{"id":178050,"date":"2021-02-01T12:00:58","date_gmt":"2021-02-01T12:00:58","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=178050"},"modified":"2021-01-27T04:25:44","modified_gmt":"2021-01-27T04:25:44","slug":"mega-rich-recoup-covid-losses-in-record-time-yet-billions-will-live-in-poverty-for-at-least-a-decade","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2021\/02\/mega-rich-recoup-covid-losses-in-record-time-yet-billions-will-live-in-poverty-for-at-least-a-decade\/","title":{"rendered":"Mega-Rich Recoup COVID-Losses in Record-Time yet Billions Will Live in Poverty for At Least a Decade"},"content":{"rendered":"<p><a href=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2021\/02\/0xfam-logo.jpeg\" ><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-178053\" src=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2021\/02\/0xfam-logo.jpeg\" alt=\"\" width=\"355\" height=\"142\" srcset=\"https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2021\/02\/0xfam-logo.jpeg 355w, https:\/\/www.transcend.org\/tms\/wp-content\/uploads\/2021\/02\/0xfam-logo-300x120.jpeg 300w\" sizes=\"auto, (max-width: 355px) 100vw, 355px\" \/><\/a><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\"><em>25 Jan 2021 &#8211;<\/em>The 1,000 richest people on the planet recouped their COVID-19 losses within just nine months, but it could take more than a decade for the world\u2019s poorest to recover from the economic impacts of the pandemic, reveals a new Oxfam report today. \u2018<a target=\"_blank\" href=\"https:\/\/oxf.am\/39WCSwj\" >The Inequality Virus<\/a>\u2019 is being published on the opening day of the World Economic Forum\u2019s \u2018<a target=\"_blank\" href=\"https:\/\/www.weforum.org\/events\/the-davos-agenda-2021\" >Davos Agenda<\/a>\u2019.<\/span><\/p>\n<div class=\"paragraph paragraph--type--text paragraph--view-mode--default\">\n<div class=\"paragraph paragraph--type--text paragraph--view-mode--default max-width-text content-section-text copy-body\">\n<div>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">The report shows that COVID-19 has the potential to increase economic inequality in almost every country at once, the first time this has happened since records began over a century ago. Rising inequality means it could take at least 14 times longer for the number of people living in poverty to return to pre-pandemic levels than it took for the fortunes of the top 1,000, mostly White male, billionaires to bounce back.\u00a0 <\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">A new global survey of 295 economists from 79 countries, commissioned by Oxfam, reveals that 87 percent of respondents, including Jeffrey Sachs, Jayati Ghosh and Gabriel Zucman, expect an \u2018increase\u2019 or a \u2018major increase\u2019 in income inequality in their country as a result of the pandemic.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Oxfam\u2019s report shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the worst recession since the Great Depression while billions of people are struggling to make ends meet. It reveals how the pandemic is deepening long-standing economic, racial and gender divides.<\/span><\/p>\n<ul>\n<li><span lang=\"EN-CA\" xml:lang=\"EN-CA\">The recession is over for the richest. The world\u2019s ten richest men have seen their combined wealth increase by half a trillion dollars since the pandemic began \u2014more than enough to pay for a COVID-19 vaccine for everyone and to ensure no one is pushed into poverty by the pandemic. At the same time, the pandemic has ushered in the worst job crisis in over 90 years with hundreds of millions of people now underemployed or out of work. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Women are hardest hit, yet again. Globally, women are overrepresented in the low-paid precarious professions that have been hardest hit by the pandemic. If women were represented at the same rate as men in these sectors, 112 million women would no longer be at high risk of losing their incomes or jobs. Women also make up roughly 70 percent of the global health and social care workforce \u2212 essential but often poorly paid jobs that put them at greater risk from COVID-19. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Inequality is costing lives. Afro-descendants in Brazil are 40 percent more likely to die of COVID-19 than White people, while nearly 22,000 Black and Hispanic people in the United States would still be alive if they experienced the same COVID-19 mortality rates as their White counterparts. Infection and mortality rates are higher in poorer areas of countries such as France, India, and Spain while England\u2019s poorest regions experience mortality rates double that of the richest areas. <\/span><\/li>\n<\/ul>\n<ul>\n<li><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Fairer economies are the key to a rapid economic recovery from COVID-19. A temporary tax on excess profits made by the 32 global corporations that have gained the most during the pandemic could have raised $104 billion in 2020. This is enough to provide unemployment benefits for all workers and financial support for all children and elderly people in low- and middle-income countries. <\/span><\/li>\n<\/ul>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Gabriela Bucher, Executive Director of Oxfam International, said:<\/span><\/p>\n<blockquote><p><em><span lang=\"EN-CA\" xml:lang=\"EN-CA\">&#8220;We stand to witness the greatest rise in inequality since records began. The deep divide between the rich and poor is proving as deadly as the virus.\u201d<\/span><\/em><\/p>\n<p><em><span lang=\"EN-CA\" xml:lang=\"EN-CA\">\u201cRigged economies are funnelling wealth to a rich elite who are riding out the pandemic in luxury, while those on the frontline of the pandemic \u2014shop assistants, healthcare workers, and market vendors\u2014 are struggling to pay the bills and put food on the table. <\/span><\/em><\/p>\n<p><em><span lang=\"EN-CA\" xml:lang=\"EN-CA\">\u201cWomen and marginalized racial and ethnic groups are bearing the brunt of this crisis. They are more likely to be pushed into poverty, more likely to go hungry, and more likely to be excluded from healthcare.\u201d<\/span><\/em><\/p><\/blockquote>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Billionaires fortunes rebounded as stock markets recovered despite continued recession in the real economy. Their total wealth hit $11.95 trillion in December 2020, equivalent to G20 governments\u2019 total COVID-19 recovery spending. The road to recovery will be much longer for people who were already struggling pre-COVID-19. When the virus struck over half of workers in poor countries were living in poverty, and three-quarters of workers globally had no access to social protections like sick pay or unemployment benefits. <\/span><\/p>\n<blockquote><p><span lang=\"EN-CA\" xml:lang=\"EN-CA\"><em>\u201cExtreme inequality is not inevitable, but a policy choice. Governments around the world must seize this opportunity to build more equal, more inclusive economies that end poverty and protect the planet,\u201d<\/em> added Bucher.<\/span><\/p>\n<p><em><span lang=\"EN-CA\" xml:lang=\"EN-CA\">\u201cThe fight against inequality must be at the heart of economic rescue and recovery efforts. Governments must ensure everyone has access to a COVID-19 vaccine and financial support if they lose their job. They must invest in public services and low carbon sectors to create millions of new jobs and ensure everyone has access to a decent education, health, and social care, and they must ensure the richest individuals and corporations contribute their fair share of tax to pay for it. <\/span><\/em><\/p>\n<p><em><span lang=\"EN-CA\" xml:lang=\"EN-CA\">\u201cThese measures must not be band-aid solutions for desperate times but a \u2018new normal\u2019 in economies that work for the benefit of all people, not just the privileged few.\u201d<\/span><\/em><\/p><\/blockquote>\n<\/div>\n<\/div>\n<\/div>\n<h2>Notes to editors<\/h2>\n<div class=\"paragraph paragraph--type--notes-to-editors paragraph--view-mode--default max-width-text copy-body\">\n<div>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\"><a target=\"_blank\" href=\"https:\/\/oxfam.box.com\/s\/m7lab231vgyee3hti2qigu8qvc6o9wd1\" >Download<\/a> \u2018<em>The Inequality Virus\u2019 <\/em>report and summary, methodology document outlining how Oxfam calculated the statistics in the report, pictures, footage and case studies.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">During the week of 25 January, the World Economic Forum (WEF) will digitally convene the \u2018Davos Dialogues\u2019, where key global leaders will share their views on the state of the world in 2021. <\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Oxfam\u2019s calculations are based on the most up-to-date and comprehensive data sources available. Figures on the very richest in society come from <a target=\"_blank\" href=\"https:\/\/www.forbes.com\/billionaires\/\" >Forbes\u2019 2020 Billionaires List<\/a>. Because data on wealth was very volatile in 2020, the Credit Suisse Research Institute has delayed the release of its annual report on the wealth of humanity until spring 2021. This means that we have not been able to compare the wealth of billionaires to that of the bottom half of humanity as in previous years. <\/span><\/p>\n<p><a target=\"_blank\" href=\"https:\/\/www.forbes.com\/billionaires\/\" >According to Forbes<\/a> the 10 richest people, as of December 31st 2020, have seen their fortunes grow by $540 billion dollars since 18 March 2020. The 10 richest men were listed as: Jeff Bezos, Elon Musk, Bernard Arnault and family, Bill Gates, Mark Zuckerberg, Larry Ellison, Warren Buffett, Zhong Shanshan, Larry Page, and Mukesh Ambani.<\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">The oldest historical records of inequality trends are based on tax records that go back to the beginning of the 20th century.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">The <\/span><a target=\"_blank\" href=\"https:\/\/openknowledge.worldbank.org\/bitstream\/handle\/10986\/34496\/9781464816024.pdf\" >World Bank<\/a><span lang=\"EN-CA\" xml:lang=\"EN-CA\"> has simulated what the impact of an increase in inequality in almost every country at once would mean for global poverty. The Bank finds that if inequality (measured by the Gini coefficient) increases by 2 percentage points annually and global per capita GDP growth contracts by 8 percent, 501 million more people will still be living on less than $5.50 a day in 2030 compared with a scenario where there is no increase in inequality. As a result, global poverty levels would be higher in 2030 than they were before the pandemic struck, with 3.4 billion people still living on less than $5.50 a day. This is the Bank\u2019s worst-case scenario, however projections for economic contraction across most of the developing world are in line with this scenario. <\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">In the <\/span><a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/Publications\/WEO\/Issues\/2020\/09\/30\/world-economic-outlook-october-2020\" >World Economic Outlook<\/a><span lang=\"EN-CA\" xml:lang=\"EN-CA\"> (October 2020), the International Monetary Fund\u2019s worst-case scenario does not see GDP returning to pre-crisis levels until the end of 2022. The <\/span><a target=\"_blank\" href=\"https:\/\/www.oecd.org\/economic-outlook\/\" >OECD has warned<\/a><span lang=\"EN-CA\" xml:lang=\"EN-CA\"> this will lead to long-term increases in inequality unless action is taken.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Oxfam calculated that 112 million fewer women would be at risk of losing their jobs or income if men and women were equally represented in low-paid, precarious professions that have been most impacted by the COVID-19 crisis based on an <\/span><a target=\"_blank\" href=\"https:\/\/www.ilo.org\/wcmsp5\/groups\/public\/---ed_emp\/documents\/publication\/wcms_751785.pdf\" >ILO policy brief<\/a><span lang=\"EN-CA\" xml:lang=\"EN-CA\"> published in July 2020.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">All amounts are expressed in US dollars.<\/span><\/p>\n<p><span lang=\"EN-CA\" xml:lang=\"EN-CA\">Oxfam is part of the <\/span><a target=\"_blank\" href=\"https:\/\/www.fightinequality.org\/\" >Fight Inequality Alliance<\/a><span lang=\"EN-CA\" xml:lang=\"EN-CA\">, a growing global coalition of civil society organizations and activists that are holding the Global Protest to Fight Inequality from 23-30 January in around 30 countries, including Kenya, Mexico, Norway and the Philippines, to promote solutions to inequality and demand that economies work for everyone.\u00a0 <\/span><\/p>\n<\/div>\n<\/div>\n<h3>Contact Information:<\/h3>\n<div class=\"paragraph paragraph--type--contact-information paragraph--view-mode--default max-width-text copy-body\">\n<div>\n<ul>\n<li>Anna Ratcliff, <a href=\"mailto:anna.ratcliff@oxfam.org\">anna.ratcliff@oxfam.org<\/a>, +44 7796993288<\/li>\n<li>Laura Rusu, <a href=\"mailto:laura.rusu@oxfam.org\">laura.rusu@oxfam.org<\/a>, +1\u00a0<span lang=\"EN-US\" xml:lang=\"EN-US\">(202) 459-3739<\/span><\/li>\n<\/ul>\n<blockquote><p>For updates follow @oxfam<\/p><\/blockquote>\n<p><a target=\"_blank\" href=\"https:\/\/www.oxfam.org\/en\/press-releases\/mega-rich-recoup-covid-losses-record-time-yet-billions-will-live-poverty-least\" >Go to Original &#8211; oxfam.org<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>25 Jan 2021 &#8211; A new global survey of 295 economists from 79 countries, commissioned by Oxfam, reveals that 87 percent of respondents expect an \u2018increase\u2019 or a \u2018major increase\u2019 in income inequality in their country as a result of the pandemic. Oxfam\u2019s report shows how the rigged economic system is enabling a super-rich elite to amass wealth in the middle of the worst recession since the Great Depression while billions of people are struggling to make ends meet and how the pandemic is deepening long-standing economic, racial and gender divides.<\/p>\n","protected":false},"author":4,"featured_media":178053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[197],"tags":[1829,1868,1982,289,610,1803,1864,996,1213],"class_list":["post-178050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-special-feature","tag-coronavirus","tag-covid-19","tag-economic-crisis","tag-economy","tag-inequality","tag-oxfam","tag-pandemic","tag-poverty","tag-super-rich"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/178050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=178050"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/178050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/178053"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=178050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=178050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=178050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}