Republished from Wonky News Nerd
One of the great canards perpetuated by people on the political right is that those of us interested in reducing income and wealth inequality seek to punish success. The left, it is argued, consists largely of grasping, envious, anti-capitalist crazies who want everyone brought down to the same, impoverished standard of living -- because Marx ... or something.
However, in a new report UK-based charity Oxfam International argues global inequality is becoming so severe that it threatens economic growth and could make it impossible to eliminate extreme poverty around the world. If Oxfam is right, one hardly has to be a Leninist revolutionary or a Maoist cultural warrior to see that as a big problem. According to Oxfam:
The consequences are corrosive for everyone. Extreme inequality corrupts politics, hinders economic growth and stifles social mobility. It fuels crime and even violent conflict. It squanders talent, thwarts potential and undermines the foundations of society.
Crucially, the rapid rise of extreme economic inequality is standing in the way of eliminating global poverty. Today, hundreds of millions of people are living without access to clean drinking water and without enough food to feed their families; many are working themselves into the ground just to get by. We can only improve life for the majority if we tackle the extreme concentration of wealth and power in the hands of elites.
Among the report's most startling findings:
- Since the financial crisis in 2008, the worldwide number of billionaires has more than doubled. There are 1,645 of them today.
- Seven out of 10 people live in countries where the gap between rich and poor is greater than it was 30 years ago.
- The richest 85 people on the planet own as much as the poorest half of the worldâs population and are rapidly getting richer. From March 2013 to March 2014, those 85 people added $668 million in wealth every day.
- Countries with extreme economic inequality experience nearly four times the number of homicides as countries with more equality.
- The aggregate wealth of today's billionaires has increased by 124 percent in the last four years and is now approximately $5.4 trillion. This is twice the size of France's GDP in 2012.
To combat inequality, Oxfam suggests a number of measures, including "national wealth taxes" and possibly a global wealth tax on the richest individuals. Other ideas include doing more to economically empower women, raising wages, working to provide free, high-quality healthcare and education for all citizens by 2020 and implementing "a universal and permanent [social] safety net."
The report, called "Even it Up: Time to End Extreme Inequality," coincides with the launch of a new public information campaign with the same name. In a blog post, Oxfam International Executive Director Winnie Byanyima said: "We want this to be a wake-up up call for all We want this to be a wake-up up call for all of us: governments, companies and citizens need to act now to change the status quo."
The video embedded below provides additional information: