A new study by the Boston Consulting Group discovered that while wealth inequality is quickly growing on a global scale, it is even more ridiculous in the United States, where America’s 1% are expected to control 70 percent of the nation’s private wealth by the year 2021. But they should not celebrate their mountains of gold just yet if history is any indicator.
According to a new study released in mid-June by the global management consulting firm the Boston Consulting Group (BCG), the rich Americans just keep getting richer and the poor get poorer. The study, which seeks to analyze the global wealth management industry, as well as the evolution of private wealth, uncovered some startling statistics that suggest that global financial inequality will skyrocket significantly by the year 2021.
BCG found that the already massive gap between the world’s wealthy elite – the approximately 18 million households that hold at least than $1 million in assets – and everyone else is continuing to widen at a remarkable rate. The estimated 70 million people who make up these households were found to control 45 percent of the world’s $166.5 trillion in wealth. By 2021, estimates suggest they will control more than half of the world’s wealth, despite representing less than 1 percent of the world’s current population.
However, while rising inequality is a global phenomenon, it is especially pronounced in the United States. While wealth inequality in the U.S. is by no means an unknown phenomenon, the U.S. is significantly more unequal than most other countries, with the nation’s elite currently holding 63 percent of the private wealth. The U.S. elite’s share of national wealth is also growing much faster than the global average, with millionaires and billionaires expected to control an estimated 70 percent of the nation’s wealth by 2021, reported Mint Press News.
The U.S.’ high wealth inequality is largely attributed to post-World War II government policies that have seen almost a quarter of all national income go to the wealthiest residents. Meanwhile, wages for the majority of Americans have remained stagnant for decades, in contrast to the richest Americans, their future economic outlook is incredibly bleak by comparison.
The U.S. is also home to more billionaires and millionaires than anywhere else in the world, which partly explains how U.S. policy has come to favor them over the years. According to Bloomberg, two out of five millionaires and billionaires live in the United States – and their ranks are growing.
While the world’s most prominent wealth hoarders may be initially pleased by the results of BCG’s recent study, but they would be concerned if they knew history. The Guardian reported that history proves societies with drastic wealth inequality are much more unstable and more likely to experience drastic economic failure or outright societal collapse.
A 2014 study conducted by the National Socio-Environmental Synthesis Center noted that over-consumption and wealth inequality have occurred in the collapse of every civilization over the last 5,000 years. That same study also warned that rising inequality could easily lead to an unsustainable use of resources and the “irreversible collapse” of global industrial civilization, reported MPN.
The study will make most of the world’s millionaires and billionaires elated, especially in the United States, but in reality, they should be gravely concerned that their hoarding of wealth could have drastic consequences for everyone.
(Article By Jeremiah Jones)