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11/02/2024 09:44:03 am

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Oxfam Claims Richest 1% Will Control Over 50% Of World's Wealth By 2016

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(Photo : Reuters) Two richest men in the world shake hands after the inauguration of a new research facility at CIMMYT, in Texcoco outside Mexico City.

The richest one percent of the world could own more wealth than the rest of the world combined by 2016, according to a new Oxfam report.

A growing concern of economic experts claims the wealth inequality globally may cause a financial crisis, alongside making it even harder for the average person to live comfortably.

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The British anti-poverty charity Oxfam will talk on the subject at Switzerland's 45th World Economic Forum, where bankers, executives, world leaders and academics are all expected to attend. Oxfam will also pursue more change on the climate change front.

In terms of numbers, the wealth of the top 85 people in the world is greater than the poorest 3.5 billion people on Earth. The top one percent take up $110 trillion, around 46 percent of the total economy in 2014.

Part of the reason for the massive increase in individual earnings comes from one or two people making large scale companies, instead of a wide range of family or business contacts taking a slice of the company's ownership.

This has propelled people like Facebook's CEO Mark Zuckerberg, Space X and Tesla Motors CEO Elon Musk and Amazon CEO and Chairman Jeff Bezos into the top 100 spots, without any other member from the company achieving the same level of wealth.

Several economic experts claim the current model is unsustainable, and unless significant investment happens within the next 10 years to spread the wealth we could have a financial crash on the scale of 1929, putting hundreds of millions of people out of jobs.

President Obama is scheduled to speak on new taxes for the super-rich, alongside the removal of a loophole allowing heirs to inherit money without tax. Several other laws are being pushed in Europe, although some political figures claim not enough is being done.

Several super-rich people have become philanthropists, committed to removing most of their wealth at death and heavily investing in new advancements for undeveloped countries. Bill Gates has been investing billions into disease eradication in Africa.

Some other faces in Silicon Valley and worldwide do not share the drive of Gates. Google's CEO Larry Page claimed he would rather invest in Elon Musk than charity, and it looks like Google will invest $1 billion into Space X soon.

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