European Union’s five richest billionaires witnessed a staggering 76% increase in wealth since 2020, reaching a mind-boggling 429 billion euros. Meanwhile, 99% of the EU’s population grapples with diminishing prosperity, marking the onset of a divisive decade, said Oxfam said in a report titled “Inequality Inc.”
CORPORATE DOMINANCE: CEOS AND PRINCIPAL SHAREHOLDERS
Seven out of ten of the world’s largest corporations boast a billionaire as CEO or principal shareholder, amassing a combined worth of 9.3 trillion euros – surpassing the GDPs of all African and Latin American countries. As global business elites convene in Davos, the report highlights the profound impact of corporate power on inequality.
“We’re witnessing the beginnings of a decade of division, with billions of people shouldering the economic shockwaves of pandemic, inflation and war, while billionaires’ fortunes boom. This inequality is no accident; the billionaire class is ensuring corporations deliver more wealth to them at the expense of everyone else,” said Oxfam International interim Executive Director Amitabh Behar.
DECODING THE EU DISPARITY: BILLIONAIRES VS. POPULATION
Despite comprising less than 6% of the global population, the EU hosts 15% of the world’s billionaires, holding 16% of global billionaire wealth. Since 2020, EU billionaires increased their wealth by one-third, reaching a staggering 1.9 trillion Euros in the past year.
URGENT CALL FOR A PROGRESSIVE WEALTH TAX
Oxfam emphasizes the imperative need for a progressive wealth tax on EU multi-millionaires and billionaires, ranging from 2 to 5 percent. This taxation strategy could generate a substantial 286.5 billion Euros annually, potentially covering 40% of the EU’s recovery fund.
“Literally, every hour that governments fail to act is worth millions, and the EU is no exception. A European wealth tax is vital to stop us from falling into a new age of billionaire supremacy. By fairly taxing Europe’s richest, the EU holds the key to start narrowing the chasm between them and the rest of us,” said Chiara Putaturo, Oxfam’s EU tax expert.
CORPORATE PROFIT SURGE: A PARALLEL NARRATIVE
As the super-rich amass fortunes, 22 major EU companies reported a net profit of 172 billion Euros from July 2022 to June 2023. This marks a 66% increase compared to their average profit from 2018 to 2021. The report reveals the alarming trend of corporate and monopoly power contributing to income inequality.
THE MODERN MONOPOLY MAN: BERNARD ARNAULT’S INFLUENCE
Illustrating the concentration of wealth and power, the report points to Bernard Arnault, the world’s second richest man. Arnault oversees the luxury goods empire LVMH, owns major media outlets, and symbolizes the unchecked influence of billionaires in shaping economic landscapes.
CORPORATE TAX EVASION: A GLOBAL CHALLENGE
Oxfam exposes a “war on taxation” waged by corporations, showcasing the EU’s corporate tax rate plummeting from 32.2% in 2000 to 21.5% in 2023. Globally, only 4% of the largest 1,600 companies publicly disclose their global tax strategy and income taxes paid across all nations.
GLOBAL WORKFORCE STRUGGLES: PRECARIOUS JOBS AND LOST WAGES
Amidst these wealth accumulations, people worldwide toil in precarious and unsafe jobs for poverty wages. Nearly 800 million workers have seen their wages fail to keep up with inflation, resulting in a staggering loss of 1.4 trillion Euros over the last two years.
URGENT ACTION NEEDED: GOVERNMENTS AND CORPORATIONS CALLED UPON
Oxfam’s report issues a call to action, urging governments to address the widening wealth chasm. The examples of anti-monopoly cases against corporations, such as Amazon, and international efforts to reshape tax rules, highlight potential avenues for lawmakers to curb corporate dominance.
As the economic landscape becomes increasingly divided, the report underscores the responsibility of corporations and the necessity for government intervention to forge a more equitable future.