For The First Time Ever, The "1%" Own More Than Half The World's Wealth: The Stunning Chart

Tyler Durden's picture

Today Credit Suisse released its latest annual global wealth report, which traditionally lays out what has become the single biggest reason for the recent "anti-establishment" revulsion: an unprecedented concentration of wealth among a handful of people, as shown in Swiss bank's infamous global wealth pyramid, an arrangement which as observed by the "shocking" political backlash of the past year, suggests that the lower 'levels' of the pyramid are increasingly unhappy about.

As Credit Suisse tantalizingly shows year after year (most recently one year ago), the number of people who control roughly half of the global net worth, or 45.9% of the roughly $280 trillion in household wealth, is declining progressively relative to the total population of the world, and in 2017 the number of people who were worth more than $1 million was just 36 million, roughly 0.7% of the world's population of adults. On the other end of the pyramid, some 3.5 billion adults had a net worth of less than $10,000, accounting for just about $7.6 trillion in household wealth. And inbetween is the so-called global middle class - those 1.4 billion people whose rising anger at the status quo made Brexit and Trump possible.

As the report authors write, there is just one group to have benefited from the Fed's post-crisis monetary policies: " Our calculations show that the top 1% of global wealth holders started the millennium with 45.5% of all household wealth. This share was about the same until 2006, then fell to 42.5% two years later. The downward trend reversed after 2008 and the share of the top one percent has been on an upward path ever since, passing the 2000 level in 2013 and achieving new peaks every year thereafter. According to our latest estimates, the top one percent own 50.1 percent of all household wealth in the world.”

As the bank then laconically adds, "Global wealth inequality has certainly been high and rising in the post-crisis period." And as the chart below shows, in 2017, for the first time ever, the richest 1% now controls just over half, or 50.1%, of global wealth.

To be sure, 2017 was a good year for the rich: it saw 2.3 million people becoming new dollar millionaires, with the total number of millionaires increasing  to 36 million. “The number of millionaires, which fell in 2008, recovered fast after the financial crisis, and is now nearly three times the 2000 figure,” Credit Suisse said. The poorest 3.5 billion people, who account for 70 percent of the working age population, each earn less than $10,000 and account for just 2.7 percent of global wealth.

It's only getting better... for the rich that is: with global wealth now at $280 trillion, this figure is expected to grow to over $340 trillion in five years. 

For those asking, you need to own $76,754 to be a member of the top 10% of global wealthholders and $770,368 to belong to the top 1%.

The report said the poor are mostly found in developing countries, with more than 90% of adults in India and Africa having less than $10,000. “In some low-income countries in Africa, the percentage of the population in this wealth group is close to 100%,” the report said. “For many residents of low-income countries, life membership of the base tier is the norm rather than the exception.”

Meanwhile at the top of what Credit Suisse calls the “global wealth pyramid”, the 36 million people with at least $1m of wealth are collectively worth $128.7tn. More than two-fifths of the world’s millionaires live in the US, followed by Japan with 7% and the UK with 6%.

Incidentally, we tracked down the first Credit Suisse report we found in the "wealth pyramid" series, from back in 2010, where the total wealth of the top "layer" in the pyramid was a modest $69.2 trillion for the world's millionaires. It has nearly doubled in the 7 years since then. Meanwhile, the world's poorest have gotten, you got it, poorer, as those adults who were worth less than $10,000 in 2010 had a combined net worth of $8.2 trillion, a number which has since declined to $7.6 trillion in 2016 despite a half a billion increase in the sample size. Meanwhile, the layer right above, also known as the "middle class", has gone exactly nowhere, with a net worth of just over $32 trillion.

How about the very top?

Things here are even more nuanced, with 31.4 million people whose net worth is between $1 and $5 million gradually tapering off  to just 148,200 Ultra High Net Worth individuals who control more than $50 million in assets each.  Of these, 54,800 are worth at least USD 100 million, and 5,700 have assets above USD 500 million. The total number of UHNW adults has risen by 13% (19,600 adults) during the past year, as a result of the widespread gains in wealth, primarily via artificially inflated rising financial assets, and the increase has been relatively uniform across all regions.

* * *

Here are some of the key excerpts from Credit Suisse

Wealth differences within and between countries

Wealth differences between individuals occur for many reasons. Variation in average wealth across countries accounts for much of the observed inequality in global wealth, but there is also considerable disparity within countries. Those with low wealth are disproportionately found among the younger age groups who have had little chance to accumulate assets. Others may have suffered business losses or personal misfortune, or live in regions where prospects for wealth creation are more limited. Opportunities are also sometimes constrained for women or minorities. At the other end of the spectrum there are many individuals with large fortunes, acquired through a combination of talent, hard work and good luck.

The wealth pyramid in Figure 1 captures these differences. The large base of low wealth holders supports higher tiers occupied by progressively fewer adults. We estimate that 3.5 billion individuals – 70% of all adults in the world – have wealth below USD 10,000 in 2017. A further 1.1 billion adults (21% of the global total) fall in the USD 10,000–100,000 range. While average wealth is modest in the base and middle tiers of the pyramid, the total wealth of these segments amounts to USD 40 trillion, underlining the economic importance of this often overlooked group.

The base of the pyramid

The layers of the wealth pyramid are quite distinctive. The base tier has the most even distribution across regions and countries (Figure 2), but also the widest spread of personal circumstances. In developed countries, about 30% of adults fall within this category, and for the majority of these individuals, membership is either transient – due to business losses or unemployment, for example – or a lifecycle phase associated with youth or old age. In contrast, more than 90% of the adult population in India and Africa falls within this range. In some low-income countries in Africa, the percentage of the population in this wealth group is close to 100%. For many residents of low-income countries, life membership of the base tier is the norm rather than the exception.

Mid-range wealth

In terms of global wealth, USD 10,000–100,000 is the mid-range band, covering 1.1 billion adults and encompassing a high proportion of the middle class in many countries. The average wealth of this group is quite similar to global mean wealth, and its combined net worth of USD 33 trillion provides it with considerable economic clout. India and Africa are under-represented in this segment, whereas China’s share is disproportionately high, having  risen rapidly from 12.6% in 2000 to 35% in 2015, where it remains. This contrasts with India, which accounted for just 2.7% of the group in 2000, and only 5.7% now, less than half the share of China at the turn of the century before the rapid rise in its membership.

The high wealth bands

The top tiers of the wealth pyramid – covering individuals with net worth above USD 100,000 – comprised 6.1% of all adults in the year 2000. The proportion rose to 9.1% by the end of the financial crisis, before dropping back to the current level of 8.6%. Regional composition differs markedly from the strata below. Europe, North America and the Asia-Pacific region (omitting China and India) together account for 89% of the group, with Europe alone supplying 155 million members (36% of the total). This compares with just seven million members (1.7% of the global total) in India and Africa combined.

The pattern of membership changes once again for the US dollar millionaires at the top of the pyramid. The number of millionaires in any given country is determined by three factors: the size of the adult population, average wealth, and wealth inequality. The United States scores high on all three criteria, and has by far the greatest number of millionaires: 15.4 million, or 43% of the world total (Figure 3). For many years, Japan held second place in  the millionaire rankings by a comfortable margin – with 13% of the global total in 2011, for example, twice as many as the third placed country. However, the number of Japanese millionaires has fallen, alongside a rise in other countries. As a consequence, Japan’s share of global millionaires dropped to 10% in 2012, and has settled around 7%. This has been linked to a 16% decrease in its average wealth since 2011.

The United Kingdom retains third place with 6% of millionaires worldwide. Germany, China and France each account for 5% of the global total, followed by Italy with 4%, and Canada and Australia at 3%. Korea, Switzerland, Spain, and Taiwan are the remaining four countries hosting more than 360,000 millionaires, the minimum requirement for a one percent share of the global total.

Changing membership of the millionaire group

Year-on-year variations in the number of millionaires can often be traced to real wealth growth or exchange-rate movements. This year, widespread rises in wealth per adult have led to an additional 2.3 million dollar  millionaires, almost half of whom (1.1 million) reside in the United States. Another 620,000 new millionaires are located in the main Eurozone countries (Germany, France, Italy and Spain) partly due to a 3% rise in the euro  against the US dollar. Australia added 200,000 new members and about the same number appeared in China and India taken together. Millionaire numbers fell in very few countries, the main exceptions – all associated with depreciating currencies – being the United Kingdom, which lost 34,000, and Japan, which shed over 300,000.

High net worth individuals

The primary sources of information on wealth distribution – official household surveys – tends to become less reliable at higher wealth levels.To estimate the pattern of wealth holdings above USD 1 million, we therefore supplement the survey data with information gleaned from the Forbes annual tally of global billionaires. These data are pooled for all years since 2000, and wellknown statistical regularities are then used to estimate the intermediate numbers in the top tail. This produces plausible values for the global pattern of asset holdings in the high net worth (HNW) category from USD 1 million to USD 50 million, and in the ultra-high net worth (UHNW) range from USD 50 million upwards.

While the base of the wealth pyramid is characterized by a wide variety of people from all countries and all stages of the lifecycle, HNW and UHNW individuals are heavily concentrated in particular regions and countries, and tend to share similar lifestyles, for instance participating in the same global markets for luxury goods, even when they reside in different continents. The wealth portfolios of these individuals are also likely to be more similar, with a focus on financial assets and, in particular, equities, bonds and other securities traded in international markets.

For mid-2017, we estimate that there are 35.9 million HNW adults with wealth between USD 1 million and USD 50 million, of whom the vast majority (31.4 million) fall in the USD 1–5 million range (Figure 4). There are 3.0 million adults worth between USD 5 million and USD 10 million, and another 1.6 million have assets in the USD 10–50 million range. Europe and North America had similar numbers of HNW individuals from 2007 to 2009, but North America then opened up a gap that has widened significantly since 2013. North America now accounts for 16.4 million members (46% of the total), compared to 10.8 million (30%) in Europe. Asia-Pacific countries, excluding China and India, have 6.1 million members (17%), and a further 2.0 million are found in China (5% of the global total). The remaining 1.2 million HNW individuals (2% of the total) reside in India, Africa or Latin America.

Ultra-high net worth individuals

Our calculations suggest that 148,200 adults worldwide can be classed as UHNW individuals, with net worth above USD 50 million. Of these, 54,800 are worth at least USD 100 million, and 5,700 have assets above USD 500 million. The total number of UHNW adults has risen by 13% (19,600 adults) during the past year, as a result of the widespread gains in average wealth. All regions shared in this rise in the number of UHNW individuals.

North America dominates the regional rankings, with 75,000 UHNW residents (51%), while Europe has 31,900 (22%), and 17,500 (12%) live in Asia-Pacific countries, excluding China and India. Among individual countries, the United States leads by a huge margin with 72,000 UHNW adults, equivalent to 49% of the group total (Figure 5), a rise of 9,900 compared to mid-2016. China occupies second place with 18,100 UHNW individuals (up
3,000 on the year), followed by Germany (7,200, up 500). The United Kingdom (4,700, up 400) made up for some of the losses suffered a year ago after the Brexit vote and retained fourth place ahead of France, Australia and Canada (all 3,000). The remaining places in the top ten list of countries are occupied by Switzerland (2,800, up 400), Italy (2,600, up 100) and Korea (2,300, up 300).

The wealth spectrum

The wealth pyramid captures the contrasting circumstances between those with net wealth of a million US dollars or more in the top echelon, and those lower down the wealth hierarchy. Discussions of wealth holdings often focus exclusively on the top tail. We provide a more complete and balanced picture, believing that the middle and base sections are interesting in their own right. One reason is the sheer size of numbers and their political power. However, their combined wealth of USD 40 trillion also yields considerable economic opportunities, which are often overlooked. Addressing the needs of these asset owners can drive new trends in both the consumer and financial industries. China, Korea and Singapore are examples of countries where individuals have risen rapidly through this part of the wealth pyramid. India has shown less progress to date, but has the potential to grow rapidly in the future from its low starting point.

While the middle and lower levels of the pyramid are important, the top segment will likely continue to be the main driver of private asset flows and investment trends. Our figures for mis-2017 indicate that there are now nearly 36 million HNW individuals, including 2.0 million in China, and 6.3 million more in India and other Asia-Pacific countries. At the apex of the pyramid, 148,200 UHNW adults are each worth more than USD 50 million. This includes 18,100 UHNW individuals in China (12% of the global total), nearly 40 times the number at the turn of the century. A further 6,400 UNHW adults (4% of the total) can be found in Taiwan, India, Hong Kong and Singapore.

Source: Credit Suisse

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NoDebt's picture

My GOD, I had no idea it had gotten this bad.

 

Two-bits's picture

Just think when we're reduced to 500,000 people it'll be time to redistribute again because the percentages will be off.

Bastiat's picture

Somehow I don't think they were able to accurately count the assets of the VERY wealthiest.

peddling-fiction's picture

When counting Trillions, few know who possess them.

Manthong's picture

 

..just thinking…….

Maybe.....the bottom 80% or so has way more weaponry …..

And can can do stand-off distance maneuvers….

Gated communities and even escapes in New Zealand might not matter

…. Again….. just thinking

 

Paul Kersey's picture

Most countries, including the U.S., are well down the road to neofeudalism. Feudalism is, as it has been for centuries, the world's social order default system. We live in an era in which economically advanced nations can outsource their labor to third world countries, that, in turn, take on the roles of financially indentured colonies. Consequently, between outsourcing and algorithmic robotics, the industrial workers in OECD nations also become little more than indentured workers. It's too late for revolution, because the revolution has been outsourced.

Bes's picture

good thing trump is on the case

fighting

the MIC

Wall Street

The FED

the Police State

Civil Asset Forfeiture

the "War on Drugs"

Israel

and

Saudi Arabia

------

hahahahahaha!

we all know that if everyone stands for

the national anthem

and the clintons go to jail

then all is well

hahahahahaha!

-----

the oligarchs need a tax cut

they are barely making by

fucking pathetic

beemasters's picture

With that kind of wealth, you can own any head of state to enrich/empower yourself even further and nobody will suspect a thing. There's only a very dim light at the end of the tunnel and it's called 'revolution'.

Captain Nemo de Erehwon's picture

This may not be that much of an issue for the US at present, although essentials and food are getting more expensive, but if your system does not provide essentials to everyone then the trade of labor for money is not free. Free trade is for surplus goods against surplus wealth. You cannot measure the utility of surviving today against getting sneakers in the color you like on the same scale. If the trade is not free, disparity will keep increasing. We have to rethink the very basics of our systems if we do not wish to end up with feudalism again.The difficult part is creating the system in such a way where essentials are provided to all without having to impose economic restrictions on people. That is what we need to do. It is not necessarily impossible ...

Bastiat's picture

Gated communites in a hostile environment need armed guards.  What happens when guards notice they are the ones with the weapons?  Would make a good movie plot.

Two-bits's picture

Do the bottom 50% of the population count as assets of the top 1%.

That double entry shit works for fractional reserve banking...

Yukon Cornholius's picture

Yes, very much so. There is a red number on the back of your Registration of Live Birth that is traded on the bond market. There is most definitely a Goyim Market.

JibjeResearch's picture

Yes.... :)  ... man, that sounds like slavery..

BOPOH's picture

The truth is:

0.0000000000001% owns 99.9999999999999% 

You still have no idea to whom our Earth belongs?

Yes, you right - knows lesss - better sleep.

peddling-fiction's picture

"For The First Time Ever, The Richest 1% Own More Than Half Of The World's Wealth"

Not for too much longer.

Tick, tock...

J S Bach's picture

This may not be entirely true.  It has been speculated that the hidden stolen wealth of the Rothschild dynasty alone is equal to half of the world's wealth.

Two-bits's picture

So what you're saying is it's worse.

I picked a hell of a day to stop sniffing glue.

Good thing I don't have high blood pressure.

Oh wait, fuck. Nevermind.

Chupacabra-322's picture

The factions of the Power Elite will continue to battle each other for control, and sometimes they'll unite on certain issues. We are irrelevant. Trump is irrelevant. No one, and least of all Trump, is coming to save the day.

There will be no chance of positive change until this Tyrannical Lawless empire collapses. The Power Elite are deeply embedded and will continue to run the show until they damage the population so much that a reset is put in motion. Perhaps another 5 or 10 years before this happens. If we even make it that far.

At the current moment we're completely Tyrannically Lawless.

lasvegaspersona's picture

Most wealth is financial wealth, the promise of the 99% to give stuff to the 1%.

If I were the 1% I'd have some doubts about getting all the shit I was promised.

HRClinton's picture

The book "The Millionaire Next Door" discusses the categories of "Accumulators of Wealth".  It is a great book, but...

it's not just reflective of the relationship between personal values and choices, but also of a Society within which this is even possible: an affluent society -- Imperium Americana. 

The Golden Era of Imperium Americana will never happen again.

DC Beastie Boy's picture

Except for ammunition

Money Boo Boo's picture

Piketty is right!!

Giant Meteor's picture

Piketty, Dicketty Dock, the billionaires ran out the clock ..

Scornd's picture

if u cut off your limbs, you are worth less and cant be exploited.

vesna's picture

If heading for Medieval we are on a halfway.

HRClinton's picture

The (((Plan))) is to bring about a Zio-Feudal world. 

Ask the Chabad Lubavich crowd. 

FreeShitter's picture

Stock up on alpo. Remember, its the good shit.

isthatall's picture

What? no darkies? Dat they racist.

buzzsaw99's picture

giant meteor can fix this!

peddling-fiction's picture

How about 1000 of them?

Ya know, just to make sure that the big cities get their fair share of brimstone.

Giant Meteor's picture

Nothing like putting a little pressure on a fella ..

Thanks !

khnum's picture

trickle down econonomics its yellow its warm and from a great height

factorypreset's picture

Which goes to show we can argue about capitalism vs communism vs socialism all we want - the majority of us are still just serfs. 

A. Boaty's picture

A small club, and you ain't in it.

4johnny's picture

sounds healthy

onthedeschutes's picture

For some reason every single person on the planet, except for the FED, saw this coming long long time ago.

rf80412's picture

A critical mass of people think it's a good thing.  Obviously these people are just plain better than the rest of us and the market is rewarding them accordingly.

LawsofPhysics's picture

Define "wealth"...

 

No matter, such "let the majority eat cake" monetary experiments have been tried before.  Absolute power corrupts absolutely.

The 1% are not going to give anything up willingly, period.

In the meantime,

"Full Faith and Credit"

alexcojones's picture

First: Define how YOU measure wealth? 

Then determine whether you are richer or poorer.

Most of those who are considered ultra-wealthy are actually very poor.

Harvey Weinstein a good example

rf80412's picture

Wealth is something you own that makes money for you.  Truly wealthy people don't need to lift a finger to "make" more money than they could spend if they tried.

HRClinton's picture

Wealth isn't just a number. It's what you can with it in terms of perpetual lifestyle. 

For you or me, it probably means having enough money, to not have to work for a living.

For others, it means being able to exert power over other with it. More wealth, more power. 

It comes down to this q: what do you want to do with a lot of money, and why?

chickadee's picture

Unfortunately, despite having 50% of the wealth, the 1% don't  account for 50% of the transactions making up the economy. Therefore, the current trend makes it harder and harder to grow the economy.

“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

Since the beginning of human existence, some king decides who gets filthy rich, and who remains a peasant.

The USA, for a time, did not follow those rules.

Things really changed when the George Bush the Elder family dynasty took over the world.

The Clinton Crime family dynasty continued the raping, pillaging, and plundering.

George Bush the Younger, or George the Retard, really ramped things up in regard to transfer of wealth and destroyer of continents.

The Obama dynasty continues to this day; continuing, uninterrupted, the criminal policies of the three previous corrupt Kings.

Trump is merely viewed as a very temporary and very irritating, usurper. There is a plan in place to solve the problem called Trump.

In the past, kings would grant the favored few, titles and vast property.

In the current environment, kings bestow multi billion dollar tech companies that actually spy for the government, to the favored few.

Same as it always was.

JibjeResearch's picture

There is a way to dominate the elites...

Know economic, politic, and world society...

Win the money back from them.. this requires hard reality learning..

I wasn't born rich.... I learned their stupid stock market game and the stupid rules...

Any people who is sinere and honest can learn it.  It's free on the internet..