You’re lovin’ don’t pay my bills
I’ve often heard it said that the richest 1% of the world controls NN% of the global capital, with figures ranging from 50% to 90%. A new study by United Nations University study provides real numbers for that claim:
| Population | Wealth Controlled |
|---|---|
| Top 1% | 40% |
| Top 10% | 85% |
You’re in the top 10% if you have $61,000 in capital. I’m still reading the full study but so far my main criticism is that by defining “wealth” as assets minus debts the study underestimates effects of established wealth. While I’m probably in the top 10% of the population based on assets, I have access to borrowed capital that allows my household to live closer to the top 1%. But my assets minus debts results in a net negative wealth and I’d be counted in the bottom 50% of the global population. Likewise debt for an Ivy League student is far different than debt for an immigrant laborer. In a sense, some types of debt and access to debt is deferred capital to which the majority of the global population does not have access.
The Press Release and Study Abstract
The Full Study: The World Distribution of Household Wealth
development &links posted by: dan @ 06 Dec 2006 14:14