Economic Power controlled by a few

According to landmark World Inequality Report Economic power is unevenly distributed. The richest 1% reaped 27% of the world’s income between 1980 and 2016. The extremely rich are becoming more powerful than ever.

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Economic Power controlled by a few
Economic Power controlled by a few

With statistics which show inequality, reports state that by 2030 just 250 people could own 1.5% of the wealth in the world. Higher profits and tax structures that favour the rich are partly to blame for such atrocities. Globalisation has proven to stagnate those in the power and middle income groups of North America and Europe.

Politics is the reason for this inequality, and consequently this inequality will prove to be a major problem in politics. Donald Trump, the not so popular president of the United States uses working class anger to win over support, but is also helping a tax haven for the richest 0.1% with a low tax cut. Frances, Emmanuel Macron desires to tax wages more than business incomes in France, which is basically giving the rich a upper hand.

The least a country could do is help the poverty levels reduce, with equitable solutions. Politicians need to ensure taxes are progressive and take into account the rich escaping taxes. India’s demonetisation move in November 2016, was a step ahead by ensuring the rich don’t escape their taxes.  Taxes as a result can be used to improve living conditions in a country, and ensuring good education and healthcare.

The governments don’t seem to realise the repercussions of helping the rich. Democracy is the voice of the people, but as the rich get more powerful they will take control of the voice of the people. Governments whether it is democratic or socialist will not have the control to make decisions, as the rich who constitute for most of the wealth will have all the rights in making decisions.

US supreme court justice Louis Brandeis said it best by “We may have democracy, or we may have wealth concentrated in the hands of a few, but we can’t have both.”