There’s a common perception that the rich keep getting richer, and poor keep getting poorer. The second half of this opinion might not always be true, however, the first half is. According to a recent report released by the Boston Consulting Group, the wealthy proportion of the planet ’s population is wealthier than ever before.
The report said that personal wealth internationally adding up to a staggering $201.9 trillion rose by a full 12% because 2016. This means that riches under the control of people, not corporations or companies, is the highest it’s ever been. To put it differently, the rich have become a great deal richer.
However, this statistic might not be exactly what it seems on the surface.
The statistics say that about 50 percent of all personal wealth in the world is held by a relatively small margin of people, namely those who can call themselves millionaires and billionaires. The rest of those who have yet to reach millionaire status have to continue going into the lottery or playing Blackjack online in the hope of netting a triumph that would put us into this class!
Of the total of $201 trillion personal riches, about $86 trillion belongs to people who reside in the United States. Of the 85 trillion at the United States, 42 per cent is held by people who have over $5 million in funds.
However, the biggest personal wealth climb in recent years hasn’t been in the United States or even Europe as many could have expected. On the contrary, it’s the Asian region that has witnessed the biggest personal wealth increase, specifically in China. China climbed dramatically; overtaking Japan and rocketing up to second place internationally, now sitting just behind the United States. $36.5 trillion of total global personal wealth now resides in China, well ahead of past second place holders, Japan.
Anna Zakrzewski, the writer of this report from Boston Consulting Group, said that the incredible growth of personal wealth in China is not about to slow down . By her reckoning, China will observe equal expansion in the following five decades, with about four times the number of millionaires created as is expected in the United States. In other words; it probably won’t be long before China holds the number one place.
Concerning personal wealth concentration, Eastern Europe and Hong Kong have more billionaires than anyplace else on the planet. Eastern European billionaires control roughly a full quarter of investible wealth in that region. There are a total of 28 Eastern European billionaires in the official high 500 billionaires of the world list, controlling roughly $294 million between them.
In Hong Kong people who have $20 million or more in funds, a percentage that has quickly climbed over the previous five decades, control nearly half of investible wealth in the region. This percentage will probably grow even higher in the coming five decades.
Are the Poor Getting Poorer?
As already said; the understanding that if the rich are getting richer, it finally means that the poor must be getting poorer, is not true. Zakrzewski cleared this up by saying that, contrary expectations; everybody is really getting wealthier, overall. The secret is that rich are only getting richer faster than people at lower income brackets, swelling the sum controlled by millionaires.
Likewise, Zakrzewski pointed out that personal wealth gain away from the United States had a massive increase, given the fact that the dollar is weakening, thus granting extra significance to other currencies. This doesn’t mean that China’s riches gain was artificial, but only that as long as the dollar is losing value, monies past the dollar will constantly be gaining worth.