Regular readers know that I am fairly positive that there may be secret trillionaires out there. It is a fact that somewhere between $30-300 trillion dollars is hidden in offshore accounts, which means corporations and individuals are hiding vast sums of money and not paying taxes on any of it, not to mention the conniption fit people would have if they ever found out. Doesn't it strike anyone else odd that the richest people have only estimates of their huge sums of money? If you have that much, you can hide a lot more as well. The richest people among us are mostly likely people you've never heard of; people who intentionally keep a low profile. And a new study shows, I am most likely right.
This is from Bloomberg.com:
Research conducted separately by European Central Bank economist Philip Vermeulen and London School of Economics’ Gabriel Zucman show the wealth of the super-affluent -- hidden by tax shelters and nonresponse to questionnaires -- is undercounted. Correcting for similar lapses in income data almost erases progress made from 1988 to 2008 in narrowing the gap between the world’s rich and poor, World Bank research found.
“We always suspected there was some low-balling of the top 1 percent,” said Joseph Stiglitz, a Nobel-prize winning economist and author of “The Price of Inequality. “There’s a growing sense that our system is rigged and unfair.”
No shit Sherlock. The fact it has taken the intellectual class this long to catch up here is rather mind blowing. I swear, lately whenever I see people, I can tell we're descendants of monkeys. We haven't evolved as much as we would like to think. Check out the chart below with their findings:
Jeffrey Hollender, who is among the wealthiest 1 percent in the U.S., isn’t surprised the world’s richest have even more than currently estimated.
“The more money that you have, the easier it becomes to hide that and avoid taxes,” said Hollender, 59, co-founder of cleaning and personal-care products company Seventh Generation Inc. He is a member of Responsible Wealth, a Boston-based network that advocates for economic fairness.
The measurement of assets for Europe’s super rich could be even faultier, according to Zucman. About 10 percent of their wealth is in offshore accounts compared with 4 percent in the U.S., he estimates in a May paper. Very rich people also have wealth in foundations and holding companies that make calculations difficult, he said.
It is possible that some European countries, “like the U.K. in particular,” are “almost -- or even more -- unequal than the U.S.,” Zucman said, a contrast with current data that show they are more wealth-equal.
Notice that the UK may have even worse income inequality, which makes sense as England is the only other industrialized, Western country to have a more limited upward mobility plan than the US. Yeah, we're second from last. Just like Texas in just about everything education oriented.