Latest news with #wealthinequality
Daily Mail
a day ago
- Business
- Daily Mail
Britain saw second-biggest household wealth decline among major economies last year, says UBS
Average real-term household wealth across Britain fell by 3.6 per cent last year, a global analysis by UBS suggests. A chart in UBS' latest Global Wealth Report indicates that Britain suffered the second highest decline in average real-term wealth of any major economy last year. According to Michel Frey, head of UK high net worth business in UBS' wealth management arm, average real-term household wealth in Britain slipped as cost of living pressures and higher interest rates outpaced most financial market or property price growth. This combination of forces, Frey told City AM, hampered some people's ability to retain or build wealth, particularly among high net worth individuals. Paul Donovan, chief economist at UBS Global Wealth Management, told This is Money: 'Most people in Britain enjoyed a significant increase in their real wealth levels in 2024 – median wealth grew over 5 per cent in real terms and wealth distribution became more equal. 'However a number of higher income households experienced slower wealth growth, and when adjusted for inflation the experience of this group pushed the average lower.' He continued: 'Higher income households tend to hold more equity than most UK households, and the underperformance of the UK equity market compared to European and US equities will have contributed to that. 'Countries where wealth inequality increased are more likely to have experienced higher average real wealth growth than the UK.' While real-term household wealth across Britain fell 3.6 per cent in 2024, median wealth rose by just over 5 per cent. Amid concerns over a growing exodus of wealthy individuals from Britain, Rachel Rachel Reeves is reportedly mulling a softening of non-dom inheritance tax rules. Aside from Britain, the likes of Turkey, Mexico, France, the UAE, mainland China and Russia also saw average real-term household wealth fall in 2024, according to UBS. In Turkey, where inflation topped 75 per cent at one point in 2024, average real-term household wealth fell 14 per cent last year, the findings showed. UBS said: 'Measured in USD, in real terms over half of the 56 markets in the sample not only didn't take part in the world's growth last year, but saw their average wealth per adult decline.' Global wealth grew 4.6 per cent in 2024 after a 4.2 per cent increase in 2023, continuing a consistent upward trend, UBS said. Private individuals' net worth rose 4.6 per cent worldwide, and by over 11 per cent in the Americas, driven by a stable US dollar and upbeat financial markets, the UBS report found. Data: A chart by UBS showing global average wealth and median wealth data Elsewhere in the research, UBS said more than 379,000 people became new US dollar millionaires in the US last year, equating to more than 1,000 per day. Mainland China saw over 386 new millionaires every day, equating to 141,000 in the course of 2024, equivalent to an increase of 2.3 per cent on the previous year. Switzerland continued to top the list for average wealth per adult on an individual market level, followed by the US, Hong Kong and Luxembourg. This week, data from the Office for National Statistics showed that inflation across Britain was 3.4 per cent in May, down from 3.5 per cent in June. ONS acting chief economist Richard Heys said on Wednesday: 'A variety of counteracting price movements meant inflation was little changed in May. 'Air fares fell this month, compared with a large rise at the same time last year, as the timing of Easter and school holidays affected pricing. Meanwhile, motor fuel costs also saw a drop.' He added: 'These were partially offset by rising food prices, particularly items such as chocolates and meat products. 'The cost of furniture and household goods, including fridge freezers and vacuum cleaners, also increased.' Britain's economy slowed sharply in April, reflecting shockwaves from Trump's announcement of wide-ranging tariffs and a one-off hit from the end of a tax break on property sales. Gross domestic output shrank by a larger-than-expected 0.3 per cent in April from March, representing the biggest monthly drop since October 2023 and following 0.2 per cent growth in March.
Washington Post
11-06-2025
- Business
- Washington Post
Forget ‘Trump accounts.' Here's how to secure our children's future.
Darrick Hamilton is chief economist at the AFL-CIO and director of the Institute on Race, Power and Political Economy at the New School. Ayanna Pressley, a Democrat, represents Massachusetts's 7th Congressional District in the U.S. House of Representatives. In the United States, the wealthiest nation in the world, a child born into poverty is unlikely to ever climb out of it. Wealth inequality in this country has reached historic highs, with the top 10 percent of households holding 67 percent of the nation's total wealth, while the bottom 50 percent holds just 2.5 percent. This means that millions of children grow up lacking basic economic security.
Associated Press
09-06-2025
- Business
- Associated Press
Can $1,000 at birth change a child's future? A Republican proposal aims to find out
WASHINGTON (AP) — When children of wealthy families reach adulthood, they often benefit from the largesse of parents in the form of a trust fund. It's another way they get a leg up on less affluent peers, who may receive nothing at all — or even be expected to support their families. But what if all children — regardless of their family's circumstances — could get a financial boost when they turn 18? That's the idea behind a House GOP proposal backed by President Donald Trump. It would create accounts for all babies born in the U.S. over the next four years with $1,000 that would accrue interest until the children reach adulthood. At age 18, they could withdraw the money to put toward a down payment for a home, education or to start a small business. If the money is used for other purposes, it'll be taxed at a higher rate. It builds on the concept of ' baby bonds,' which two states — California and Connecticut — and the District of Columbia have introduced as a way to reduce gaps between wealthy people and poor people. Rep. Blake Moore, a Republican from Utah, spearheaded the effort to get the initiative into a massive House spending bill. In an op-ed for the Washington Examiner, he said wealth inequality has soured many people on capitalism. 'Trump Accounts,' as the proposal calls them, could be the antidote, he said. 'We know that America's economic engine is working, but not everyone feels connected to its value and the ways it can benefit them,' Moore wrote. 'If we can demonstrate to our next generation the benefits of investing and financial health, we can put them on a path toward prosperity.' The bill calls for the money to be handled by investment firms. The bill would require at least one parent to produce a Social Security number with work authorizations, meaning the U.S. citizen children born to some categories of immigrants would be excluded from the benefit. But unlike other baby bond programs, which generally target disadvantaged groups, this one would be available to families of all incomes. 'When little baby is born they're gonna start off with a thousand dollars and if we do a good job of investing their money — we're going to go with one of the investing guidelines, who the hell knows if they're any good — but they have a chance to be very rich,' Trump said at a rally last week in Pittsburgh. 'It's going to be very cute to see.' Economist Darrick Hamilton of The New School, who first pitched the idea of baby bonds a quarter-century ago, said the GOP proposal would exacerbate rather than reduce wealth gaps. He envisioned a program that would be universal but would give children from poor families a larger endowment than their wealthier peers, in an attempt to level the playing field. The money would be handled by the government, not by private firms on Wall Street. 'It is upside down,' Hamilton said. 'It's going to enhance inequality.' Hamilton added that $1,000 — even with interest — would not be enough to make a significant difference for a child living in poverty. A Silicon Valley investor who created the blueprint for the proposal, Brad Gerstner, said in an interview with CNBC last year that the accounts could help address the wealth gap and the loss of faith in capitalism that represent an existential crisis for the U.S. 'The rise and fall of nations occurs when you have a wealth gap that grows, when you have people who lose faith in the system,' Gerstner said. 'We're not agentless. We can do something.' The proposal comes as Congressional Republicans and Trump face backlash for proposed cuts to programs that poor families with children rely on, including food assistance and Medicaid. Even some who back the idea of baby bonds are skeptical, noting Trump wants to cut higher education grants and programs that aid young people on the cusp of adulthood — the same age group Trump Accounts are supposed to help. Pending federal legislation would slash Medicaid and food and housing assistance that many families with children rely on. Young adults who grew up in poverty often struggle with covering basics like rent and transportation — expenses that Trump Accounts could not be tapped to cover, said Eve Valdez, an advocate for youth in foster care in southern California. Accounts for newborn children that cannot be accessed for 18 years mean little to families struggling to meet basic needs today, said Shimica Gaskins of End Child Poverty California. 'Having children have health care, having their families have access to SNAP and food are what we really need ... the country focused on,' Gaskins said. ___ The Associated Press' education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Al Bawaba
04-06-2025
- Business
- Al Bawaba
billionaires' wealth in Australia increase by $88 million per day
ANKARA Australian billionaires have seen their wealth grow by an average of more than AUD$137 million (approximately $88 million) per day over the past decade, even as millions of Australians struggle with soaring living costs, according to a new analysis by Oxfam Australia. Released Tuesday, the report -- based on the Australian Financial Review Rich List -- reveals that the number of billionaires in the country more than doubled between 2015 and 2025, rising from 74 to 161. Their combined net worth also surged by 160%, reaching AUD$667.8 billion (around $431 billion). This translates to a staggering AUD$95,000 (approximately $61,344) added every minute. Oxfam said that property remains the most frequent source of wealth for Australia's richest individuals, followed by sectors such as retail, investments, and mining. "Over the last 10 years, property has been the most frequent source of wealth accumulation for Australia's richest, followed by retail, investments and mining/resources," said Oxfam. It shows growing economic gap in the country where the richest continue to grow while the common Australian faces the worst housing crisis, and many are struggling with the cost-of-living crisis 'This level of inequality is not just morally wrong – it's economically and socially dangerous. While millions of Australians are struggling to make ends meet, the country's richest continue to amass eye-watering fortunes, often without lifting a finger," said Chrisanta Muli, Oxfam Australia acting chief executive. In the country of around 27 million people, some two million Australian households struggled to put food on the table families skip meals and struggle to pay their bills, according to Muli.
The Guardian
02-06-2025
- Business
- The Guardian
Trump's tax bill helps the rich, hurts the poor and adds trillions to the deficit
The blush is off the rose, or, rather, the orange. The erstwhile 'First Buddy' and born-again fiscal hawk Elon Musk recently said he was 'disappointed' by Donald Trump's spendthrift budget currently under debate in the US Senate. Squeaking through the House of Representatives thanks to the capitulation of several Republican deficit hardliners, this 'big, beautiful bill' certainly increases the federal debt bigly – by nearly $4tn over the next decade. Equally disappointed are those who have been busy burnishing Trump's populist veneer. Steve Bannon had repeatedly promised higher taxes for millionaires, but he has confessed he's 'very upset'. That's because the bill would cut taxes by over $600bn for the top 1% of wage-earners, also known as millionaires. It amounts to the largest upward transfer of wealth in American history. Yet this double betrayal will do nothing to impede the sundry Maga apparatchiks' breathless support for their dear leader. Musk has already tweeted his gratitude to the president for the opportunity to lead Doge (that is, slash funding for cancer research). So this bill has once again proven Republicans' willingness to relinquish their convictions as long as they can keep their grasp on power. And for Trump, it has reaffirmed that his pledged golden age is really just a windfall for the uber-wealthy like him. Now there can be no mistaking that Republicans' governing philosophy is neither conservatism nor populism but unabashed hypocrisy. Expecting the self-proclaimed King of Debt to balance the budget – or hoping workers would be protected by the billionaire whose personal motto is 'You're fired' – was always imaginative thinking at best. In his first term, Trump added $8tn to the national deficit. Even excluding Covid relief spending, that's twice as much debt as Joe Biden racked up during his four years in the White House. Almost $2tn of that tab came from Trump's vaunted tax cut, which delivered three times more wealth to the top 5% of wage earners than it did to the bottom 60%. Nor did its benefits trickle down, with incomes remaining flat for workers who earn less than $114,000. Trump's disingenuousness on the deficit continues a hallowed Republican tradition. All four Republican presidents since 1980 have increased the federal debt. By combining reckless militarism with rampant corporatism, George W Bush managed to balloon it by 1,204%. When Bush's treasury secretary Paul O'Neill expressed concern about that spending, Dick Cheney, the then-vice president, reportedly retorted: 'Deficits don't matter.' Except, of course, when a Democrat occupies the Oval Office. During his campaign for the US Senate in 2022, JD Vance derided Biden's signature $1tn infrastructure package as a 'huge mistake' that would waste money on 'really crazy stuff'. Like improving almost 200,000 miles of roads and repairing over 11,000 bridges across the country. Apparently less crazy, but certainly more callous, are the vertiginous cuts to the social safety net proposed in Trump's current budget bill. Its $1tn evisceration of Medicaid and Snap would leave 8 million Americans uninsured and potentially end food assistance for 11 million people, including 4 million children. When the Democratic Representative Ro Khanna introduced an amendment to maintain coverage for the 38 million kids who receive their healthcare through Medicaid, Republicans blocked it from even receiving a vote. But for all the budget's austerity, it also provides $20bn in tax credits to establish a national school voucher program. And equally outrageous are its provisions that have nothing to do with the pecuniary, from easing regulations on gun silencers to hamstringing the power of courts to enforce injunctions. Perhaps most breathtaking of all, though, is how shamelessly the bill enriches the already mega-rich. In its first year, its tax breaks will grace Americans in the top 0.1% of the income bracket with an additional $400,000, while decreasing the earnings of people in the bottom 25% by $1,000. In other words, those who can least afford it are financing relief for those who least need it. When the 50% of working class Americans who broke for Trump in last year's election realize they voted for a pay cut, they might begin to feel a bit disillusioned with the crypto trader-in-chief. They might even feel pulled to the authentically populist vision outlined by the progressives Bernie Sanders and Alexandria Ocasio-Cortez on their nationwide Fighting Oligarchy Tour. In the meantime, it is almost an inevitability that Republican senators will wring their hands before pressing the green button to vote 'yea.' Josh Hawley has called the budget bill 'morally wrong and politically suicidal', criticism which Trump has previously mocked as 'grandstanding'. The insult contains a typically Trumpian flash of psychological insight, because Hawley and his colleagues will no doubt do exactly what their counterparts in the House have already done – cave. Once Trump has scribbled his oversized signature onto the bill, his vision for the US will have become unmistakable. Try as they might, not even the spinmeisters at Fox News will be able to deny that he runs this country the way he ran his Atlantic City casinos, leading working Americans to financial ruin while he emerges all the richer for it. Katrina vanden Heuvel is editorial director and publisher of the Nation, a member of the Council on Foreign Relations, and a contributor to the Washington Post, the New York Times and the Los Angeles Times
