Mark John

LONDON, (Reuters) – The pandemic saw a huge increase in the household wealth of billionaires. Millionaires have also emerged from COVID-19, a study revealed on Tuesday.

A network of social scientists produced the World Inequality Report. It estimated that global billionaires collectively owned 3.5% this year, an increase from 2% in the early 2020 pandemic.

Lucas Chancel led the analysis. Lucas Chancel noted that COVID has worsened inequality between wealthy people and those in the middle of society. This was due to rich nations using massive fiscal support in order to reduce the rises in poverty in other countries.

It was built on diverse research from specialists and included a preface written by Esther Duflo (U.S.-based economics) who were among the three Nobel laureates for poverty work in 2019.

They wrote that wealth was a significant source of future economic gains and, increasingly, power and influence. This presages more increases in inequality. (For a graphic on share of wealth owned by richest 10%, middle 40% and poorest 50%, see https://tmsnrt.rs/3y0tzHi)

This confirms a number of other studies, rich lists, and evidence that points to increased health, social and gender inequalities in the period following the pandemic.

Forbes released its world’s richest list for 2015, with record 2,755 billionaires. They have a total worth $13.1 trillion in addition to $8 trillion.

According to the new report, a larger group of 520,000 people who are the richest 0.01% together has seen their global share increase from 10% last year to 11%.

According to it, being in the top 0.01% meant that your household had a minimum of 16.7 million euros ($19million), adjusted for purchasing power parity across currencies. (For a graphic on the share of household wealth, see https://tmsnrt.rs/3doc0rn)

Analysts believe that some of the super-rich benefit from the online shift of large parts of the world’s economy in lockdowns. Others simply profit from rising asset values as the financial markets wager on the shape and speed of global recovery.

Also, while poverty rose in countries with poorer welfare coverages, substantial government support from the United States of America and Europe helped to reduce at least some of its impact on low-income earners.

Chancel stated, “This is a clear indication of the importance social states for the fight against poverty.”

Separately, it welcomed this year’s deal https://www.reuters.com/business/finance/what-is-global-minimum-tax-deal-what-will-it-mean-2021-10-08 on a global minimum corporation tax rate of 15% as a possible milestone in efforts to halt a “race to the bottom” which since the mid-1980s has led to a halving of average company tax rates to around 24%.

However it said the agreement was flawed because the 15% floor was lower than what average-earners pay in high-income countries and because it offered carve-outs https://www.reuters.com/business/global-tax-deal-leaves-billion-dollar-loopholes-reuters-analysis-finds-2021-12-03 and opaque arbitration possibilities to many of the companies affected.