A United Nations University study revealed the following information. “The richest 2% of adults in the world own more than half of global household wealth according to a path-breaking study released today by the Helsinki-based World Institute for Development Economics Research of the United Nations University (UNU-WIDER).”
“The most comprehensive study of personal wealth ever undertaken also reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. In contrast, the bottom half of the world adult population owned barely 1% of global wealth.”
These facts do not vary significantly in the United States. Professor G. William Domhoff, of University of California at Santa Cruz has posted his study on the internet. His conclusions are remarkably similar to Pareto’s 80-20 Principle. In 2001 20% of the population owned 84.4% of the nation’s wealth. The top 1% owned 33.4%. Similar to Pareto’s theory 80% of the population owned a mere 15.5%.
Living in Los Angeles most of my life has enabled me to see both the very rich in Beverly Hills and the homeless on Skid Row. My wife was is in shock as I walk with her from the Central Library to the famous Grand Central Market. She saw all those drunks and homeless lying next to building walls and was astonished by my cavalier attitude. Why wasn’t she shocked by the palace my sister built in Calabasas?
The inspiration for the column is Business Week’s December 8, 2008 publication of THE 50 TOP AMERICAN PHILANTHROPISTS. It was nice to learn about the money that these people had contributed to society. However, the listing in the published version of this article also provided the current net worth of each person and the “Lifetime giving as % of net worth.” What shock that data was! Warren Buffet was ranked number 1 with a current net worth of $50 billion. He has given 82% of net worth.
Unfortunately too many of these very wealthy people believe that leaving their multi billion dollar estates to the family is the right thing to do. How many billions do they need to live comfortably? Three good examples are David Koch who has a net worth estimated at $19 billion. He has donated $623 million or 3% of his wealth. Michael Bloomberg, mayor of New York City, with a $20 billion estate has contributed 8% of his wealth. What will he do with the remaining $18 ½ billion? Kirk Kerkorian with $11.2 billion has contributed 9% to humanitarian causes.
The list does indicate four people who have donated amounts significantly greater than their current total wealth. The leading individual is Veronica Atkins, widow of Dr. Robert Atkins, has donated $882 million and still has an estate of $60 million. That is enough money to support her and many of her children and great grand children in a very comfortable style.
Perhaps there ought to be a limit on wealth. At least there could be requirements on the use of the wealth of billionaires. The problem is who could draw those requirements?
Coast Contact 