While there are a few notable exceptions among the ultra-wealthy who use their fortunes for societal good, the general trend among billionaires does not always encourage confidence. They usually position themselves as saviors of society, while their substantial resources could bridge the equity gap much faster and more effectively.
For a fair society to function, there would be no billionaires.
Today, the world is witnessing an obscene inequality crisis, where wealth is concentrated in the hands of a few with power at the cost of crippling hardship and compromised well-being for the many. Billionaires can accumulate more money in 10 seconds than their employees make in one year while their workers struggle to meet the basic cost of rent and medicine. Every billionaire is a policy failure.
Wondering how? Let's find out.
The problems today are daunting. Many nations are locked in conflict. With the frequency of extreme weather events on the rise, the world is witnessing the distress of families. Many are still grappling with the economic fallout of the pandemic while contending with the escalating cost of living.
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In stark contrast, the richest are enjoying wondrous prosperity. Extreme wealth accumulation depends on various systems, like exploitative labor practices, tax breaks, and loopholes beyond people's reach.
Mirroring the fortunes of the large firms, they are equally winning big. 148 of the world’s biggest corporations raked in almost $1.8 trillion in total profits in a duration of twelve months leading up to June 2023. Large enterprises are further expected to break annual profit records in years to come.
Extreme wealth and poverty are on the rise for the first time in decades.
Today, more than ever, workers are struggling to pay their bills and support their families due to growing inflation worldwide. Corporations are further raising the prices of goods because it leads to a rise in the payouts for their shareholders. This lines the pockets of the wealthy while forcing many into poverty.
Billionaires also contribute a million times more carbon to the atmosphere than an average individual.
Individuals across the globe are facing dangerous climate change events like severe hurricanes, flash floods, and wildfires. And billionaires are adding to the growing climate change, making it even worse.
Reports have highlighted that 125 of the world’s richest billionaires invest considerably in polluting industries. They are also responsible for emitting an average of 3 million carbon tons every year. The more the investment in fossil fuels, the more they protect their use of them.
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These rising levels of global inequality are highly unacceptable, and it is time for billionaire-busting policies.
Identifying the Roots of Inequality
Wealth continues to reflect its colonial and neo-colonial roots. Reports have highlighted that globally, men own $105 trillion more wealth than women. This difference in wealth is identical to that of the US economy, which is more than four times larger.
The rise in billionaire wealth and corporate and monopoly power are deeply linked. The rich are not just the biggest beneficiaries of the global economy but also exert significant control over it. This new era of monopoly power further supercharges extreme corporate power, enabling a few to have control over the market as well as set the terms of exchange without the fear of losing any trade.
The rising trend in monopolistic corporations affects all - from wages to food, medicines, and rights. Yet, such extreme corporate power is not inevitable.
Above all else, corporate power is driven by increasing returns to already rich shareholders. Such unbridled power exploits and exaggerates gender, economic, and racial inequalities, further hastening climate breakdown. Huge corporations are exploiting their power to drive down wages and influence governments to privatize vital public services like healthcare and education.
Addressing Inequality: The 3 Rs
Every corporation has the responsibility and scope to address inequality.
Beyond this, governments and institutions need to show leadership to reduce the great divide and bridge the gap between the super-rich and the rest of the population. The 3 Rs -
- Revitalizing the state
- Reigning in corporate power
- Reinventing business
could hold the answer to these problems.
A strong, dynamic, and effective state is the best security against runaway corporate power and to correct market losses. All governments should end the for-profit provision of public goods sectors such as education and health and pursue publicly delivered goods across energy and transportation sectors.
Governments need to rein in the power of corporations. A good start can be breaking up monopolies and democratizing trade and patents. Governments can also integrate measures to restrict corporations from making payouts to rich shareholders and invest in reducing their carbon footprints. They can further enforce laws to ensure gender and racial justice are upheld, pay gaps between CEOs and ordinary workers are reduced, and taxes on the super-rich and corporations are increased radically.
Embracing democratic ownership into mainstream business would help tackle wealth inequalities and drive business decisions that highlight the concerns that actually matter. Competitive and profitable businesses do not have to be shackled by shareholder greed.
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Key Highlights
- Ongoing global challenges like geopolitical tensions, conflict, extreme weather, and economic fallout affect millions worldwide.
- Meanwhile, the world's richest and wealthy corporations are experiencing prosperity like never before.
- Addressing the growing inequality requires a systemic change to identify and address economic disparities, exploitation, and environmental concerns.
Final Thought
Today, the world is in desperate need of hope and a promise that things will eventually get better. However, it is up to the population to rally the power of the majority and compel this change, ensuring equality for all.
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