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World Inequality Report: A small elite controls most of the global wealth and power

2025-12-11 07:12:00, Ekonomi CNA

World Inequality Report: A small elite controls most of the global wealth and

A new World Inequality Report warns that fewer than 60,000 of the world's richest people, enough to fill a football stadium, own more wealth than half the entire world combined.

The report highlights extreme gaps in income and wealth, which translate into an unequal distribution of political power, with a global elite reaching 0.001% of the population being three times richer than the bottom 50%.

In stark contrast to their wealth and power, the top contribute disproportionately to public finances. Effective tax rates rise for most of the population, but fall sharply for billionaires and multimillionaires. 

To put this in context, middle-class workers with a high professional salary, such as doctors, teachers, and engineers, pay a higher proportion of their income in taxes than a billionaire whose wealth is based on offshore structures or capital gains.

"Some privileged countries have the advantage of borrowing cheaply and investing in relatively more profitable assets, and this advantage was first described in the 1960s as the 'excessive privilege' of the United States, emphasizing that it was not the result of particularly skillful investment but of the central role of the dollar," the report explained.

Europe, Japan and other advanced economies now enjoy a similar arrangement, while developing and low-income countries are in the opposite position. This involves paying high interest on their debts, holding low-yielding reserves and transferring income abroad every year./CNA





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