US Wealth Disparity Grows as Top 1% Entry Requirement Rises to $5.8 Million

US Wealth Disparity Grows as Top 1% Entry Requirement Rises to $5.8 Million

VoM News Desk | February 28, 2024 | 10:27 AM IST | United States of America | Follow on Google News

US Wealth Disparity Grows as Top 1% Entry Requirement Rises to $5.8 Million

US Wealth Disparity Grows as Top 1% Entry Requirement Rises to $5.8 Million

The gap between rich and poor nations is widening as rebounding markets in the US and other Western countries shape economic landscapes.

In the US, entering the top 1% of wealth has become even more challenging, requiring a minimum of $5.8 million, a notable 15% increase in the past 12 months, according to research by Knight Frank. Monaco maintains its position as the country with the highest entry threshold at $12.8 million, indicating a 3.2% rise from the previous year. Luxembourg and Switzerland follow closely, with entry requirements exceeding $8 million, as revealed in Knight Frank’s 2024 Wealth Report.

The report highlights the stark contrasts in wealth distribution globally, emphasizing how the economic recovery in Western nations is contributing to the wealth divide. Monaco, with a GDP per person of approximately $240,000, stands in stark contrast to East Africa’s Burundi, where the GDP per person is over 900 times smaller, according to World Bank data.

The global economy faced challenges with Russia’s 2022 invasion of Ukraine, impacting the post-pandemic recovery and causing surges in energy and food prices.

This had widespread repercussions, particularly for poorer nations heavily reliant on imports, as increased borrowing costs compounded their economic struggles.

Despite these challenges, the world’s 500 richest individuals saw their combined fortunes increase by $1.5 trillion in the past year, with Tesla Inc. CEO Elon Musk leading the pack in wealth accumulation, according to the Bloomberg Billionaires Index.

Knight Frank’s report emphasizes the significant disparities in wealth distribution between countries, prompting a call for increased policy focus on wealth location, distribution, taxation, and strategies to foster economic growth.

VoM News Desk

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