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Want To Eat the Rich? Focus on the Richest 0.1%
The number of ultra-wealthy individuals is much smaller than you might think
The slogan ‘eat the rich’ has become popular amongst anti-capitalists. The slogan isn’t promoting some cannibalistic orgy on the rich — that would be weird. But it lays the finger of blame for social problems squarely on high and rising levels of inequality. The richest 1% have become the embodiment of the problem.
They live in mansions, while the rest of society struggles to pay rent (often to those in the 1%). They live jet-set lifestyles, while the rest of society is drowning in debt. They wear the finest designer clothes, while the rest of society can only glance through the shop window.
In its Global Wealth Report for 2023, Credit Suisse define the richest 1% as any adult who has assets worth over $1,152,062. They estimate the richest 1% comprises around 59 million adults worldwide. That 1% owns nearly 44.5% of global wealth. At face value, it’s understandable why so many lay the blame for social (and environmental) problems at the doorsteps of the 1%.
The thing is, this perception isn’t entirely accurate. When you dig a little deeper it appears that if we are to eat the rich to help distribute wealth then we don’t need to eat as many people as you would think. Rather than the 1%, the problem lies with the richest 0.1%.
To find out why we need to think about what the average 1 percenter looks like. Let’s take the UK as an example. To be in the top 1% of earners you need to be making £120,000 ($153,000) a year. Meanwhile, the number of homes worth over £1 million ($1,270,000) is 1 in 40 properties, which is 2.5% of all homes, or 730,000 properties. What do house prices have to do with incomes?
Imagine a scenario where someone earning £140,000 wants to buy a home. Let’s also imagine they have a large deposit of £200,000. To buy a home worth £1 million they would need the bank to lend them £800,000. But even if the person is lucky enough for the bank to agree to a mortgage five times the person's income (an unlikely scenario with tighter controls on lending), the maximum loan value is £700,000. So the maximum value of the home they can afford is £900,000. And that’s before adding any costs…
