40% of world's wealth owned by 1% of population

[suntzu]

Could this be the reason why the stock market is still chugging along despite inverted yield curve, slowing housing market, etc. Consumer spending by this 1% seems to be driving the economy - see high-end retailer stocks.

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40% of world's wealth owned by 1% of population
Last Updated: Tuesday, December 5, 2006 | 3:34 PM ET - CBC News

The richest one per cent of adults own 40 per cent of the world's household wealth, while half the world shares barely one per cent, said a report released Tuesday.

The study releasedby the Helsinki-based World Institute for Development Economics Research, part ofthe United Nations University, emphasizes the continuing disparity between rich and poor.

'Income inequality has been rising for the past 20 to 25 years and we think that is true for inequality in the distribution of wealth.'-Canadian economist James Davies, an author of the report

It took more than $500,000 US to be among the richest one per cent of adults in the world, according to the report. Therichest 10 per cent of adults needed $61,000 US in assets defined as the value of physical and financial assets less debts.

In contrast, 50 per cent of the adults in the world owned barely one per cent of the household wealth.

The bulk of the wealthiest adults are concentrated in North America, Europe and Japan, the researchers said. For example, North America accounted for only six per cent of the world's adults, but held 34 per cent of its household wealth.

"Income inequality has been rising for the past 20 to 25 years and we think that is true for inequality in the distribution of wealth," said James Davies,one of the report's authors and a professor of economics at the University of Western Ontario.

"There is a whole group of problems in developing countries that make it difficult for people to build up assets, which are important, since life is so precarious," Davies said.

Canadians averaged $70,916 US in assets

Canada's net worth per capita came in at $70,916 US, putting it just ahead of Denmark.

Average net worth in the United States amounted to $143,867 per person in 2000, while it reached $180,837 in Japan.

At the bottom end of the scale were Ethiopia with per-capita wealth of $193 and Congo at $180.

Global household wealth amounted to $125 trillion in 2000, roughly three times value of total global production, or $20,500 per person.

[divx]

Old news, it takes effort to become richer, but not impossible nevertheless.

[BadDrafter]

Only 40%, hmm.... they seem to be going down in influence.

I remember a time when the ratio was much higher than that.

I guess the stronger they grasp on to money the further it slips through their fingers.

<edit I diddnt know they were throwing countries with negative value like Congo in, that would explain why it's so diluted. A better metric would be how the super rich compare to the working classes in their own countries.>

[konfusion666]

Only 40%, hmm.... they seem to be going down in influence.

I remember a time when the ratio was much higher than that.

I guess the stronger they grasp on to money the further it slips through their fingers.

that's actually a very good point. it shows that "progress" is indeed being made.
wonder what the ratio was during the middle ages or even Pax Romana... what's the "net worth" of a slave?

[anom]

Only 40%, hmm.... they seem to be going down in influence.

I remember a time when the ratio was much higher than that.

I guess the stronger they grasp on to money the further it slips through their fingers.

<edit I diddnt know they were throwing countries with negative value like Congo in, that would explain why it's so diluted. A better metric would be how the super rich compare to the working classes in their own countries.>

I recently read an article that said 1% controlled 50% but now I can't seem to find it

[divx]

Only 40%, hmm.... they seem to be going down in influence.

I remember a time when the ratio was much higher than that.

I guess the stronger they grasp on to money the further it slips through their fingers.

<edit I diddnt know they were throwing countries with negative value like Congo in, that would explain why it's so diluted. A better metric would be how the super rich compare to the working classes in their own countries.>

Perhaps it's because the super rich donated billions in recent years to charity?

[eliteblaze]

really only 40%? we need to start lowering taxes

[gordholio]

Old news, it takes effort to become richer, but not impossible nevertheless.

Many rich people sacrifice family to become rich and live under a ton of stress.
I'd rather just be content with what I have, which is enough to enjoy a few things.

[divx]

really only 40%? we need to start lowering taxes

Bush was already ahead of you
Can't lower tax in Canada, health care cost too much

[divx]

Many rich people sacrifice family to become rich and live under a ton of stress.
I'd rather just be content with what I have, which is enough to enjoy a few things.

What you have already qualify you as rich in the world standard.

[eliteblaze]

No that's just vodoo economics, I don't think the US is getting wealthier.

Bush was already ahead of you
Can't lower tax in Canada, health care cost too much

[ShadowVlican]

only going to get worse as everyone works to become that 1% by climbing corporate ladders and ***** like that....

[Emendo]

I recently read an article that said 1% controlled 50% but now I can't seem to find it

I think that one is 1% of adult controlled 50% of wealth. Of course, I think most babies are borned with 0 dollars in asset.