The Irish Times view on wealth inequality: the rich are getting a lot richer
The annual analysis of global billionaires by Oxfam comes up with the remarkable figures that the 12 richest people own more wealth than half the world’s population. Conducted ahead of the Davos summit, the report underlines the extraordinary concentration of wealth internationally which has characterised recent years and been one factor which has triggered populism.In Ireland, the top 11 billionaires own over €43 billion, which is as much as around 85 per cent of the adult population. Many of the people on the Irish list are passport holders who reside overseas.Oxfam argues that wealth is self-perpetuating as those who hold it inevitably have more political and policy influence. And they have a point. The shortcomings of the theory of “trickle-down” economics – that the bulk of the population eventually gains from growth – are clear, notably in the US where the billionaire class now has a friend in the White House.Better taxation of wealth is one of the key equality measures. This can work at a national level. But the issue with the billionaire class – as with multinational companies – is that taxation is only effective if coordinated internationally. There have been some useful steps towards international information-sharing among tax authorities, but it is still too easy for the very wealthiest to shelter large parts of their income and wealth from tax.READ MOREA Knight of the Seven Kingdoms: Cheerier than Game of Thrones and brimming with Irish talentWho were the Dublin rioters? What 82 prosecutions tell us about the unrestFirst Look: Inside the new-look Bang restaurant from the duo behind Kicky’sThe big question: Is Ireland willing to accept lower economic growth to cut immigration?Many give some money back via charitable donations. But it would be much better if they paid tax on the same basis as the rest of the population. The last year – and in particular what is happening in the US – shows how the super-rich can increase their influence in an authoritarian administration. Oxfam puts its as a choice between “oligarchy and democracy.” And in the US, the home of the largest number of global billionaires, it is clear which side is winning. By controlling important information channels, the billionaire class now have another bauble to offer governments. For now, there is no sign of any restraint on their ever-growing wealth.
