OFAM released their latest report titled “AN ECONOMY FOR THE 99%” and the facts are shocking
OXFAM latest report reveals that the 1% richest owns more wealth of the rest of the planet.This report is aimed to show the inequality of the society. Couple points you want to know
- Eight men now own the same amount of wealth as the poorest half of the world.
- Over the next 20 years, 500 people will hand over $2.1 trillion to their heirs a sum larger than the GDP of India, a country of 1.3 billion people.
- The incomes of the poorest 10% of people increased by less than $3 a year between 1988 and 2011, while the incomes of the richest 1% increased 182 times as much.
- A FTSE-100 CEO earns as much in a year as 10,000 people in working in garment factories in Bangladesh.
- In the US, new research by economist Thomas Piketty shows that over the last 30 years the growth in the incomes of the bottom 50% has been zero, whereas incomes of the top 1% have grown 300%.
- In Vietnam, the country’s richest man earns more in a day than the poorest person earns in 10 years.
Causes of inequality
- Big Corporations – Big businesses did well in 2015/16 : profits are high and the world’s 10 biggest corporations together have revenue greater than the government revenue of 180 countries combined
- CEO takes it all – The CEO of India’s top information firm earns 416 times the salary of a typical employee in his company. The International Labour Organization estimates that 21 million people are forced labourers, generating an estimated $150bn in profits each year.
- Corporate evade tax -Corporate tax rates are falling all over the world, and this –together with widespread tax dodging –ensures that many corporations are paying minimal tax. Apple allegedly paid 0.005% of tax on its European profits in 2014. Developing countries lose $100bn every year to tax dodging. Kenya is losing $1.1bn every year in tax exemptions for corporations, nearly twice its budget for health – this in a 4 country where women have a 1 in 40 chance of dying in childbirth.
- Shareholders eat profits – 10% of profits were returned to shareholders in 1970; this figure is now 70%
- Capitalism -The world’s third richest man, Carlos Slim, controls approximately 70% of all mobile phone services and 65% of fixed lines in Mexico, costing 2% of GDP
- Rich become richer – 2016 Forbes list, 89% of whom are men, own $6.5 trillion –as much wealth as the bottom 70% of humanity. Read Indian Business News.