The world's wealthy elite are set to inherit over $70 trillion in the next decade, with experts warning that this massive transfer of wealth will only widen the gap between the rich and the poor, exacerbating global inequality.
According to a report commissioned by South African President Cyril Ramaphosa, more than eight out of ten countries worldwide are experiencing rising income inequality. This trend is expected to continue unless drastic action is taken to address it.
Wealth disparities have become so severe that 83% of all countries, accounting for 90% of the global population, meet the World Bank's definition of high inequality. Furthermore, these countries are seven times more likely to experience democratic decline than those with lower levels of inequality.
The report highlights a worrying trend: the world's top 1% have captured an astonishing 41% of all new wealth between 2000 and 2024, while the bottom 50% receive only 1%. This is set to continue, with estimates suggesting that over $70 trillion in inherited wealth will be passed down to future generations by 2035.
As Nobel Prize-winning economist Joseph Stiglitz notes, "Wealth inequalities have a forward momentum... as compound interest increases fortunes and, in the absence of effective inheritance taxes, wealth is handed down from one generation to another."
The report's findings underscore the urgent need for governments around the world to address this critical issue. Campaigners are now pushing for the G20 nations to establish a permanent monitoring group to track trends and evaluate policies aimed at reducing inequality.
South African President Ramaphosa has hailed the report as a "blueprint for greater equality" that will support his country's efforts to put inequality on the international agenda. He warns that ignoring this issue is a betrayal of people's dignity, threatening democratic institutions and inclusive growth.
With several G20 countries expected to back calls for such a monitoring group, including Germany, this report serves as a stark reminder that time is running out to address the root causes of global inequality.
According to a report commissioned by South African President Cyril Ramaphosa, more than eight out of ten countries worldwide are experiencing rising income inequality. This trend is expected to continue unless drastic action is taken to address it.
Wealth disparities have become so severe that 83% of all countries, accounting for 90% of the global population, meet the World Bank's definition of high inequality. Furthermore, these countries are seven times more likely to experience democratic decline than those with lower levels of inequality.
The report highlights a worrying trend: the world's top 1% have captured an astonishing 41% of all new wealth between 2000 and 2024, while the bottom 50% receive only 1%. This is set to continue, with estimates suggesting that over $70 trillion in inherited wealth will be passed down to future generations by 2035.
As Nobel Prize-winning economist Joseph Stiglitz notes, "Wealth inequalities have a forward momentum... as compound interest increases fortunes and, in the absence of effective inheritance taxes, wealth is handed down from one generation to another."
The report's findings underscore the urgent need for governments around the world to address this critical issue. Campaigners are now pushing for the G20 nations to establish a permanent monitoring group to track trends and evaluate policies aimed at reducing inequality.
South African President Ramaphosa has hailed the report as a "blueprint for greater equality" that will support his country's efforts to put inequality on the international agenda. He warns that ignoring this issue is a betrayal of people's dignity, threatening democratic institutions and inclusive growth.
With several G20 countries expected to back calls for such a monitoring group, including Germany, this report serves as a stark reminder that time is running out to address the root causes of global inequality.
This wealth gap is getting crazy! Like, 41% of new wealth goes to the top 1% and only 1% for the bottom 50%! What's wrong with our system? 
They're just gonna pass it down to their kids and grandkids like they own the place... it's so unfair! 
It's not just about inheritance taxes... I think we need a broader conversation about what's driving this kind of wealth concentration.
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. And it's making it so hard for people to get ahead in life. I feel like we need some serious systemic change here 
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️. And then you add this $70 trillion thing... it's like they're planning some kind of intergenerational time bomb 
. We need to do something about this ASAP, or else we'll just see more people getting left behind and unhappy 
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. And what really gets my goat is that this wealth is being passed down to future generations without any thought for those who didn't get a fair shake in life 
. It's like we're all stuck in some kind of never-ending cycle of unfairness 
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. And if we don't address this inequality soon, I fear our societies are going to start to unravel like a thread 
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. And then we're supposed to be surprised when inequality keeps going up and democracy starts to slip? It's like, come on folks, we need to do something about this before it's too late 
. The thing is, inheritance taxes could be a game-changer here – just think about it, if we taxed that kind of wealth properly, maybe we could start closing some of those huge gaps between rich and poor 
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It's like they're trying to turn their kids into tiny little versions of themselves, so they can carry on the family fortune 
. And don't even get me started on the "democratic decline" part... just great, another way for the rich to consolidate power and ignore the rest of us 
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