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  • What if you were as rich as the entire city of London?

  • The city's GDP is roughly $500 billion.

  • But if you combine their wealth,

  • the eight richest people in the world

  • are worth about that much.

  • They control more money than

  • the bottom half of the world's population.

  • There were about 18 million households in the world

  • with private wealth of at least $1 million in 2016.

  • Those millionaires control around

  • 45% of total private global wealth.

  • Let's break that down.

  • Households worth between $1 million and $20 million

  • accounted for 28% of the world's wealth.

  • Those worth $20 million to $100 million owned 9%.

  • And ultra-high net worth households above $100 million

  • controlled 8% of global wealth.

  • The share of overall wealth held

  • by millionaires is growing fast.

  • Millionaire households are expected to own more than

  • half of total global private wealth by 2021.

  • Their share was one-third 10 years ago.

  • Why?

  • Part of the reason is gains in the stock market,

  • where a lot of the wealthy investors put their money.

  • The United States is home to the

  • biggest number of millionaires,

  • with around 7 million households

  • owning more than $1 million in investable assets.

  • China ranks second.

  • Japan third.

  • The U.K. comes in at fourth.

  • And Canada ranks fifth.

  • When it comes to the world's wealth,

  • well, a lot of it runs in the family.

  • It's estimated that one-third of billionaires

  • inherited their wealth.

  • Investment firm UBS says that in the next two decades,

  • less than 500 people will hand over

  • more than $2 trillion to their heirs.

  • That's a sum about the size of the GDP of India,

  • a country with 1.3 billion people.

  • Here's the thing,

  • you don't have to be a billionaire or even a millionaire

  • to be among the world's wealthy.

  • To be considered in the top 1% here in the U.K.

  • a single earner with a spouse and two kids,

  • under the age of 14,

  • would need to make around $430,000 before tax.

  • But there's a key difference between income and wealth.

  • Income is what you earn,

  • like your monthly paycheck.

  • Wealth is the total measure of your financial assets,

  • like your home, your car, or those government bonds

  • you got from your great-grandmother.

  • By some measures, wealth is more

  • unequally distributed than income.

  • Recent data suggests the wealth of half of adults

  • in the world is no more than $2,222.

  • And a lot of people in this group have negative wealth,

  • meaning their debts exceed

  • the values of their assets.

  • There's plenty of disagreement over

  • evening out the world's wealth concentration.

  • But even some of the richest people in the world,

  • like Bill Gates or Warren Buffett,

  • agree that addressing solutions to wealth inequality

  • can be worth, well, a lot.

  • Hey guys, it's Elizabeth.

  • Thanks so much for watching.

  • You can watch more of our videos over here.

  • We're also taking your suggestions

  • for future CNBC Explains,

  • so leave your ideas in the comments section.

  • And while you're at it, subscribe to our channel.

  • See you later!

What if you were as rich as the entire city of London?

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A2 BEG US wealth world worth income private richest

Who owns the world's wealth? | CNBC Explains

  • 145 3
    Samuel   posted on 2018/07/24
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