I am not sure what is going on here, but I came across this story tonight that has me wondering if I have got something wrong. I will add a couple quotes from the article.
Aussies wanting to rank in the top 1 per cent of the population by wealth require $US2.8 ($A3.5 million) to qualify.
But for those wanting to aim a little lower, there are an estimated 44 Australian billionaires and almost 177,000 millionaires, with the majority based in Sydney, according to a global report from real estate agents Knight Frank.
But, there are around 25 million people in Australia, which means to be in the top one percent, there should be about 250,000 people. But if you need 3.5M AUD and there are only 177,000 that have more than one million, the math just doesn't add up.
When it comes to the ultra wealthy who have at least $US30 million ($A38 million) to their name there are almost 3200 Aussies that qualify – a figure that jumped by 10 per cent last year.
The ultra wealthy of 38+ million is around 3200 people, or about 0.000128 of the population, but of those, 1.3% are billionaires.
Sounds fishy to me. But regardless of the numbers not adding up, it does show how big the disparity is between the "one percenters", as there is a massive gap between the bottom of the one percent where "supposedly" one needs 3,5 million and firstly the ultra wealthy who are 11x up at 38M and then the 44 billionaires, who are at least 26x up on the ultra wealthy, or 285x up on the bottom of the 1%.
Poor bottom one percenters...
I think that in the future, what it means to be wealthy is going to change markedly, as the new economic tools of blockchain and digital assets start to replace the legacy. This means that there will be new classes of wealthy people and the demographics of the one percent will change. For example, in a hypothetical world of million dollar Bitcoin, how many Australians would have enough to sit in the current one percent group? Yes, I know it isn't a million dollar Bitcoin, but if Bitcoin hit 500K or even 200K - what is Ethereum doing alongside it?
What I wonder is, will how the people got their wealth matter in how they use it.
“According to the Knight Frank Attitudes Survey conducted in the last quarter of 2020, 43 per cent of the Australian ultra-high-net-worth population in Australia reported that their source of wealth was their own business, while 30 per cent reported it came from an investment portfolio.”
43 percent have their own business, but I suspect that it is nowhere near that in the crypto categories. There will be all kinds of people who from those who have developed solutions and projects - to those who just happened to win the crypto lottery by being in the right place at the right time with a little bit of capital to spend. They will also be spread around the world and in some unlikely places.
Will there be a difference in attitude of the new wealthy, will the core philosophy of the values of distribution hold, or will the conditioning of the past set in and they too will find ways to insulate themselves from the rest of society, extending their wealth by building barriers of entry.
I suspect, there will be a lot of the latter. Old habits die hard and with so much cultural emphasis put on desiring what the wealthy have, once it is obtained, chances are the new wealthy will be largely indistinguishable from the old, other than even less of them will have built up their wealth through valuable work someone was willing to pay for.
It doesn't have to be this way of course, we could be very much creating a world where what is valuable to us is far more well spread amongst us, empowering us and inspiring a new age of innovation and creativity to build a better world. It would be wonderful if that was the case, yet that is not what my experience tells me. But regardless of my experience, I am going to try to work toward a better outcome than now, as resigning myself to the position that there is no chance to change, ensures those hoarding value and power, win.
Why give up and make it easy?
There will always be one percenters. But I think what it takes to get there matters.
[ Gen1: Hive ]