The COVID-19 pandemic has made hundreds of people billionaires but also made hundreds of millions more poor.
According to a report by the NGO Oxfam published on May 22, 573 people have joined the billionaire list since 2020, bringing the total number of global billionaires to 2,668. This means that on average, a new billionaire emerges every 30 hours during the pandemic.
The report is based on data from Forbes, published ahead of the World Economic Forum (WEF) in Davos (Switzerland). This event is the gathering place of heads of state and many of the richest people in the world.
The total wealth of billionaires has increased by $3.8 trillion, or 42 percent, to $12.7 trillion during the pandemic. Much of this increase has been attributed to the stock market, as governments pumped money into the economy to reduce the financial impact of the pandemic. Most of the increase occurred during the first year of the pandemic, according to Max Lawson, director of inequality policy at Oxfam. After that, the momentum turned sideways and fell slightly.
However, COVID-19 has also increased inequality and global food prices. This could push 263 million people into extreme poverty this year, Oxfam said in a separate report last month, reversing progress made over the past several decades.
Consumers around the world are faced with rising food and energy prices. However, businesses and directors of many industries are benefiting. Food and agriculture billionaires have increased their fortunes by 45% over the past two years. About 62 food billionaires have emerged since 2020.
Meanwhile, the net worth of oil, gas and coal billionaires has increased by $53 billion, or 24%, since 2020, after adjusting for inflation.
40 new billionaires have been created in the pharmaceutical industry. The industry has benefited greatly in the fight against the pandemic and has received billions of dollars in investment in research and development.
The technology sector also produces many billionaires. Of the 10 richest people in the world, 7 come from this industry, prominently Tesla's Elon Musk, Amazon's Jeff Bezos and Microsoft's Bill Gates. These billionaires have increased their wealth by $436 billion to $934 billion over the past two years, after adjusting for inflation.
To reduce income inequality, Oxfam urges governments to tax the rich and companies. The group called for a temporary 90% tax on above-average corporate profits and a one-time wealth tax on billionaires. Taxing 2% on assets over $5 million and 5% on assets over $1 billion would generate $2.5 trillion in revenue for countries.
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