Inheritance Wealth Set to Exacerbate Global Inequality, Economists Warn
Over the next decade, more than $70 trillion (£53 trillion) of inherited wealth will be passed down across generations worldwide, with economists warning that this widening chasm between rich and poor poses a significant threat to global stability.
The United Nations Intergovernmental Panel on Climate Change is woefully inadequate in addressing the pressing issue of income inequality. A growing number of countries - over eight out of ten - are experiencing rising levels of inequality, leaving experts calling for more decisive action by governments and policymakers.
According to recent research, a majority of nations worldwide - 83% accounting for nearly 90% of the global population - have been categorized as high-income earners, with the wealth gap in these countries showing a worrying trend. Furthermore, studies have revealed that there is an alarming correlation between high levels of inequality and democratic decline.
In order to address this critical issue, South African President Cyril Ramaphosa has welcomed a report by an "extraordinary committee of independent experts" which aims to provide a blueprint for reducing inequality and putting it firmly on the international agenda as part of the upcoming G20 meetings in Johannesburg.
While some may question the need for an official monitoring group tasked with tracking wealth disparities, Ramaphosa emphasizes that addressing inequality is "our inescapable generational challenge," going so far as to describe it as a betrayal of people's dignity and a threat to democracy.
In his remarks, Ramaphosa supports the report's pragmatic recommendations aimed at reducing inequality, acknowledging that economic growth can no longer be considered inclusive if it leaves significant sections of society behind. With several major economies expected to back the proposal for an official panel monitoring income disparities, including Germany, this pressing issue is likely to receive more attention in the coming months.
The alarming trend highlighted by recent studies paints a stark picture: between 2000 and 2024, the world's wealthiest individuals captured 41% of all new wealth, while only 1% was attributed to the poorest 50%. This staggering disparity underscores the urgent need for decisive action on income inequality and highlights the pressing issue of intergenerational wealth transfer.
With compound interest exacerbating existing inequalities and perpetuating social mobility issues, the committee's warning that an estimated $70 trillion of wealth will be passed down by 2035 should not be taken lightly. As Ramaphosa succinctly puts it, addressing inequality is no longer a choice - it has become our unavoidable responsibility.
Over the next decade, more than $70 trillion (£53 trillion) of inherited wealth will be passed down across generations worldwide, with economists warning that this widening chasm between rich and poor poses a significant threat to global stability.
The United Nations Intergovernmental Panel on Climate Change is woefully inadequate in addressing the pressing issue of income inequality. A growing number of countries - over eight out of ten - are experiencing rising levels of inequality, leaving experts calling for more decisive action by governments and policymakers.
According to recent research, a majority of nations worldwide - 83% accounting for nearly 90% of the global population - have been categorized as high-income earners, with the wealth gap in these countries showing a worrying trend. Furthermore, studies have revealed that there is an alarming correlation between high levels of inequality and democratic decline.
In order to address this critical issue, South African President Cyril Ramaphosa has welcomed a report by an "extraordinary committee of independent experts" which aims to provide a blueprint for reducing inequality and putting it firmly on the international agenda as part of the upcoming G20 meetings in Johannesburg.
While some may question the need for an official monitoring group tasked with tracking wealth disparities, Ramaphosa emphasizes that addressing inequality is "our inescapable generational challenge," going so far as to describe it as a betrayal of people's dignity and a threat to democracy.
In his remarks, Ramaphosa supports the report's pragmatic recommendations aimed at reducing inequality, acknowledging that economic growth can no longer be considered inclusive if it leaves significant sections of society behind. With several major economies expected to back the proposal for an official panel monitoring income disparities, including Germany, this pressing issue is likely to receive more attention in the coming months.
The alarming trend highlighted by recent studies paints a stark picture: between 2000 and 2024, the world's wealthiest individuals captured 41% of all new wealth, while only 1% was attributed to the poorest 50%. This staggering disparity underscores the urgent need for decisive action on income inequality and highlights the pressing issue of intergenerational wealth transfer.
With compound interest exacerbating existing inequalities and perpetuating social mobility issues, the committee's warning that an estimated $70 trillion of wealth will be passed down by 2035 should not be taken lightly. As Ramaphosa succinctly puts it, addressing inequality is no longer a choice - it has become our unavoidable responsibility.
The rich are getting richer and it's just plain sad 
... $70 trillion over the next decade? That's like adding more fuel to a fire 
that's already burning out of control 
. We need to wake up and smell the coffee 
️, folks!
the rich gettin richer and the poor gettin poorer its gettin to the point where the majority of countries r just a bunch of wealthy elites leavin' the rest of us behind 
the UN climate change panel cant even touch this problem, i mean whats next? forget about savin the planet cuz we gotta worry about makin ends meet first? 
its time 4 us 2 start talkin about this, instead of just complainin about it. we need leaders w/ some real solutions, not just empty promises 
I'm telling u, inheritance wealth is like, the WORST!!! 
And now we're talkin about how it's gonna exacerbate global inequality? 
Like, what even is the point of havin' a system if somebodies just gettin' handed everything on a silver platter?! 
Not cool, fam! We need to start thinkin' about this stuff in a whole different way 
. We can't just ignore the fact that global wealth is shifting to a whole new level every decade. It's crazy to think about $70 trillion of wealth being passed down by 2035! That's like, enough money to cover all sorts of social issues 
.
. I mean, how can we call ourselves civilized when half the population is struggling while others get richer and richer? 
.
. and now we're expected to just accept that this wealth gap is going to continue to grow and destabilize our societies? no thanks 
. something needs to change, and fast 
.
. What's wrong with our economies that they can't create opportunities for everyone, not just the elite? And what's this "our inescapable generational challenge" nonsense? It sounds like an excuse to me 
. I mean, what's the point of all this wealth if it's just gonna perpetuate more poverty and social issues? 
. It's all just talk and no action. We need some real solutions here, not just empty promises from politicians 
It's crazy to think about all that money just getting passed from one rich person to another without any real consideration for those struggling to get by. We need to have a serious talk about how we're going to address this inequality and make sure everyone benefits from the economy, not just the privileged few 
. The real question is when are we gonna get a break from paying taxes on all the inherited cash?