The level of social inequality is rising across the globe. The global financial crisis created an economic conjuncture that makes the rich richer, whilst the poor become poorer. According to the Boston Consulting Group’s Global Wealth Report, the top 1 percent of the world’s population control assets valued at 52.8 trillion USD (1.75 quadrillion Roubles. 40.6 trillion Euros. 34.7 trillion UK Pounds), whilst the total wealth of the world is equal to 135 trillion USD (4.5 quadrillion Roubles. 104 trillion Euros. 89 trillion UK Pounds). In other words, the top 1 percent control 39 percent of the world’s wealth. The ultra-rich, i.e. people with a liquid net worth higher than 5 million USD (165 million Roubles. 3.9 million Euros. 3.3 million UK Pounds), control around a quarter of the world’s private wealth. The wealth of the ultra-rich is likely to increase, despite the economic crisis. The main sources of growth are their investments in financial assets such as stocks and bonds. The world’s central banks are running liquidity injection programmes that increase the prices of stocks and bonds, whilst simultaneously reducing the purchasing power of average citizens through inflation and currency debasement. Ordinary people don’t have significant stock investments, whilst the top 5 percent control more than 60 percent of all individually held shares.
Boston Consulting Group predicted that the “high net worth individuals” would see their wealth grow at 8 percent per year, while those high a net worth above 10 million USD would have their wealth grow by 9.2 percent per year in the next 5 years. The inequality between the rich and the poor would increase because all the central banks and the governments of the developed world design their stimulus programmes to ensure that the wealthy are protected from the economic crisis and that their wealth continues to grow. Given that the developed economies have no organic growth, and that currency debasement acts as a tax on the poor, the ultra-rich are actually benefiting from reducing the wealth available to the poor. Any system designed to promote and strengthen social injustice and inequality will fail, eventually. Usually, economic crises or social unrest brings down such systems.
29 June 2013
Voice of Russia World Service
What we have under Obama is bad. What we would’ve had under Wet Willy would’ve been worse. The Republicans want to dismantle ALL New Deal programmes, including Social Security. That’s how greedy they are. Here’s the irony… the Republicans in the Southern USA who offer businesses “sweetheart deals” to move there can only do so due to cheap hydropower created by federally funded projects such as the TVA. That is, Free Enterprise is a bloodsucking parasite that can only operate AFTER the government has “primed the pump”. Note well that the righties scream that we can’t allow the big banks to fail… yet, that’s what they scream about with smaller enterprises. In short, it’s a racket. If you work for a living or receive a government cheque and you vote for Republicans, you’re a damned fool, and I say so openly. You’re putting a gun to your own head. Get real and get smart…