New figures suggest top 1% could own two-thirds of global wealth by 2030

Research suggests British people worried by growing political power of global super-rich

The top 1% of the world’s population could own two-thirds of the planet’s wealth by 2030 if inequality grows at the same rate as it has since the financial crash.

Today, it’s estimated that the top 1% now command around 50% of global wealth – worth $140 trillion.

New research commissioned from the House of Commons library for the All-Party Group on Inclusive Growth suggests that if nothing changes and the richest 1% pile up wealth at the rate seen since the financial crash, by 2030, that £99 trillion becomes £217 trillion – bigger than the combined economies of most of the G20.

The figures were first presented by Liam Byrne MP, chair of the All-Party Group on Inclusive Growth, to the Global Parliamentary Network of the Organisation for Economic Co-operation and Development. The OECD network connects members of Parliament around the globe to provide the latest data and analysis from the Paris-based international organisation, and to help MPs compare policies and best practices across countries. The APPG on Inclusive Growth hosted the OECD network for its annual “On the Road” meeting at the Houses of Parliament 4-5 April.

The new figures were accompanied by new research on British people’s attitudes to inequality, which founds most people expect the top 1% to ‘have the most power’ in the world by 2030. Most people think that in today’s world (2018) by a narrow margin, national governments have the most power.

The new research, carried out by insight agency Opinium, finds that 43% of respondents believe that the world’s super-rich would enjoy unfair influence on government policies as a result of growing inequality, while 41% said they were most worried by rising levels of corruption.

71% of respondents said that it was the responsibility of national governments to do something about global inequality.

Liam Byrne MP, co-chair of the All-Party Group on Inclusive Growth, said:

“British people are worried about growing inequality and the power that the world’s super-rich will have to bend the rules in their favour.

“If we allow inequality to grow as it has for the last decade, the top 1% of the world’s rich people will own two-thirds of the planet’s wealth.

“We are approaching a tipping point on global inequality. Unless we act soon to stop this spiralling inequality, it will be too late.

“Voters hold national governments accountable for dealing with spiralling inequality and for preventing the corruption it creates.

“It’s time to stop just fretting about inequality and start doing something about it. If we want to avoid a world of rich and remote elites, we need to start rewriting the rules for how our economy works now.

“The G20 has agreed to put inclusive growth centre stage at its conference in November, but if we’re to make progress, we need to get policy options on the table today.”

George Freeman MP, co-chair of the All-Party Group on Inclusive Growth, said:

“History suggests that inequality is the price that liberal democracies pay for progress.

“Whilst mankind has never seen such income inequality, it is also true that mankind has never experienced such rapid increases in living standards. Around the world billions are being lifted out of poverty at a pace never seen before.

“But the extraordinary concentration of global wealth today – fuelled by the pace of technological innovation and globalisation – poses serious challenges.”

Commenting on the findings, Opinium senior research executive Jack Tadman said:

“It’s clear from our study that the UK is acutely aware of growing global inequality, as highlighted in the House of Commons research on Inclusive Growth, and are looking for governments to lay down firm policies to help reverse this trend. We found that although Millennials, alongside their older generations, are looking primarily to national governments to act, they were more likely than others to call upon businesses and ‘the 1%’ to also take responsibility for action.”

Ends

Notes

Liam Byrne’s opening speech setting out practical measures for reform can be found here: https://www.inclusivegrowth.co.uk/rewrite-the-rules/

Details of the Opinium polling can be found here:  https://www.inclusivegrowth.co.uk/research-suggests-british-people-worried-growing-political-power-global-super-rich/

Details of the new House of Commons research can be found here: https://www.inclusivegrowth.co.uk/house-commons-library-research/ 

Polling headlines include:

1. Most people think inequality is ‘growing rapidly’ (35%) or growing slowly (27%). Only 10% think inequality is shrinking

2. People think the biggest risks of this shift is rising levels of corruption (41%) or ‘super-rich enjoying unfair business influence on government policy (43%). ‘Increased risk of state breakdown’ polls third at 36%.

The All-Party Parliamentary Group on Inclusive Growth brings together reformers across politics, business, trade unions, finance, churches, faith groups and civil society, to forge a new consensus on inclusive growth and identify the practical next steps for reform.