Global inequality is on the rise, with half of the world’s wealth controlled by one percent of the population, according to Credit Suisse Group AG (ADR) (NYSE:CS)
The very rich are squeezing the middle class, according to the research from the multinational financial services holding company headquartered in Zurich. The research also revealed that for the very first time, there are more people in the middle classes in China than in the United States. The world’s most populous country has 109 million while the US has 92 million.
Tidjane Thiam, CEO of Credit Suisse, said the middle class wealth has grown at a slow pace compared to the one percent. He added that this has reversed the pre-crisis trend, which saw the number of the middle class wealth remain stable over time.
$3,210 Puts You In The 50 Percent
The Creddit Suisse report shows that a person only needs $3,210 to be in the wealthiest 50 percent of world citizens. A little over $68,000 puts you in the top ten percent while the one percent is made up of those who have more than $759,900. The report has wealth as the value of assets including property and stock investments, but does not take in debt.
A little over 3 billion people have wealth of less than $10,000. One billion have between $10,000 and $100,000. Just eight percent of the population (383 million) have wealth of more than $100,000. Of those 383 million, 34 million are from the US. About 123,800 of that number have more than $50 million and 45,000 have more than $100 million.
The UK has the third highest amount of people with that kind of money.
The report also said that wealth inequality has continued to increase the last seven years, with the one percent now controlling 50.4 percent of the world’s wealth.
Oxfam, an international confederation that tries to find solutions to poverty and injustice around the world, predicted at the start of this year that this would happen in 2016. Mark Goldring, Oxfam’s CEO, says world leaders need to tackle this problem right away. He says this report is the latest evidence that extreme inequality is out of control. He finished by asking if we’re happy to see one percent own half while the poorest half owns just one percent.
The report by the company concludes that global wealth has fallen this year. According to them, this is mainly because of the strength of the dollar, the currency which the company uses for its calculations.
Countries With Millionaires
In 2014, the UK was said to be the only member in the G7, a group which represents more than 64 percent of the net global wealth, where inequality had risen the last 100 years.
Numbers from Credit Suisse say that there are around 2.4 million millionaires in the UK, up almost 70,000 from last year. On the other hand, the US has more than 15 million millionaires, up more than 900,000 from 2014.
The top 20 countries with ultra high net worth individuals are: United States, China, United Kingdom, Germany, Switzerland, France, Italy, Japan, Canada, Taiwan, India, Australia, Russia, Korea, Hong Kong, Brazil, Sweden, Spain, Indonesia and Turkey.