Top 10 US billionaires gain $700B as wealth gap widens
What's the story
The top 10 billionaires in the United States have seen their collective wealth increase by a staggering $698 billion over the past year, according to a report by Oxfam America. The study highlights how policies from both Republican and Democratic administrations have contributed to widening the wealth gap in the country. It also shows that between 1989 and 2022, the richest 1% of American households gained 101 times more wealth than median households.
Disparity details
Stark contrast in wealth gains
The report highlights that the top 1% of households gained an average of $8.35 million per household between 1989 and 2022. In stark contrast, the average American household saw a much smaller gain of just $83,000 during this same period. This massive difference underscores the growing wealth disparity in the United States over the last three decades.
Poverty statistics
40% of US population in low-income group
The report also reveals that over 40% of the US population, including nearly half of all children, are classified as low-income. These families earn less than double the national poverty line. When compared to 38 other high-income nations in the Organisation for Economic Co-operation and Development (OECD), the US has the highest rate of relative poverty. It also has the second-highest child poverty and infant mortality rates, as well as the second-lowest life expectancy rate.
Policy perspective
Inequality as a policy choice
Rebecca Riddell, Senior Policy Lead for Economic Justice at Oxfam America, has called inequality a "policy choice." She said the comparisons show that different choices can be made when it comes to poverty and inequality in society. The report highlights how systems such as tax codes, social safety nets, and worker protections have been slowly dismantled over time.
Tax impact
Trump's tax plan
The report also highlights Donald Trump's tax plan, dubbed "one big, beautiful bill," as one of the biggest transfers of wealth upward in decades. The legislation was passed by Congress in May and is seen to have favored the wealthy and corporations. However, Riddell notes that policymakers from both parties have supported policies contributing to inequality over the last 40 years.
Proposed solutions
Policy recommendations to reduce inequality
The report suggests four categories of policy recommendations to reduce inequality: campaign finance reform and antitrust policy; using the tax system to reduce inequality through taxes on the wealthy and corporations; strengthening the social safety net; and protecting unions. However, these solutions could be politically difficult due to long-standing stigmatization of social safety nets and taxation.