As global elites arrive in Davos for the annual World Economic Forum, the global advocacy group Oxfam reported that billionaires' wealth increased three times faster in 2024 than the previous year, and it warned of an emerging “aristocratic oligarchy” with enormous political clout, primed to profit from Donald Trump’s presidency of the United States.
"Trillions are being gifted in inheritance, creating a new aristocratic oligarchy that has immense power in our politics and our economy," Oxfam International said in its traditional annual pre-Davos report on the super rich.
"The crown jewel of this oligarchy is a billionaire president, backed and bought by the world's richest man Elon Musk, running the world's largest economy," said the charity's executive director Amitabh Behar, referring to the Tesla and X owner who helped to bankroll Trump's campaign.
Musk and the world's two other richest men - Amazon founder Jeff Bezos and Mark Zuckerberg, whose Meta empire owns Facebook, Instagram and WhatsApp - will be at Trump’s inauguration in Washington Monday, when the World Economic forum kicks off at Davos in the Swiss Alps.
None are expected be among the 3,000 attendees at Davos, where Trump - who attended the forum twice during his first term - will make an online appearance later in the week.
Calls to 'dismantle the new aristocracy'
In its warnings, Oxfam echoed similar language used last week by outgoing US President Joe Biden, who called out an extremely wealthy oligarchy that "literally threatens our entire democracy".
The group called on governments to “dismantle the new aristocracy” through taxes on the richest and the breakups of monopolies, caps on CEO pay, and the regulation of corporations to ensure they pay “living wages” to workers.
Many earned fortunes through investments in 2024, as top tech companies and stock market indexes like the S&P 500 had strong performances, as well as the price of gold and cryptocurrencies like Bitcoin.
Billionaires on the rise
Oxfam’s report, titled "Takers Not Makers", found that billionaire wealth grew three times faster than in 2023, with each billionaire seeing their fortune increase by €1.941 million per day on average.
At least four new billionaires emerged each week in 2024, reaching a total of 2,769.
Three fifths of billionaire wealth comes from inheritance, monopoly power or “crony connections,” the report said, adding that Trump's tax cut plans will only make them richer.
The group also said that five trillionaires will emerge within a decade, increasing its forecast from last year which said only one trillionaire would appear during that time.
(with AFP, AP)
