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"Extreme poverty is increasing", Oxfam study: The rich got even richer from the pandemic and the energy crisis

2023-01-17 09:07:11Kosova&Bota SHKRUAR NGA REDAKSIA VOX

"Extreme poverty is increasing", Oxfam study: The rich got even richer

For the first time in 25 years, according to a study, extreme wealth and extreme poverty are simultaneously increasing.

The world's richest have cashed in about two-thirds of the increase in global wealth, corporations and the super-rich are the winners from the corona pandemic and the energy crisis, finds the aid organization Oxfam.

The richest percentage of the world's population has accounted for about two-thirds of the increase in global wealth, says the report "Survival of the Richest".

This report was published exactly on the day (16.01) of the beginning of the World Economic Forum in Davos, Switzerland.

In Germany, the trend is even more evident, according to the organization critical of capitalism. 81 percent of the income from the increase in overall wealth between 2020 and 2021 in Germany, according to the report, went to the richest percentage of the population.

The total wealth of all billionaires worldwide as of 2020 has grown by an average of about US$2.7 billion every day.

1.7 billion people in poverty
According to Oxfam, at least 1.7 billion workers currently live in countries where inflation is higher than wage growth.

One in ten people on the planet is hungry, about 828 million people. 60 percent of the world's population suffering from hunger are women and girls.

German Development Minister: Back years later

Even the German Minister of Development, Svenja Schulze, considers this development to be dangerous. It is a sign of alarm, that the gap between the poor and the rich is getting deeper and deeper, she said in Berlin. "The pandemic, conflicts and especially the Russian attack have set us back years in poverty, hunger, health or education - while the rich have gotten even richer." The social democratic politician drew attention: "If we around the world do not avoid inequality, we will not be able to cope with crises." According to her, it is important to create social security networks to support people in case they lose their income, home, or job, as well as when they become parents.

Oxfam calls for tax hikes

Oxfam seeks as a way out of the crisis the increase of taxes for the rich. In some countries, the poorest face higher taxes than billionaires.

According to Oxfam worldwide only four percent of taxes are income from wealth tax. This organization expects the German federal government to specifically apply a tax on unusual profits at a high level during the time of the energy crisis.

Such so-called super profits should be taxed at least 50 percent. In addition, the property tax should be reinstated. A lump sum tax is also needed on large assets. This money should be invested in education, health and social security systems./ DW


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