than 10k/yr and have no debt. Properties, paid for. Autos, paid for. No credit and no bills other than auto ins and internet. The plan is to get to zero before that choice is made for me.
The left chart tells the real story. 70% of the world has zero. So if you have $1, you have as much as all of them combined. The right hand side chart really shows that the top 10% – the affluent ofthe developed world – own everything, with a heavy skewing towards the top 10% of the top 10%. – ie those with a net worth of $1 million plus. Much as you would expect to see.
The billions in India, China, Africa, etc. have zilch, as do half of Americans and Europeans. Of the half of Americans with anything, only 20% of that half have anything to speak of.
Would it be correct to say that the best opportunities, overall, are in Vietnam, Bangladesh, India and Kenya?
Those places are corrupt. If you are corrupt, they will do. If not, places with general rule of law, and large numbers of sheeple, are better.
Yes there are more poor people than rich people in the world. Yes, the richest people live in expensive cosmopolitan cities. Yes, people from North America and Europe have over the past several generations been able to amass more of the global wealth than others. What’s new here that I’m missing?
Do I think that there are many very wealthy people that didn’t earn their wealth in honest ways, of course. Do I think playing Robin Hood and giving their wealth to the poor will help anything, absolutely not. As a matter of fact I think it will make things worse. Look at our current welfare state if you want to know why.
Does it matter that we live in a finite world?
Your point is? Assuming you are implying some sort of collectivism is needed to curb the consumption of the rich. Unfortunately that doesn’t work in the real world. It the Soviet Union the select few received the spoils while the masses all had little. Going that route, which the new crop of politicians all seem to want will only lead to reduced standard of living for us while those advocating for this live comfortably. We can rearrange the deck chairs as to who has the wealth but the outcome will not change. Just like giving aid to the “3rd world” doesn’t end starvation and suffering. There will always be the rich and there will always be the poor. The “middle class” has been but a short blip in the history of the world and we are all very lucky to be part of it.
Homer Simpson “Mr. Burns, you’re the richest man I know”
Mr. Burns “Yes, but I’d trade it all…for just a little bit more”
The wealthy need to consider the plight of the common person. Come up with some plan to deal with insane health insurance costs and the cost of living versus wages. Or suffer the consequences of an angry armed populace. I understand why the wealthy don’t like the population owning guns. They are hard to control. Let them eat cake!
The solution isn’t collectivism. The solution is to unrig the system that steals from the poor to give to the rich.