In 2016, just 1 percent of the world's population owned more than 50 percent of the world's wealth. According to the data from the Credit Suisse Research Institute, inequlity of world wealth continues to grow every year. The Institute's assessment is based on a global analysis of national wealth—defined as the value of the financial assets plus real estate (housing) owned by the households, less their debts—and use of the Gini Index, a traditional measure of income distribution and, thereby, inequality. As noted in the Institute’s report:
An increase in wealth inequity can affect the economy of a given nation by reducing the purchasing power of the main drivers of economic growth. Which countries should be put on notice? Many.
According to the 2016 Forbes Billionaires List, the aggregate wealth of the world's 1,810 billionaires is approximately $6.5 trillion, exceeding the GDP of Japan, the world's third largest economy with a GDP of $4.4 trillion. In other words, the wealth of 0.00002% of the world's population accounts for 9 percent of the world's GDP of about $74 trillion. How do we measure the net worth of a billionaire? The estimate is based on total asset value, including stakes in public and private companies, real estate, yachts, art and cash. If a person were a country, we'd measure GDP, which is commonly defined as the sum of the final uses of goods and...
Rising income inequality in the United States over the past quarter century is well documented. For the vast majority of states, the share of income held by the top decile experienced a prolonged period of stability after World War II, followed by a substantial increase in inequality during the 1980s and 1990s. And the most interesting fact that the rising income inequality has positive correlation with the growth of real personal per capita income. Frank, Mark. W. 2009 "Inequality and Growth in the United States: Evidence from a New State-Level Panel of Income Inequality Measure" Economic Inquiry, Volume 47, Issue 1, Pages 55-68