A Knight Frank study reveals that securing a place in the United States’ top 1% now requires at least $5.8 million, marking a nearly 15% increase from the previous year.
Monaco leads globally with a $12.8 million entry point, a 3.2% increase from last year.
Luxemburg and Switzerland also set the bar high, requiring over $8 million, Knight Frank’s 2024 Wealth Report indicates.
This data highlights the growing wealth gap driven by market gains in the U.S. and other developed nations.
For perspective, Monaco’s per capita GDP is more than 900 times that of Burundi, as per World Bank figures.
Recent events, like Russia’s 2022 Ukraine invasion, strained a global economy still rebounding from the pandemic.
This escalated energy and food costs. While affecting everyone, poorer countries felt the brunt due to their dependence on imports, leading to higher loan expenses.
Yet, the economic turmoil didn’t impact all.
The planet’s richest 500 people grew their wealth by $1.5 trillion last year, with Tesla’s Elon Musk leading the gains, Bloomberg’s Billionaires Index shows.
Knight Frank’s findings stress the stark wealth distribution differences globally.
The expectation is for policies to increasingly address wealth’s location, distribution, and how to effectively tax and foster its growth, bridging the economic disparity gap.
Background
Today, the rapid pace of technological progress and globalization has led to unparalleled wealth for the top 1%, presenting a chance for innovative policy-making.
Governments are exploring new tax strategies, like digital taxes and global minimum taxes, to promote fairer wealth distribution and are focusing on policies that benefit everyone, not just the rich.