The wealthy control almost all the money
Based on a research study done by the WIDER (World Institute for Development-Economics Research) at the United Nations University claims that in the 21st century, the richest 1% adults alone own about 40% of the global assets ($53 trillion), and the richest 10% adults account for 85% of the world’s wealth.
The developed parts of the world, the U.S. and Europe, control significant amounts of global wealth despite having just a small ratio of the world population. Even Australia doesn’t lag behind, with 1.123 million individuals who are millionaires and the median wealth of Australia’s adult population is the highest in the world at $219,500. Whereas, in the developing markets (where the majority of world population resides), the primary sources of wealth creation are economic growth and savings.
What’s the reason behind this wealth disparity in the world? It’s because the rich people get richer and accumulate more wealth, given their access to insane amounts of money and resources. Whereas, the rest of the population spends a large majority of their pay check on utilities, food, credit card bills, medical care and other costs of daily lives, which means there is little to invest elsewhere.
© therichest.com | This article first appeared on therichest.com on 21 October 2013.