Social Justice: “The super-rich are getting richer” – Economy

The rich are getting richer. This is confirmed by Allianz’s “Global Wealth Report”, which analyzes financial assets and private household debt in nearly 60 countries. Global financial assets totaled 233 trillion euros in 2021, and at 10.4 percent, they grew at a double rate for the third time in a row. The richest 1 percent of the general population owns 42.9 percent of global net wealth, while the top 10 percent of the wealthy control 86 percent. “The rich are getting richer,” says Arne Holzhausen, head of insurance and wealth markets at Allianz. The distribution has become unfair because emerging markets have not caught up since 2017. Because of a looming global recession and high inflation rates, “the world will remain an unequal place for a very long time,” Holzhausen said.

Relief organization Oxfam came to the conclusion in the spring that it was billionaires who benefited the most during the crisis years. Their number has increased by more than 570 to 2,668 people since 2020. This group shares a fortune of $12.7 trillion.

In the Allianz ranking of the richest companies, the United States of America ranks first with an average net worth per capita of 259,000 euros, followed by Switzerland with 237,000 euros, and Denmark with 183 thousand euros. With the average net worth of its citizens of €69,000, Germany ranks 18th, just behind Italy and France.

Average income is relatively high because the wealth of the rich has a great influence on the account. For comparison: the global average (central value) of per capita wealth is 1,600 euros. This means: 50% of the world’s population owns more, and the other half owns less than 1,600 euros.

Experts expect global financial assets to decline by more than 2% in 2022. This will be the first significant loss of wealth since the 2008 financial crisis. In real terms – taking inflation into account – households could lose a tenth of their wealth. Unlike the financial crisis, which was followed by a relatively quick recovery, the medium-term outlook this time around is poor. “The year 2021 marks the end of an era,” said Ludovic Subran, chief economist at Allianz. “The past three years have been exceptional, a real windfall for most savers. Not only 2022, but the coming years will be different as well,” Sobran said. The inflation crisis has put the social contract to the test. Politicians face the formidable challenge of overcoming the energy crisis, securing a green transition and creating growth – while simultaneously squeezing the brakes. “There is no room for error now,” Subran said.

Several “wealth reports” are published each year, written by banks, insurance companies, consulting firms, and NGOs. The results give an impression of the distribution of wealth, they are not accurate, after all there is no accurate census of wealthy people around the world that would provide accurate information about their true wealth. In addition, the rich tend to be reluctant to provide information, and it is difficult to record funds stashed in offshore companies. So experts work with surveys, forecasts and approximate values.