Over 15 trillion dollars in wealth: why the power of billionaires is becoming increasingly concerning for the world

Others argue that billionaires are often in a better position to benefit the poor and solve collective problems than governments.

The collective wealth of the world’s billionaires increased by 2 trillion dollars just in 2024, reaching a total of over 15 trillion dollars, according to a report published on Monday by the poverty-fighting charity Oxfam International.

The rapid accumulation of wealth by the richest individuals shows that the world may see the emergence of the first five trillionaires within the next decade, one more than previously predicted. Oxfam and its supporters warn that such concentrations of wealth are unfair and distort political power.

Others argue that billionaires are often in a better position to benefit the poor and address collective issues than governments. This issue resurfaced in part due to the tech billionaires who attended President Donald Trump’s inauguration on Monday.

While the majority of billionaires in the world have wealth between 1-5 billion dollars, according to a report from November 2024 by the specialized company Altrata, the accumulation of wealth is becoming more concentrated at the top of the list. According to Bloomberg’s Billionaire Index, the 10 richest people in the world share a combined wealth of just over 2 trillion dollars.

Trump supporter Elon Musk is the richest person in the world, worth about 449 billion dollars as of Monday. The other nine on Bloomberg’s list are American citizens, most of whom come from the tech sector. Aside from the luxury goods giant and LVMH head Bernard Arnault, the others saw their wealth increase in the last 12 months.

According to Omar Ocampo, a researcher at the Institute for Political Studies, this reflects the ongoing boom in the technology sector. “The expectations surrounding Artificial Intelligence and the billions of dollars invested in its development have made tech companies achieve impressive profits in 2024. As a result, the wealth of tech billionaires has reached unprecedented new levels,” he emphasizes.

Meanwhile, Oxfam cited a recent World Bank report which revealed that the number of people living under the poverty line of 6.85 dollars per person per day “has barely changed” since 1990, due to population growth.

Most of these people are found in the Global South—regions characterized by lower levels of economic development and weaker political influence—where the exploitation of extractive industries and cheaper labor from richer nations has created what Oxfam refers to as “modern-day colonialism.”

Oxfam warned that the growing wealth of billionaires around the world has been accompanied by an increasing level of their political power. However, others have argued that the massive accumulation of wealth is not bad in itself, as it is the result of hard work and ingenuity, and that billionaires may be in a better position to help the disadvantaged.

In their 2022 essay “Wealth Without Limits: In Defense of Billionaires,” scholars Jessica Flanigan and Chris Freiman argued that billionaires often use their extreme wealth for philanthropic campaigns, and that their money is often more effective in their hands than it would be in the hands of the government, should it be subjected to higher taxes.

Economist Michael Strain wrote in January 2024 that “billionaire innovators create great value for society.” He cited a 2004 study by Nobel laureate economist William Nordhaus, which found that the vast majority of the “social benefits from technological advances” go to consumers, not those who lead these technologies.

Meanwhile, Oxfam’s Executive Director Amitabh Behar says: “The global economy has been captured by a small group of privileged people, reaching heights that were once considered unimaginable. Failure to limit billionaires will soon lead to the emergence of trillionaires. Not only has the accumulation of billionaires’ wealth tripled, but so has their power.”

“The greatest achievement of this oligarchy is a billionaire president, supported and bought by the richest person in the world, Elon Musk, who runs the world’s largest economy,” he added.

In his farewell speech as president, Biden said: “Today in the US, an oligarchy of wealth, power, and extreme influence is taking shape, which threatens our democracy, our fundamental rights and freedoms, and is a direct blow to anyone else trying to move forward.”

“We must reform the tax code, not by significantly lowering taxes for billionaires, but by forcing them to pay their fair share.” Jessica Flanigan and Chris Freiman write: “Taxing non-philanthropic billionaires at a high rate is counterproductive… Because their wealth provides more social goods when invested in the market than when taxed and redistributed.”

Economist Michael Strain wrote: “For example, Amazon has lowered the price of many consumer goods, creating more free time for millions of Americans by eliminating the need to go to brick-and-mortar stores… While its founder Jeff Bezos has received only a small portion of those social benefits.”

Oxfam called on global governments to “act swiftly to reduce inequality and end extreme wealth.” Among its suggestions are the elimination of tax havens, an increase in inheritance taxes to “dismantle the new aristocracy,” and ensuring that the richest individuals and corporations in the world “truly pay their fair share.”

Oxfam’s report coincides with the start of the World Economic Forum (WEF) in Davos, Switzerland, an annual meeting where business leaders, politicians, and academics discuss global economic challenges. President Donald Trump is expected to give an online speech on Thursday/ (“Newsweek”)

CREATED by:

“KORÇA BOOM”