Inequality and the Covid 19 Pandemic

17 January 2022 - The charity Oxfam has released a report on global inequality and announced that the ten richest men have more than doubled their collective wealth throughout the pandemic. 

Their collaborative wealth has increased from $700 billion to $1.5 trillion. However, the individual wealth increases vary significantly. Elon Musk's (world's richest man) wealth increased by 1000%, while Bill Gate's (worlds fourth richest man) wealth increased by 30%. Ireland's nine billionaires wealth has risen by 58%, from €31.4 billion to €49.7 billion.

Level of inequality

Oxfam GB's CEO, Danny Sirskandarajah, highlighted the level of inequality, stating that in comparison, 99% of the world's population is worse off, with 160 million more people having been pushed into poverty. The report uses £4.02 (€4.81) a day to measure poverty in upper-middle-income countries.

Oxfam has called for a wealth tax, suggesting that the money raised could be used to recover from the pandemic. A 1.5% wealth tax on Irish millionaires with over 4 million could raise 4 billion in tax revenue, with the 1.5% tax on Irish billionaires raising an additional 0.7 billion. 

CEO of Oxfam Ireland, Jim Clarken, highlighted "that central banks have poured trillions of euros into finical markets to save the economy during the pandemic'. However, "most of that money ended up lining the pockets of billionaires ridding the stock market boom". Clarken continued arguing the time for progressive measures such as a wealth tax and debt relief, or cancellation is now. Clarken believes Ireland could lead by example within the EU by introducing the 1.5% wealth tax that would positively affect Ireland's society as it recovers after the pandemic. 

Billionaire boom

The report suggests that we live through a billionaire boom with the most significant surge of billionaires since records began. According to Oxfam, every day since the pandemic started, a new billionaire has been created. Furthermore, the wealth of billionaires has increased by €4.35 trillion since the start of the pandemic. In contrast, inequality has contributed to the death of 21 000 people a day, or one person every four seconds. 

Mr Sriskandarajah highlighted the institutionalised impact of wealth inequality, stating that even in a global pandemic, the economic system manages to deliver 'eye-watering windfalls for the wealthiest' while still failing to 'protect the poorest'. Mr Sriskandarajah emphasised the historical moment we now have for politicians to implement strong economic reform that could 'change the deadly course we are on'. 

Elon Musk has seen his wealth skyrocket throughout the pandemic. Forbes reported that Musk had a net worth of $24.6 billion in April 2020, and now his real-time net worth reported by Forbes is $268.1 billion. 

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