When gather for the World Economic Forum, Oxfam (Oxford Committee for Famine Relief) report indicates the 1% wealthiest person own fortunate more than those of bottom 70%. It’s said that the wealthiest two Australians – Gina Rinehart and Harry Triguboff own more than poorest 20% of the country’s people. Even wrap-ups of super stars, fashion weeks and the like occupied most media, but this kind of news will also be attractive. Although it could not capture hearts of girls like black little dresses, blouses, coats, berets, wrist watches, etc., but, to a certain extent, such news has something to do with our economy and life of most people. Such statistics were published when many political and business celebrities sit together for the World Economic Forum in Switzerland each year.
Dr Helen Szoke, the chief executive of Australian Oxfam, voiced that, in one sense, the income disparity between the rich and the poor reflected a trend of the world. The degree of inequality incomes are more terrible and greater than we have expected. It’s obvious that most fortunate is owned by only a few people. The richest eight people like Bill Gates and Zuckerberg hold more than a half wealth in the world.
In spite of the rich’s generosity, the matter itself that many wealth is held by few people also reflected defects in economic system. One suggest that more strict laws should be introduced, and all Australia-based cross-border corporate shall public their incomes, employees, profits, taxes, etc.
Considering debt recovery’s effects on most vulnerable people, the easing and ending of the “extreme concentration of fortunate” is important. At the same time, the report from Oxfam also reveals that the financial conditions of bottom 50% is greatly worse off than we have expected. Debt is more than their assets.
The research indicates that poor people hold little or even zero combined net asset. Give all above existing problems, Szoke argues that the federal reserve and government should form or introduce tougher laws, forcing multinational companies to public their incomes, taxes and the like more transparently.
Let’s know more about some details development of Rinehart’s company. The Hancock Prospecting Pty Limited was handed over to her hand after her father’s death. All companies of the group were private. The main incomes of her company and groups come from mining activities like exploration and accumulation. Recently, Rinehart devoted herself to undeveloped deposits, raising capital through the form of joint venture.
Rinehart share half profits produced by the Hope Downs mine, which is run by Rin Tinto, producing iron ore about 30m ton. Many founders of companies at home and abroad hand companies to their sons or daughters through trust rather than give companies to them directly. Original purposes of the plan is that hoping established enterprises and accumulated wealth are benefit to their descendants. However, it is discovered that trust is just not panaceas of family firm’s carrying forward. On the contrary, many owners of family firms ignored the side effects of trust.