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World leaders are being warned that the continued accumulation of wealth at the top will fuel growing distrust and anger over the coming decade unless action is taken to restore the balance.
An alarming projection produced by the House of Commons library suggests that if trends seen since the 2008 financial crash were to continue, then the top 1% will hold 64% of the world's wealth by 2030. Even taking the financial crash into account, and measuring their assets over a longer period, they would still hold more than half of all wealth.
Since 2008, the wealth of the richest 1% has been growing at an average of 6% a year - much faster than the 3% growth in wealth of the remaining 99% of the world's population. Should that continue, the top 1% would hold wealth equating to $305tn (£216.5tn) - up from $140tn today.
Analysts suggest wealth has become concentrated at the top because of recent income inequality, higher rates of saving among the wealthy, and the accumulation of assets. The wealthy also invested a large amount of equity in businesses, stocks and other financial assets, which have handed them disproportionate benefits.
New polling by Opinium suggests that voters perceive a major problem with the influence exerted by the very wealthy. Asked to select a group that would have the most power in 2030, most (34%) said the super-rich, while 28% opted for national governments. In a sign of falling levels of trust, those surveyed said they feared the consequences of wealth inequality would be rising levels of corruption (41%) or the "super-rich enjoying unfair influence on government policy" (43%).
The research was commissioned by Liam Byrne, the former Labour cabinet minister, as part of a gathering of MPs, academics, business leaders, trade unions and civil society leaders focused on addressing the problem.
The actor Michael Sheen, who has opted to scale back his Hollywood career to campaign against high-interest credit providers, was among those supporting the calls.
The hope is to create pressure for global action when leaders of the G20 group of nations gather for a summit in Buenos Aires in November. Byrne, who organised the first OECD global parliamentary conference on inclusive growth, said he believed global inequality was "now at a tipping point".
"If we don't take steps to rewrite the rules of how our economies work, then we condemn ourselves to a future that remains unequal for good," he said. "That's morally bad, and economically disastrous, risking a new explosion in instability, corruption and poverty."In a sign of the concern about the accumulation of wealth in the hands of so few, the move has gained support from across the political divide.
George Freeman, the Tory MP and former head of the prime minister's policy board, said:
"While mankind has never seen such income inequality, it is also true that mankind has never experienced such rapid increases in living standards. Around the world billions of people are being lifted out of poverty at a pace never seen before. But the extraordinary concentration of global wealth today - fuelled by the pace of technological innovation and globalisation - poses serious challenges.Demands for action from the group include improving productivity to ensure wages rise and reform of capital markets to promote greater equality.
"If the system of capitalist liberal democracy which has triumphed in the west is to pass the big test of globalisation - and the assault from radical Islam as well as its own internal pressures from post-crash austerity - we need some new thinking on ways to widen opportunity, share ownership and philanthropy. Fast."
Danny Dorling, professor of geography at the University of Oxford, said the scenario in which the super-rich accumulated even more wealth by 2030 was a realistic one.
"Even if the income of the wealthiest people in the world stops rising dramatically in the future, their wealth will still grow for some time," he said. "The last peak of income inequality was in 1913. We are near that again, but even if we reduce inequality now it will continue to grow for one to two more decades."
All Nations of the world must take back their Sovereign rights that enable them to create their own supply of domestic, Interest free, Debt free, Social Capital. This is the only realistic way to provide to humanity their share of survival sustenance and protection, without confiscating it from those who already own most of it, or are not willing to vote for social programmes that will allow it. This first step eliminates untold quanta of inflation and Government debt. Every Sovereign independent Nation, or co-operating group of Nations, will then use this Social Capital to totally eliminate Poverty and deprivation in their communities by issuing to all that need it a Social support income, structured to provide a basic break even living standard, support that will continue until death. This community is now in possession of the means that will not only keep them out of poverty but it will also guarantee them the permanent provision of basic human entitlements that sustain life, unencumbered by the whims and ideological beliefs of those determined to deprive them of this dignity. A basic form of rationing life sustaining essentials. The Government will finance all necessary Public Supports and Infrastructures, Health, Housing, Education, and Transport, this would represent "Money Spent" into circulation and will not create inflation; many "modern" economists support this conclusion. The Capital so created will be the sole means of financing the Nations Money Supply. This will become a "trickle Up" economy, replacing the nonsense of trickle down. No Capital or subsidy will go to Private Enterprise directly as cash, for if it did it would cause serious inflation.Capital issued and "spent" into circulation, as described above, would not create inflation. There would be no interference with Private Enterprise. The Private Sector could employ those in receipt of the Social Support by offering wages and hours of employment capable of inducing people to do the work offered; the wage so earned would supplement the Social Wage, not replace it. Thus inducing mutually agreed employment conditions at much lower wage costs to employers.This will act to reverse the export of jobs to overseas destinations. Thus far no or very little taxpayer money has been expended. The burden of support for the poor and the provision of social and community infrastructure has been lifted from the backs of Corporate enterprise and the wealthy. Denial of this could only be based on the "narrow", selfish, greedy motives born of ideology. Control of Social provision will have passed out of the hands of those not willing to vote for higher taxation to facilitate it. Working people are no longer at the mercy of, sometimes unscrupulous, employers or Market forces, that all too often deprive them of secure livelihood and cause them to forfeit hard won assets such as homes and pension funds; regulations will be introduced to prevent such losses and seizures in the future. Working people will more easily change employment to escape unsatisfactory masters and conditions; they will become a proud, socially responsible, independent people. Price and cost inflation will be substantially reduced by ceasing tax collections from wage and salary earners. Instead individuals will pay tax only once, and that when they are deceased, when the taxman will be empowered to asses deceased estates for tax liability. Avoidance will place the whole estate in danger of confiscation. Is there a better time to pay tax other than when we are dead? Corporations and all other commercial enterprise will pay an annual flat rate tax levied against total net profits. Avoidance and imaginative minimisation schemes will not be allowed, all income generated in Australia from commercial, financial, trading and investment activity, will be taxed in Australia. Inter company transfers to overseas Partners or Branches, in any form, will not be permitted unless tax has been paid. Tax allowances will be strictly limited to running,overheads and development expenditures. All money transmitted to overseas destinations will be taxed at twenty percent. Government will not subsidise free enterprise, this great engine, by it's own rules, must stand or fall on it's own merits. The value of Sovereign currencies for international purposes will be decided by co-operating Governments, taking into account the requirements indicated by agreements and cost of trading differentials. Exchange rates will be fixed, stable, out of the influences and control of manipulators and traders. There is much more to be said in explanation, however your own knowledge and experience will enable you to foresee the many attributes such a system delivers. My title for it is "THE UNIVERSAL ECONOMY" for it will work anywhere and for every person, fairly and equitably. A very small "coterie" of Bankers and money power people is holding the world to ransom, they spend untold quanta of money spreading lies about the evils of Social Capital, for their own narrow ideological purposes, populations around the world are in mortal danger, the money power must be re-claimed, and utilised for "The General Good" of Society at large..This will come about when we elect independent politicians who will change our system from being representative to being participatory, and we return the Economy to one operating on sound money. This formula, importantly,takes care of the constantly increasing costs due to population growth and other demographics. Have you read this far? then you have my thanks, your commentary would also be most appreciated. Regards, Thomas W. Adams.