Where Do The Richest People Live and How Does That Affect The Rest Of Us
A recent study from the University of Oxford has revealed where the richest people live. The study also revealed that since 2005 more and more insanely wealthy people come from developing countries, the majority (almost 38%) are from the United States. In 2012, Japan ranked second with a share of 8.5 per cent, followed by Germany (5.8 per cent), France (5.4 per cent) and Brazil (5.3 per cent).
The UK ranked sixth with 4.7 per cent of all global ‘one per centers’.
Professor Sudhir Anand, from the Department of Economics at the University of Oxford, said:
“The turning point for the emerging economies appears to have been around 2005. That is when its citizens increasingly started to enter the ranks of the global rich. This trend was undoubtedly reinforced by the global financial crisis in 2008, which slowed growth in the advanced economies.
But developing countries were already beginning to catch up before then. As long as emerging economies continue to grow faster, which seems likely for the near future, the trend will continue with developing countries comprising an increasing share of the global top one per cent.”
To a degree, the map above can be correlated with the Gini Coefficient, which itself indicates the wealth distribution within a country. The Gini Index is the most commonly used measure of inequality. The coefficient varies between 0, which reflects complete equality and 1, which indicates complete inequality (one person has all the income or consumption, all others have none).
A Gini index value above 50 is considered high; countries like the Seychelles, Brazil, Chile, Botswana and Central America countries can be found in this category. A Gini index value of 30 or above is considered medium; countries like Vietnam, Mexico, Poland, USA, Russia, and Venezuela can be found in this category. A Gini index value lower than 30 is considered low; countries like Austria, Afghanistan, and Denmark can be found in this category.
We have to realize that money hoarding is as bad as a struggling economy, since in the end, money is finite. And while the richest people out there have more than the overwhelming majority, the rest of us have to scrape by with what’s left.