This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/magazine-30949796
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Where do the wealthiest 1% live? | Where do the wealthiest 1% live? |
(about 8 hours later) | |
As the business and political elite met at the World Economic Forum in Davos this week, there was much talk of rising inequality, and many references to the "wealthiest 1%". The phrase conjures up images of billionaires living on private islands - but is that who the 1% really are? | |
A report by the charity Oxfam released to coincide with the Davos gathering caused a stir by predicting that the wealthiest 1% will soon own more than the rest of the world's population. | A report by the charity Oxfam released to coincide with the Davos gathering caused a stir by predicting that the wealthiest 1% will soon own more than the rest of the world's population. |
It drew on research from the bank Credit Suisse, which estimated total global household wealth in 2014 at $263tn (£175tn). | It drew on research from the bank Credit Suisse, which estimated total global household wealth in 2014 at $263tn (£175tn). |
That's wealth, not income. It is calculated as assets minus debt. | That's wealth, not income. It is calculated as assets minus debt. |
Obviously billionaires like Bill Gates, Warren Buffett and Mark Zuckerberg are part of the 1%. But who else is? According to Credit Suisse, another 47m people - everyone with wealth of $798,000 (£530,000) or more. | Obviously billionaires like Bill Gates, Warren Buffett and Mark Zuckerberg are part of the 1%. But who else is? According to Credit Suisse, another 47m people - everyone with wealth of $798,000 (£530,000) or more. |
That includes many people in rich countries who may not regard themselves as particularly wealthy, but who simply own their house outright or have paid off a significant chunk off their mortgage. | That includes many people in rich countries who may not regard themselves as particularly wealthy, but who simply own their house outright or have paid off a significant chunk off their mortgage. |
Among them are: | Among them are: |
Germany has the biggest economy in Europe. The reason it has fewer wealthy people - by Credit Suisse's measure - is that it has lower levels of home ownership. | Germany has the biggest economy in Europe. The reason it has fewer wealthy people - by Credit Suisse's measure - is that it has lower levels of home ownership. |
There are two Asian countries with more than a million people in the top 1%: | There are two Asian countries with more than a million people in the top 1%: |
The country with the largest proportion of its population in the 1% per capita is Switzerland. One in 10 Swiss residents - 800,000 out of 8m - have assets worth more than $798,000. | The country with the largest proportion of its population in the 1% per capita is Switzerland. One in 10 Swiss residents - 800,000 out of 8m - have assets worth more than $798,000. |
But Credit Suisse's report doesn't tell the whole story. | But Credit Suisse's report doesn't tell the whole story. |
It doesn't take into account how much it costs to buy goods in each country, for example. Half a million pounds might buy a one-bedroom flat in central London, but in other countries it could buy a mansion. | It doesn't take into account how much it costs to buy goods in each country, for example. Half a million pounds might buy a one-bedroom flat in central London, but in other countries it could buy a mansion. |
It also doesn't take into account income. As a result, many well-paid young people in Western countries may fall into the bottom 50% of wealth - either because they still have student debt to pay off, or because they know how to live well, and spend all their income. | It also doesn't take into account income. As a result, many well-paid young people in Western countries may fall into the bottom 50% of wealth - either because they still have student debt to pay off, or because they know how to live well, and spend all their income. |
If entry into the 1% does not guarantee a jet-set lifestyle, this is even truer when it comes to the cut-off point for the wealthiest 10% - for this you only need $77,000 (£50,000) of assets. | If entry into the 1% does not guarantee a jet-set lifestyle, this is even truer when it comes to the cut-off point for the wealthiest 10% - for this you only need $77,000 (£50,000) of assets. |
And the figure required to be in the top half of the world's wealthiest is just $3,650 (£2,400). | And the figure required to be in the top half of the world's wealthiest is just $3,650 (£2,400). |
Subscribe to the BBC News Magazine's email newsletter to get articles sent to your inbox. | Subscribe to the BBC News Magazine's email newsletter to get articles sent to your inbox. |