Oxfam report: Gap between rich and poor is growing rapidly

One in ten people in the world is starving, according to a report by Oxfam. At the same time, many companies have benefited enormously from the recent crises: 95 food and energy companies more than doubled their profits in 2022.

For the first time in a quarter of a century, extreme poverty and extreme wealth are on the rise, according to Oxfam. Corporations and their owners have also benefited from various crises, according to the “Survival of the Richest” report, which the aid organization is presenting today at the World Economic Forum in Davos, Switzerland.

Wealth of billionaires ‘skyrocketed’

During the corona pandemic, i.e. since 2020, a total of 26 trillion US dollars has fallen to the richest percent of humanity – and 16 trillion US dollars to the remaining 99 percent.

In the past year, the wealth of billionaires has again “skyrocketed”, in particular due to “rapid profits from food and energy companies”. Of these, 95 companies more than doubled their profits last year.

In Germany, 81 percent of the total wealth growth generated in Germany between 2020 and 2021 went to the richest percent of the population. The remaining 99 percent of citizens accounted for only 19 percent of the increase in wealth.

According to Oxfam, at least 1.7 billion workers live in countries where inflation is greater than wage growth. About every tenth person on earth is starving.

Governments want to cut investment in education

60 percent of the starving world population are women and girls. At the same time, three-quarters of all governments plan to cut their spending in the public sector, such as in education and health. According to Oxfam, investments and a strengthening of women’s rights are needed here in particular. The corresponding funds in development cooperation would also have to be increased.

Against this background, the organization called on governments to counteract this trend with taxes on excess profits and high wealth. The resulting income would have to be invested in the expansion of social security, education and health in order to combat inequality and poverty.

Oxfam called for an excess profit tax of at least 50 percent for corporations. “The previous plans for a levy on random prizes fall short,” it says.