Billionaires are constantly growing 2.5 billion dollars richer every day- The Oxfam international report 2019 - Seeker's Thoughts

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Billionaires are constantly growing 2.5 billion dollars richer every day- The Oxfam international report 2019

The world’s billionaires are constantly growing 2.5 billion dollars richer every day, while the net worth of the poorest half of the population around the globe is getting weaker.

According to the Oxfam international report 2019 the richest billionaire owns as many assets as the 3.8 billion people who make up the poorest half of the planet’s population.  Billionaires, who now number a record 2,208, have more wealth than ever before. Since the global financial crisis a decade ago, the number of billionaire has nearly doubled.


Why rich are getting is richer and poor are getting poor? What is the reason behind it?
This is somewhere derived from the Karl Marx Law of increasing poverty, a sort of criticism of capitalism-(open market system). There are several reasons for the cause; first the truth- absolute economic equality can never get happened. There will be always some poor. Both things can get balanced in between but never eliminate the fact.


Those with wealth look at money as being in abundance. They understand that money comes to them by providing products or services that people want to buy. So, they invest as much as they earn. Therefore the more they invest the probability of being richer increases.
The growth of the economy is not evenly distributed among citizens especially in labor class. Labor don’t get the enough money in a day after doing so much hard work. 
Second reason -why poor are getting poorer is being unskilled. There are thousands of job are available currently, however the high number of population is unskilled and comes among poor.

The top 26 billionaire own $1.4 trillion – as much as 3.8 billion other people.
According to the report In many countries, a decent education or quality healthcare has become a luxury only the rich can afford. Every day 10,000 people die because they lack access to affordable healthcare.


Impact on women

The impact is disproportionately held by women.
“Girls are pulled out of school fist when the money is not available to pay fees, and women clock up hours of unpaid work looking after sick relatives when system fail, and the organization estimated that if all the unpaid care work carries out by women across the globe was done by a single company, it would have an annual turnover of 10$ trillion.


India’s position in the Report

Wealth of 9 richest Indian Equivalent to bottom of country – Indian billionaire saw their fortunes swell by rupees 2,200 core a data last year, with the top 1% of the country’s richest getting richer by 39% as against just 3% increase in wealth for the bottom-half of the population.
Oxfam further said that 13.6 core Indians, who make up the poorest 10% of the country, continues to remain in debt since 2004.

India’s top 10% of the population holds 77.4 % of the total national wealth and the top 1% that holds 51.53 % of the national wealth. The bottom 60%, the majority of the population is own merely 4.8 % of the national wealth. 
Between 2018 and 2022 India is estimated to produce 70 new dollar millionaire everyday report stated.

More revelations - the problem 
The survey reveals how governments are making worse the inequalities by underfunding public services, such as healthcare and education, under taxing corporations and the wealthy, and failing to clamp down on tax and rearranging on the other—India’s Oxfam CEO revealed.

The survey also shows that women and girls are the hardest hit by rising economic inequality.
Rich Indians

According to the report India added 18 new billionaires last years raising the total number of billionaire to 119, while their wealth crossed the 400$ billion (28 lakh crore rupees) mark for the first time.

It rose from 32.5 billion in 2017 to 440.1 billion in 2018, making it the single largest annual increase since the 2008 global financial crisis.
India’s richest 1% pays just 0.5% extra tax in their wealth could raise enough money to increase the government spending on health by 50%

The combine revenue and capital expenditure of the centre and states for medical, public health, sanitation and water supply is 2,08,166  crore rupees, which is less than a country richest man Mukesh Ambani’s wealth of 2.8 lakh crores.
Billionaire wealth soars, public services are suffering from chronic underfunding or being outsources to private companies that exclude the poorest people.

Right group analysis about the report
Right group said in many countries including India, a decent education or quality healthcare has become a luxury only the rich can afford.
“Children from poor families are three times more likely to die before their first birthday than children from rich families. 
Oxfam said its calculation is based on the latest comprehensive data source available publicly, including from the credit Suisse wealth databook and the annual Forbes billionaire.

Oxfam report flawed?
In its annual released at World Economic Forum, Oxfam claims that India’s wealthiest got wealthier by 39% as against the bottom half of the population whose wealth increased by mere 3% over the last year, concluding that the divide between the rich and the poor continues to widen.

Inequality, especially the one created by crony capitalism, is a reality globally but as usual, Oxfam and media coverage of its reports, remain simplistic and hyperbolic. This is problematic because it leads to a distorted political narrative around poverty and inequality, which eventually forces policy makers to draft policies that do more harm than good to the poor.
The problem with Oxfam, to begin with, is its flawed methodology to calculate inequality. It determines global inequality on the basis of one’s net wealth assets minus liabilities and excludes income altogether. 
Ignoring purchasing power parity, standard of living, pension funds and future claims of investments creates a false and biased view of poverty and inequality.

A large section of Indian population – middle and lower income households is invested in the education and career building of their children. That may be a liability today but is also an investment for tomorrow. 
Liabilities with income are not the same as liabilities without income. A significant section of Indian population which has bought houses, cars and luxury goods on loans ties to their income, may appear to have net debt or negative wealth but they cannot be deemed poor.
By its own admission, the Oxfam reports says that India is estimated to produce 70 new dollar millionaires every day between 2018 and 2011 than in itself establishes that the circle of the richest in India is expanding even as inequality has remained an issue.

to read original Oxfam report follow- https://www.oxfam.org/en/annual-reports