Pandemic Saw Billionaires' Wealth Increase By 42%: Oxfam Report

A new billionaire was created every 30 hours during the COVID-19 pandemic according to a report by Oxfam International.

In their report titled 'Profiting from Pain' that it released at the World Economic Forum's 2022 Davos Agenda, Oxfam said that billionaires have seen their wealth increase as much during the pandemic than it did in 23 years.

At the same time, food and energy inflation caused by the pandemic and the Ukrainian war will reportedly push 263 million more people into extreme poverty in 2022 increasing the number to 860 million people.

According to Oxfam, 573 people became new billionaires since 2020 taking the total to 2,668 billionaires. The total wealth of billionaires increased $3.78 trillion (42%) to $12.7 trillion which equates to 13.9% of global gross domestic product (GDP).

In contrast, the report states that the pandemic resulted in 99% of the global population witnessing their income falling with 125 million full-time jobs lost in 2021.

Not only has the pandemic driven up income inequality, it has also seen the gender pay gap widen and see 13 million women unemployed in 2021.

Oxfam has called on governments to implement progressive taxation regimes to tackled growing inequality.

Among the measures proposed by Oxfam is a one-off wealth tax, a pandemic excess profits tax on the world's largest corporations and a permanent wealth tax on the 1%.

According to Oxfam's research, a progressive net wealth tax of 2% on personal wealth above $5m, 3% for wealth above $50m and 5% for wealth above $1bn, could generate $2.52 trillion worldwide. The amount raised can "lift 2.3 billion people out of poverty, make enough COVID-19 vaccines for the world, and deliver universal healthcare and social protection for everyone living in low- and lower-middle-income countries (3.6 billion people)".