False sense of prosperity and Global wealth disparity

While it may appear that the world has become richer over the past century, the reality is that the global wealth disparity has significantly increased, leaving most people with a smaller share of the pie.

Misleading Numbers on Global wealth disparity

The collective GDP of the planet increased from a recorded $1.32 trillion in 1960 to a high of $61.38 trillion in 2008 before the financial and economic crisis. This 40-fold increase might suggest that people today are 40 times richer than their grandparents. However, this assumption is misleading due to the growing disparity in wealth distribution.

Today, if you make $60,000 per year, you represent the top 9% (roughly 689 million people) of the planet. If you earn $125,000 per year, you are part of an elite minority (107,000 people) and represent the top 1% of the world (roughly 76 million people). These figures highlight the massive gap between the wealthy and the rest of the world’s population.

Capitalism vs. Eastern Philosophy

The Western capitalistic-consumption based wealth formula suggests that to be rich, one must consume more every year. This mentality contrasts with Eastern (Sino and Desi) philosophies, which emphasize the importance of savings. The world’s increasing consumption, from $1.32 trillion per year in the 1960s to around $60 trillion today, demonstrates that the planet is becoming poorer by $60 trillion every year.

The Impending Global Meltdown

The vast wealth disparity begs the question: how long can this imbalance survive before a global meltdown occurs? One possibility is that the meltdown will happen when the majority of the world’s population (minus the top 1% earning $125,000) realizes they have been exploited by the wealthiest individuals.

With the planet’s resources dwindling, the consequences could be dire. As resources run out, the vast majority of the population may turn against the wealthy minority, leading to chaos and further devastation.

Data Source: IMF, World Bank, and Wikipedia