These 6 Men Have as Much Wealth as Half the World's Population
By Paul Buchheit
Yes, inequality is getting worse every year. In early 2016 Oxfam reported that just 62 individuals had the same wealth as the bottom half of humanity. About a year later Oxfam reported that just eight men had the same wealth as the world's bottom half. Based on the same methodology and data sources used by Oxfam, that number is now down to six.
8 Men Account for Half the World’s Wealth https://t.co/m4xk7W9Ihr @BusinessGreen @GreenCollarGuy— EcoWatch (@EcoWatch)1484614821.0
How to account for the dramatic increase in the most flagrant and perverse of extreme inequalities? Two well-documented reasons:
1. The poorest half (and more) of the world has continued to lose wealth; and
2. The very richest individuals—especially the top thousand or so—continue to add billions of dollars to their massive fortunes.
Inequality deniers and apologists say the Oxfam methodology is flawed, but they're missing the big picture. Whether it's six individuals or 62 or 1,000 doesn't really matter. The data from the Credit Suisse Global Wealth Databook (GWD) and the Forbes Billionaire List provide the best available tools to make it clear that inequality is extreme and pathological and getting worse every year.
How It's Gone from 62 to Six in One Year
As of Feb. 17, the world's six richest individuals (all men) had $412 billion. Tables 2-4 and 3-4 of the 2016 GWD reveal that the poorest five deciles of the world population own just .16 percent of the $256 trillion in global wealth or $410 billion. That latter figure is based on mid-2016 data, but since then the status of the bottom 50 percent has not improved and has in fact likely worsened, as both global debt and global inequality have increased.
Just a year ago, on March 1, 2016, the world's six richest men had $343 billion. They're the same men today, although slightly rearranged as they play "king of the hill": Bill Gates, Warren Buffett, Jeff Bezos, Amancio Ortega, Mark Zuckerberg, Carlos Slim Helu (with Larry Ellison jockeying for position). The wealth of these six men increased by $69 billion in just one year.
Just a year ago, according to the 2015 GWD, the poorest five deciles of the world population owned much more than today, close to $1.5 trillion. What happened? It's very clear: the world's richest 10 percent (mostly the richest 1 percent) gained nearly $4 trillion while every other segment of the global population lost wealth.
That's worth a second look. The world's total wealth is about $256 trillion and in just one year the richest 10 percent drained nearly $4 trillion away from the rest of civilization.
It's Not Just the Bottom Half: A 500-Seat Auditorium Could Hold As Much Wealth as 70 percent of the World's Population
According to the Forbes Billionaire List, the world's richest 500 individuals have $4.73 trillion in wealth. Tables 2-4 and 3-4 of the GWD reveal that the poorest seven deciles of the world population own just 1.86 percent of the $256 trillion in global wealth or $4.76 trillion. That's more than two-thirds of all the people on Earth. That means 5,000,000,000 people—five billion people—have, on average and after debt is figured in, about a thousand dollars each in home and property and savings.
In the U.S., the Forbes 400 Own as Much as 3/5 of the American People
The bottom 60 percent of Americans, according to Table 6-5 in the GWD, own three percent of the nation's $85 trillion in total wealth or $2.55 trillion. The Forbes 400 owned $2.4 trillion in October 2016 and that's been steadily increasing.
So as apologists like the National Review refer to "a growing upper-middle class" of people earning more than $100,000 a year, they're inadvertently offering an explanation for the demise of the middle class: Some are moving up, way up; many others are dropping to the lower-middle-class or below. The once sizable and stable middle of America is splitting into two.
The Deniers Are Lurking
Jacoby's column includes some stunning assertions. He said, "Just as capitalism made it possible for Gates, Zuckerberg and the others to reach the highest rung on the economic ladder, it is making it possible for billions of men and women to climb up from the lowest rung. Oxfam's billionaires are richer than they used to be. So is almost everyone else." And he quotes writer Johan Norberg: "Poverty as we know it is disappearing from our planet."
Billions moving up? Almost everyone getting richer? Poverty disappearing?
While we keep hearing about the world "climbing out of poverty," much of the alleged improvement is due to rapid economic growth in China and creative math on the part of the UN. And yes, many Americans have negative wealth because of debt. A human being doesn't have to live in a third-world slum to be impoverished.
Yet as inequality ravages the American and world economies, denial grows right along with it. Cato's Michael Tanner suggests that "even if inequality were growing as fast as critics claim, it would not necessarily be a problem." George Will, of course, agrees. But like the other deniers, they all protest too much as they try to explain away reality.
Paul Buchheit is a college teacher, an active member of U.S. Uncut Chicago. His latest book is, Disposable Americans: Extreme Capitalism and the Case for a Guaranteed Income. He is also founder and developer of social justice and educational websites (UsAgainstGreed.org, PayUpNow.org, RappingHistory.org) and the editor and main author of American Wars: Illusions and Realities (Clarity Press). He can be reached at paul [at] UsAgainstGreed [dot] org. Reposted with permission from our media associate Common Dreams.
EcoWatch Daily Newsletter
By Alexander Freund
Lebanese Prime Minister Hassan Diab says he believes Tuesday's explosion in Beirut could have been caused by large quantities of ammonium nitrate stored in the port.
What Is Ammonium Nitrate?<p>Ammonium nitrate is a white crystalline salt that can be fairly cheaply produced from ammonia and nitric acid. It is soluble and often used as fertilizer, as nitrogen is needed for healthy plant development.</p><p>Ammonium nitrate in its pure form is not dangerous. It is, however, heat sensitive. At 32.2 degrees Celsius (89.96 degrees Fahrenheit), ammonium nitrate changes its atomic structure, which in turn changes its chemical properties.</p><p>When large quantities of ammonium nitrate are stored in one place, heat is generated. If the amount is sufficiently vast, it can cause the chemical to ignite. Once a temperature of 170 C is reached, ammonium nitrate starts breaking down, emitting nitrous oxide, better known as laughing gas. Any sudden ignition causes ammonium nitrate to decompose directly into water, nitrogen and oxygen, which explains the enormous explosive power of the salt.</p>
Deadly Disasters<p>As ammonium nitrate is a highly explosive chemical, many countries strictly regulate its use. Over the past 100 years, there have been several disasters involving the chemical.</p><p>In 1921, for example, a massive blast occurred at a BASF chemical plant in Ludwigshafen in the German state of Rhineland-Palatinate. About 400 metric tons of a mixture of ammonium sulfate and ammonium nitrate exploded, killing 559 people and injuring 1,977. The plant was largely destroyed in the blast, which could be heard as far away as Munich, some 300 kilometers (186 miles) distant.</p><p>In 2015, explosions caused by ammonium nitrate ripped through the <a href="https://www.dw.com/en/china-convicts-dozens-for-last-years-giant-explosions-in-tianjin/a-36324321" target="_blank">Chinese port city of Tianjin</a>. Eight hundred metric tons of the chemical were said to have been stored along with other substances in a warehouse for hazardous materials. The blasts killed 173 people and destroyed an entire city district.</p><p>Two years earlier, in 2013, an ammonium nitrate explosion occurred at the West Fertilizer Company site in Texas, killing 14 people. And in 2001, 31 people died in Toulouse, France, in an explosion caused by the chemical.</p>
Terrorist Favorite<p>In Germany, the purchase and use of ammonium nitrate is regulated by the explosives act. This is because the cheap, highly explosive and relatively easily obtainable material has in the past been used by terrorists to carry out attacks.</p><p>For example, in 1995, U.S. conspiracy theorist and gun enthusiast Timothy McVeigh used a mixture of ammonium nitrate and other substances to bomb the Alfred P. Murrah Federal Building in Oklahoma City. Norwegian far-right extremist Anders Behring Breivik also used ammonium nitrate in a car bomb attack in Oslo in 2011.</p>
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The Australian government has announced a A$190 million (US$130 million) investment in the nation's first Recycling Modernization Fund, with the aim of transforming the country's waste and recycling industry. The hope is that as many as 10,000 jobs can be created in what is being called a "once in a generation" opportunity to remodel the way Australia deals with its waste.
Waste Mountain<p>The need for a dramatic increase in Australia's recycling capacity pre-dates the COVID-19 pandemic. <a href="https://www.abc.net.au/news/2019-12-27/where-does-all-australias-waste-go/11755424" target="_blank">Australians create approximately 67 million tons of waste a year</a>, and like in many wealthy countries, much of that was sent overseas. That all changed when China announced it was <a href="https://www.weforum.org/agenda/2017/10/china-has-banned-foreign-waste-so-whats-the-future-of-world-recycling" target="_blank">banning the import of a huge range of foreign waste</a> and recyclables. Soon <a href="https://www.weforum.org/agenda/2019/05/malaysia-flooded-with-plastic-waste-to-send-back-some-scrap-to-source" target="_blank">other countries followed suit</a>, and Australia was forced to look for alternative solutions.</p>
Biggest exporters of plastic. Statista
Waste Export Ban<p>Australia has adopted a strategy of taking responsibility for its own waste. Starting in January 2021, it is phasing in <a href="http://www.environment.gov.au/protection/waste-resource-recovery/waste-export-ban" target="_blank">bans on the export of different forms of waste</a>. By mid 2024, Australia's home-grown recycling industry will have to deal with an extra 650,000 tons of waste plastic, paper, glass and tires.</p><p>"As we cease shipping our waste overseas, the waste and recycling transformation will reshape our domestic waste industry, driving job creation and putting valuable materials back into the economy," federal environment minister Sussan Ley said in a <a href="https://uk.reuters.com/article/us-australia-waste/australia-to-set-up-132-million-fund-to-boost-recycling-following-export-curbs-idUKKBN247060" target="_blank">statement to Reuters</a>.</p>
Timeline for Australia's waste export ban. Australian Government
Trash Into Treasure<p>The benefits to the environment of boosting recycling rates are well known – less landfill, less plastic in our ocean, reduced need for virgin materials, and lower carbon emissions. The Recycling Modernization Fund initiative aims to divert more than 10 million tons of waste from landfill, part of an <a href="http://www.environment.gov.au/protection/waste-resource-recovery/publications/national-waste-policy-action-plan" target="_blank">overall strategy to reduce the total waste generated per person by 10%</a>, and push <a href="https://www.environment.gov.au/system/files/resources/7381c1de-31d0-429b-912c-91a6dbc83af7/files/national-waste-report-2018.pdf" target="_blank">Australia's total resource recovery rate from 58% in 2017</a> to 80% by 2030.</p><p>But like many countries, Australia is focusing on the economic benefits of better waste management as well.</p><p>"This will mean Australia converts more waste into higher valued resources ready for reuse locally by manufacturers and brands in their packaging and products," Rose Read, CEO of the National Waste and Recycling Industry Council, <a href="https://uk.reuters.com/article/us-australia-waste/australia-to-set-up-132-million-fund-to-boost-recycling-following-export-curbs-idUKKBN247060" target="_blank">told Reuters</a>.</p>
Green Jobs<p>The great potential of the circular economy to create green jobs is being recognized across the world.</p><p>In the UK, the Waste and Resources Action Program has launched a <a href="https://wrap.org.uk/buildbackbetter" target="_blank">six-point plan which it claims could add $90 billion to the economy, and create 500,000 new jobs</a>. Investment in the circular economy forms a significant part of the <a href="https://www.nytimes.com/2020/07/14/us/politics/biden-climate-plan.html" target="_blank">$2 trillion climate plan that Democratic candidate Joe Biden</a> is taking into November's US presidential election. And the <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_20_940" target="_blank">European Union has put its Green New Deal at the heart of its plans for recovery</a> from the economic shock of COVID-19.</p><p>The World Economic Forum's <a href="http://www3.weforum.org/docs/WEF_The_Future_Of_Nature_And_Business_2020.pdf" target="_blank">Future of Nature and Business</a> report identifies 15 systemic transitions with annual business opportunities worth $10 billion a year that could create 395 million jobs by 2030.</p><p>As is the case with Australia's Recycling Modernization Fund, a combination of private enterprise and government investment can offer ways to get people back to work by building a more environmentally sustainable economy.</p>
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