Economists Warn $70 Trillion Wealth Transfer Will Exacerbate Global Inequality
WASHINGTON – A new report warns that a massive transfer of wealth – estimated at $70 trillion – to future generations by 2035 will substantially worsen global inequality, economists say.The findings, released by a panel of self-reliant experts chaired by Columbia University professor Joseph Stiglitz, highlight a growing concentration of wealth among the worldS richest individuals.
According to the report, between 2000 and 2024, the world’s top 1% captured 41% of all new wealth, while the bottom 50% received just 1%. This trend is fueled by compound interest and limited inheritance taxes, creating a “forward momentum” for wealth inequality and hindering social mobility, the committee stated.
Stiglitz emphasized the need for proactive intervention, recommending the G20 establish a permanent panel to “monitor trends and assess its consequences and evaluate alternative policies for addressing it, to inform governments, policymakers, and the international community.” He also noted studies demonstrating that a widening gap between rich and poor can undermine democratic institutions and contribute to the rise of populism.
The report cites groundbreaking research by Italian economist Salvatore Morelli, quantifying the scale of the impending wealth transfer. Economists warn this concentration of wealth will also negatively impact economic efficiency.
