What if you were as rich because the entire town of London? The city’s GDP is roughly $500 billion. But if you combine their wealth, the eight richest individuals the entire world are worth with that much. They control more income compared to the bottom 1 / 2 of the world’s population. There were about 18 million households on the wolrd wealth with private wealth of at least $1 million in 2016.
Those millionaires control around 45% of total private global wealth. Let’s break made that first move. Households worth between $1 million and $20 million accounted for 28% of the world’s wealth. Those worth $20 million to $100 million owned 9%. And ultra-high net worth households above $100 million controlled 8% of global wealth.
The proportion of overall wealth held by millionaires is increasing fast. Millionaire households are anticipated to have over half of total global private wealth by 2021. Their share was one-third 10 years ago.
Why? One of the reasons is gains within the stock market, the place where a lot of the wealthy investors place their money. America houses the largest variety of millionaires, with around Seven million households owning greater than $1 million in investable assets, China ranks second, Japan third, The U.K. comes in at fourth, and Canada ranks fifth.
When it comes to the world’s wealth, well, a variety of it runs inherited. It’s estimated that one-third of billionaires inherited their wealth. Investment firm UBS claims that within the next 2 decades, lower than 500 individuals will give over greater than $2 trillion to their heirs. That’s a quantity in regards to the size the GDP of India, a country with 1.3 billion people.
Here’s the one thing, you don’t must be a billionaire or even a millionaire to be among the world’s wealthy. That need considering within the top 1% in the U.K. an individual earner with a spouse and 2 kids, under the age of 14, will have to make around $430,000 before tax. But there’s a vital distinction between income and wealth.
Earnings are everything you earn, like your monthly paycheck. Wealth will be the total measure of your financial assets, like your home, your automobile, or those government bonds you got out of your great-grandmother. By some measures, wealth is much more unequally distributed than income. Recent data suggests the insightful 1 / 2 of adults on earth is no greater than $2,222.
And a lot of people in this group have negative wealth, meaning debts they have accrued exceed the price of their assets. There’s lots of disagreement over evening out the world’s wealth concentration. But even some of the richest individuals the world, like Bill Gates or Warren Buffett, agree that addressing solutions to wealth inequality can be worth, well, a lot.