You & 3 Billion Others Own Less Than the 85 Richest
|January 22, 2014||Posted by Staff under Inequality / Concentration|
This 2014 excerpt of USA Today, Jan 20, is by Kim Hjelmgaard.
Almost half of the world’s wealth is owned by just 1% of the world’s population, according to a report published just days before the start of the World Economic Forum’s annual meeting, where the topic of rapidly increasing income disparities will be a major focus.
In its study titled Working for the Few, the British-founded development charity Oxfam concludes that the $110 trillion wealth of the 1% richest people on the planet is some 65 times the total wealth of those floundering at the “bottom half” of the world’s population.
Further, this poorer “bottom half” now has about the same amount of money as the richest 85 people in the world, and the wealthiest grew their share of bounty in 24 out of 26 countries surveyed between 1980 and 2012, the study says.
“This massive concentration of economic resources in the hands of fewer people presents a significant threat to inclusive political and economic systems. Instead of moving forward together, people are increasingly separated by economic and political power, inevitably heightening social tensions and increasing the risk of societal breakdown,” the report says.
The World Economic Forum has identified income inequality as one of the greatest risks facing the world in 2014, and it will be a big topic of discussion during the organization’s annual meeting in Davos, Switzerland.
Ed. Notes: People own less than they need. To deal with that, Oxfam calls for redistribution, minimum wage, and more bureaucratic programs. But are those policies — which are already in place — actual solutions? Instead of “take from the rich to give to the poor” — a downstream strategy — maybe don’t create the undeserved rich in the first place. Humanity would be wiser to predistribute society’s surplus, thus precluding the amassing of undue fortunes — an upstream strategy.
What makes the rich rich and the poor poor is society’s spending for nature, for land and resources, for the very valuable goodies that nobody’s labor or capital brought into existence. Now, thanks to deeds and loans and other social contracts, we direct all that spending into the pockets of the very few. Using different social contracts, such as fees, dues, leases, even taxes, we could direct all that spending into the public treasury then pay it back out as monthly dividend checks to the citizenry.
It’s fair, since nobody made land, everybody needs land, and all of us — society in general — make land valuable, just by generating population density. And it’s efficient, because Earth’s worth is a social surplus. Since nobody had to be rewarded to create land (unlike producing goods and services), the receipt of “rent” is a bonus to lenders and absentee owners.
Along with “god-given” land, resources, EM spectrum, and ecosystem services, there are also government granted privileges, such as corporate charters and utility franchises. Together, nature and privilege are worth many trillions each in the US alone. It’s the stuff of vast inequality, presently, but it could become the extra income for everyone.
To cut to the root of the problem, we need to share Earth by sharing her worth. It’s a huge solution that fits a huge problem. It’s called geonomics and it’s something the Oxfams of the world need to look into.