The Widening Chasm: Examining the Wealth Gap’s Alarming Growth
By Ellie Keum (she/her)
In the last four years, the five richest men in the world have gotten even richer. These men have doubled their wealth, with their combined net worth now a whopping $869 billion. Yet throughout this time period, about five billion people (60% of the world’s population) have become poorer. Oxfam’s annual inequality report, which gathers data from Forbes and Wealth X, estimates that it will take 230 years to eradicate poverty, while one of these men may become a trillionaire in only 10.
This type of condensed corporate power causes global inequality. So, how do these ultra-wealthy amass this power? These CEOs and shareholders gain money by scrimping on employees’ salaries, evading taxes, strategically investing, and utilizing other methods to retain the most money possible. This discrepancy cannot be mended unless the two ends of the wealth spectrum are balanced out by the distribution of wealth by the government to the common population. If not, the gap between rich and poor will inevitably continue to widen.
The average wages have fallen for over 800 people across 52 countries who, according to Oxfam's report, have lost a combined total of $1.5 trillion over the past few years. Meanwhile, Elon Musk, Bernard Arnault, Jeff Bezos, Larry Ellison, and Warren Buffett’s wealth soared to $245.5 billion, $191.3 billion, $167.4 billion, $145.5 billion, and $119.2 billion respectively.
To put this into perspective, the top 1% of the world holds 43% of all financial assets. In the United States, the 1% holds 32% of the country's wealth. In Europe, the ratio is 1:47, and in Asia, the gap is even wider, at 1:50.
Oxfam believes this issue requires government intervention. According to Oxfam’s interim Executive Director, Ms. Amitabh Behar, “Governments must intervene to break up monopolies, empower workers, tax these massive corporate profits and, crucially, invest in a new era of public goods and services.”
While many older politicians and businessmen do not see the value of youth perspectives, they are important, as today's teens are the next working class. Alyssa Filmer, a 16-year-old girl said, “This situation has the potential to turn into a power dynamic that is controlled by a select group of people. This pattern can continue through generations which will be detrimental to the population in the future.”
Alyssa is right. The wealth divide must be managed, if not by the self-initiative of the wealthy, then by the involvement of the government. If this gap is not rectified, global economic disparity will continue to grow, and future generations will see great consequences.
As a teenage girl myself, bound to join the greater society in the coming years, I believe that we need to be aware of these issues and advocate. Our perspectives matter, and by participating in discussions and dialogues by voicing our opinions, we can contribute to shaping a more inclusive future. By staying informed and supporting initiatives that acknowledge economic inequality, we as teens can play a role that influences positive change.
Works Cited
YouTube: Home, 9 November 2017, https://webassets.oxfamamerica.org/media/documents/Inequality_Inc._Executive_Summary.pdf?_gl=1*eifshn*_ga*OTYzODU1NzE2LjE3MDUzODE4MDU.*_ga_R58YETD6XK*MTcwNTM4MTgwNC4xLjEuMTcwNTM4NTM4MC42MC4wLjA.
Neate, Rupert. “World's five richest men double their money as poorest get poorer.” The Guardian, 15 January 2024, https://www.theguardian.com/inequality/2024/jan/15/worlds-five-richest-men-double-their-money-as-poorest-get-poorer.
