Prepare for the Era of Billionaires Turning Trillionaires!
Five individuals are predicted to accumulate a staggering $1 trillion in wealth within the next decade, as suggested by Oxfam's annual inequality report. This forecast, released recently, indicates that the world's wealthiest individuals are on an unstoppable climb. At the forefront is Elon Musk, the CEO of Tesla and SpaceX, currently worth over $430 billion, who is expected to surpass this threshold in just under five years.
Following closely, Jeff Bezos, the founder of Amazon, Larry Ellison, the founder of Oracle, and Mark Zuckerberg, CEO of Meta, along with Bernard Arnault and his family, the CEOs of LVMH respectively, are all on track to join this elite club.
This report, which draws on data from Forbes, coincides with the start of the World Economic Forum meeting in Davos, Switzerland, an annual gathering of influential figures. Its timing also precedes the inauguration of President-elect Donald Trump.
The past year has been a lucrative one for the global wealthy class, with a booming US stock market contributing to their substantial wealth increase. In fact, Oxfam revised its prediction from the previous year, estimating that more than one trillionaire would be crowned within the next decade.
Rebecca Riddell, the senior policy lead at Oxfam America, highlighted the inequity of this phenomenon, stating, "That's an unimaginable amount. This extreme inequality is nothing to celebrate."
In 2023, billionaire numbers expanded by over 200 to nearly 2,770, while their collective wealth skyrocketed to an astonishing $15 trillion. In the United States alone, where 816 billionaires reside, this group saw a $1.4 trillion increase in their net worth.
Moreover, even if one of the richest ten men were to lose 99% of their wealth, they would still fall within the billionaire bracket.
Meanwhile, the number of people living in poverty has remained relatively stagnant since 1990, according to the report, citing World Bank data.
The Role of Inheritance
In its latest report, entitled "Takers not Makers", Oxfam sheds light on the fact that more than one-third of billionaires' wealth is derived from inherited assets. This trend has continued since 2023, when more billionaires amassed their wealth through inheritance rather than entrepreneurship. Notably, every single billionaire under the age of 30 has inherited their wealth.
Two-thirds of countries do not impose inheritance taxes on direct descendants, Riddell pointed out. Furthermore, the gutted estate tax in the United States has allowed the wealthy to effectively evade such taxes.
With the wealthiest increasingly exerting their political influence, Oxfam is urging governments to ensure that the affluent and corporations contribute their fair share of taxes.
Wealthy Influence on Politics
The incoming Trump administration is a prime example of the growing political power of the wealthy. Boasting nearly a dozen billionaires among its ranks, including Musk, who donated over $260 million to Trump's 2024 campaign and is now co-leading the Department of Government Efficiency, the administration is, according to Riddell, emblematic of the rampant power of billionaires within today's political and economic system.
In his final address from the Oval Office, President Joe Biden warned of the concentration of power among a select few ultra-wealthy individuals. He deemed this concentration a serious threat to democracy, basic rights, and fair opportunities for all.
The accumulation of such staggering wealth by these individuals has significant implications for the business world, as their influence can shape various market trends and policies.
Furthermore, Oxfam's report highlights the role of inheritance in wealth accumulation, suggesting that policy changes regarding inheritance taxes could help reduce extreme wealth concentration in future generations.