Billionaire wealth surges three times faster by $2 trillion in 2024: Oxfam

Highlights:

• Oxfam predicts there will be at least five trillionaires a decade from now
• 204 new billionaires were minted in 2024, nearly four every week
• 60% of billionaire wealth is now derived from inheritance, monopoly power or crony connections, as Oxfam argues that "extreme billionaire wealth is largely unmerited" 
• Richest 1% in the Global North extracted $30 million an hour from the Global South through the financial system in 2023
• Oxfam urges governments to tax the richest to reduce inequality, end extreme wealth, and dismantle the new aristocracy

Billionaire wealth grew by $2 trillion in 2024 alone, equivalent to roughly $5.7 billion a day, at a rate three times faster than the year before, a report published by development organisation Oxfam said.

Published ahead of the World Economic Forum (WEF) in Davos, the report titled "Takers Not Makers" said an average of nearly four new billionaires were minted every week in 2024.

Meanwhile, the number of people living in poverty has barely changed since 1990, according to World Bank data.

In 2024, the number of billionaires rose to 2,769, up from 2,565 in 2023. Their combined wealth surged from $13 trillion to $15 trillion in just 12 months.

This is the second largest annual increase in billionaire wealth since records began. The wealth of the world's ten richest men grew on average by almost $100 million a day — even if they lost 99% of their wealth overnight, they would remain billionaires.

Last year, Oxfam predicted the emergence of the first trillionaire within a decade. However, with billionaire wealth accelerating at a faster pace this projection has expanded dramatically — at current rates the world is now on track to see at least five trillionaires within that timeframe.

This ever-growing concentration of wealth is enabled by a monopolistic concentration of power, with billionaires increasingly exerting influence over industries and public opinion.

"The capture of our global economy by a privileged few has reached heights once considered unimaginable. The failure to stop billionaires is now spawning soon-to-be trillionaires. Not only has the rate of billionaire wealth accumulation accelerated —by three times— but so too has their power," said Oxfam International Executive Director Amitabh Behar.

"The crown jewel of this oligarchy is a billionaire president, backed and bought by the world's richest man Elon Musk, running the world's largest economy. We present this report as a stark wake up-call that ordinary people the world over are being crushed by the enormous wealth of a tiny few," said Behar.

The report also shines a light on how, contrary to popular perception, billionaire wealth is largely unearned —60% of billionaire wealth now comes from inheritance, monopoly power or crony connections. Unmerited wealth and colonialism —understood as not only a history of brutal wealth extraction but also a powerful force behind today's extreme levels of inequality— stand as two major drivers of billionaire wealth accumulation.

Oxfam's calculates that 36% of billionaire wealth is now inherited. Research by Forbes found that every billionaire under 30 has inherited their wealth, while UBS estimates that over 1,000 of today's billionaires will pass on more than $5.2 trillion to their heirs over the next two to three decades.

Many of the super-rich, particularly in Europe, owe part of their wealth to historical colonialism and the exploitation of poorer countries. For example, the fortune of billionaire Vincent Bolloré, who has put his sprawling media 'empire' at the service of France's nationalist right, was built partly from colonial activities in Africa.

Vast sums of money still flow from the Global South to countries in the Global North and their richest citizens, in what Oxfam's report describes as modern-day colonialism.  

• The richest 1% in Global North countries like the US, UK and France extracted $30 million an hour from the Global South through the financial system in 2023
• Global North countries control 69% of global wealth, 77% of billionaire wealth and are home to 68% of billionaires, despite making up just 21% of the global population
• The average Belgian has about 180 times more voting power in the largest arm of the World Bank than the average Ethiopian.

Low- and middle-income countries spend on average nearly half of their national budgets on debt repayments, often to rich creditors in New York and London. This far outstrips their combined investment in education and healthcare. Between 1970 and 2023, Global South governments paid $3.3 trillion in interest to Northern creditors.

The history of empire, racism and exploitation has left a lasting legacy of inequality. Today, the average life expectancy of Africans is still more than 15 years shorter than that of Europeans. Research shows that wages in the Global South are 87 to 95% lower than wages in the Global North for work of equal skill. Despite contributing 90% of the labor that drives the global economy, workers in low- and middle-income countries receive only 21% of global income.

Globally, women are more often found in the most vulnerable forms of informal employment, including domestic work, than their male counterparts. Migrant workers in rich countries earn, on average, about 13% less than nationals, with the wage gap rising to 21% for women migrants.

"The ultra-rich like to tell us that getting rich takes skill, grit and hard work. But the truth is most wealth is taken, not made. So many of the so-called 'self-made' are actually heirs to vast fortunes, handed down through generations of unearned privilege. Untaxed billions of dollars in inheritance is an affront to fairness, perpetuating a new aristocracy where wealth and power stays locked in the hands of a few," said Behar.

"Meanwhile, the money desperately needed in every country to invest in teachers, buy medicines and create good jobs is being siphoned off to the bank accounts of the super-rich. This is not just bad for the economy —it's bad for humanity."

Oxfam called on governments to act rapidly to reduce inequality and end extreme wealth:

• Radically reduce inequality: Governments need to commit to ensuring that, both globally and at a national level, the incomes of the top 10% are no higher than the bottom 40%. According to World Bank data, reducing inequality could end poverty three times faster.  Governments must also tackle and end the racism, sexism and division that underpin ongoing economic exploitation.
• Tax the richest to end extreme wealth: Global tax policy should fall under a new UN tax convention, ensuring the richest people and corporations pay their fair share. Tax havens must be abolished. Oxfam's analysis shows that half of the world's billionaires live in countries with no inheritance tax for direct descendants. Inheritance needs to be taxed to dismantle the new aristocracy.  
• End the flow of wealth from South to North: Cancel debts and end the dominance of rich countries and corporations over financial markets and trade rules. This means breaking up monopolies, democratising patent rules, and regulating corporations to ensure they pay living wages and cap CEO pay. Restructure voting powers in the World Bank, IMF and UN Security Council to guarantee fair representation of Global South countries. Former colonial powers must also confront the lasting harm caused by their colonial rule, offer formal apologies, and provide reparations to affected communities.