According to Credit Suisse’s latest Global Wealth Report, released Tuesday, the richest 1% of people own nearly half the world’s wealth. The report explains that world wealth has reached a record $263 trillion in mid-2014, $20.1 trillion more, and an 8.3 percent increase, over mid-2013.
Although there is a plethora of wealth, however, this wealth is concentrated in very few hands. As a result, the report warned that the “abnormally high wealth income ratios” may spark a recession. High income disparity is likely to cause economic friction, as the rich continue to get richer. There are no signs that the poor will be getting a share of this wealth. It seems that the rich will continue to get richer, the poor will continue to get poorer, and the income gap will grow. This could lead to a global recession.
The report went on to say that the United States, dubbed as the ‘Land of Fortunes,’ currently leads the money trail with 34.7 percent ($91 trillion) of global wealth. The U.S. also boasts the highest average wealth. Europe comes in a close second, followed by China, India, and other emerging markets.
Source: BBC News
