{"id":17827,"date":"2021-02-08T14:14:20","date_gmt":"2021-02-08T03:14:20","guid":{"rendered":"http:\/\/www.socialpolicyconnections.com.au\/?p=17827"},"modified":"2021-02-08T15:19:49","modified_gmt":"2021-02-08T04:19:49","slug":"we-are-the-1-the-wealth-of-many-australians-puts-them-in-an-elite-club-wrecking-the-planet","status":"publish","type":"post","link":"https:\/\/www.socialpolicyconnections.com.au\/?p=17827","title":{"rendered":"We are the 1%: the wealth of many Australians puts them in an elite club wrecking the planet."},"content":{"rendered":"\n

Alex Baumann<\/a> Western Sydney University<\/a>.
Samuel Alexander<\/a> University of Melbourne<\/a>. <\/h3>\n\n\n\n

Among the many hard truths exposed by COVID-19 is the huge disparity between the world\u2019s rich and poor. As economies went into freefall, the world\u2019s billionaires increased<\/a> their already huge fortunes by 27.5%. And as many ordinary people lost their jobs and fell into poverty, The Guardian reported \u201cthe 1% are coping\u201d by taking private jets<\/a> to their luxury retreats.<\/p>\n\n\n\n

Such perverse affluence further fuelled criticism of the so-called 1%, which has long been the standard rhetoric of the political Left<\/a>.<\/p>\n\n\n\n

In 2011, Occupy Wall Street protesters called out growing economic inequality by proclaiming<\/a>: \u201cWe are the 99%!\u201d. And an Oxfam report<\/a> in September last year lamented how the richest 1% of the world\u2019s population are responsible for more than twice as much carbon pollution as the poorest half of humanity.<\/p>\n\n\n\n

But you might be surprised to find this 1% doesn\u2019t just comprise the super-rich. It may include you, or people you know. And this fact has big implications for social justice and planetary survival.<\/p>\n\n\n\n

\"People
Many everyday Australians have a net worth that puts them in the world\u2019s richest 1%<\/em>. Shutterstock.<\/figcaption><\/figure><\/div>\n\n\n\n

Look in the mirror<\/h4>\n\n\n\n

When you hear references to the 1%, you might think of billionaires such as Amazon\u2019s Jeff Bezos<\/a> or Tesla founder Elon Musk<\/a>. However, as of October last year there were 2,189 billionaires worldwide<\/a> \u2014 a minuscule proportion of the 7.8 billion people on Earth. So obviously, you don\u2019t have to be a billionaire to join this global elite.<\/p>\n\n\n\n

So how rich do you have to be? Well, Credit Suisse\u2019s Global Wealth Report<\/a> in October last year showed an individual net worth of US$1 million (A$1,295,825) – combined income, investments and personal assets \u2014 will make you among the world\u2019s 1% richest people.<\/p>\n\n\n\n

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Five ways coronavirus is deepening global inequality<\/a>.<\/h5>\n\n\n\n
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The latest official data shows the average Australian household has a net worth of A$1,022,200<\/a>. Australia\u2019s richest 20% of households \u2013 about two million of them \u2013 have an average net worth of A$3.2 million<\/a>. Even if those households comprised two income-earning adults, their net worth equally divided would put many in the top 1% of global wealth holders.<\/p>\n\n\n\n

A net wealth of US$109,430 (A$147,038) puts you among the world\u2019s richest 10%<\/a>. Half of Australia\u2019s households have a net worth of A$558,900<\/a> or more.<\/p>\n\n\n\n

\"Aerial
The net worth of many Australians puts them in the global elite<\/em>. Shutterstock.<\/figcaption><\/figure><\/div>\n\n\n\n

What does all this mean for the planet?<\/h4>\n\n\n\n

It\u2019s true the per capita emissions of the super-rich are likely to be far greater than others in the top 1%. But this doesn\u2019t negate the uncomfortable fact Australians are among a fraction of the global population monopolising global wealth<\/a>. This group causes the vast bulk of the world\u2019s climate damage<\/a>.<\/p>\n\n\n\n

A 2020 Oxfam report shows the world\u2019s richest 10% produce a staggering 52% of total carbon emissions<\/a>. Consistent with this, a 2020 University of Leeds study<\/a> found richer households around the world tend to spend their extra money on energy-intensive products, such as package holidays and car fuel. The UN\u2019s 2020 Emission Gap Report further confirmed this<\/a>, finding the top 10% use around 75% of all aviation energy and 45% of all land transport energy.<\/p>\n\n\n\n

It\u2019s clear that wealth, and its consequent energy privilege, is neither socially just nor ecologically sustainable.<\/p>\n\n\n\n

\"Man
Global wealth disparity is not just or sustainable. <\/em>Shutterstock.<\/figcaption><\/figure><\/div>\n\n\n\n

A potential solution<\/h4>\n\n\n\n

Much attention and many headlines are devoted to the unethical wealth<\/a> of billionaires. And while the criticism is justified, it distracts from a broader wealth problem \u2014 including our own.<\/p>\n\n\n\n

We should note here, one can have an income that\u2019s large compared to the global average, and still experience significant economic hardship<\/a>. For instance in Australia, the housing costs of more than one million households exceed 30% of total income \u2013 the commonly used benchmark<\/a> for housing affordability.<\/p>\n\n\n\n

Here lies a central challenge. Even if we wanted to reduce our wealth, the enormous cost<\/a> of keeping a roof over our head prevents us from doing so. Servicing a mortgage or paying rent is one of our biggest financial obligations<\/a>, and a key driver in the pursuit of wealth.<\/p>\n\n\n\n

But as we\u2019ve shown above, as personal wealth grows, so too does environmental devastation. The rule even applies to the lowest paid, who are working just to pay the rent. The industries they rely on, such as retail<\/a>, tourism<\/a> and hospitality<\/a>, are themselves associated with environmental damage.<\/p>\n\n\n\n

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Coronavirus shows housing costs leave many insecure. Tackling that can help solve an even bigger crisis<\/a>.<\/h5>\n\n\n\n
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Existing economic and social structures<\/a> mean stepping off this wealth-creating treadmill is almost impossible. However as we\u2019ve written before<\/a>, people can be liberated from their reliance on economic growth when land – the very foundation of our security – is not commodified.<\/p>\n\n\n\n

For social justice and ecological survival, we must urgently experiment with new land and housing strategies<\/a>, to make possible a lifestyle of reduced wealth and consumption and increased self-sufficiency.<\/p>\n\n\n\n

This might include urban commons, such as the R-Urban project in Paris, where several hundred people co-manage land that includes a small farm for collective use, a recycling plant and cooperative eco-housing.<\/p>\n\n\n\n

\"\"
The R-Urban project in Paris, which includes a small farm.<\/em> flickr.<\/figcaption><\/figure><\/div>\n\n\n\n

Under a new land strategy, other ways of conserving resources could be deployed. One such example, developed by Australian academic Ted Trainer<\/a>, involves cutting our earnings sharply – with paid work for only two days in a week. For the rest of the working week, we would tend to community food gardens, network and share many things we currently consume individually.<\/p>\n\n\n\n

Such a way of living could help us re-evaluate the amount of wealth we need to live well.<\/p>\n\n\n\n

The social and ecological challenges the world faces cannot be exaggerated. New thinking and creativity is needed. And the first step in this journey is taking an honest look at whether our own wealth and consumption habits are contributing to the problem.<\/p>\n\n\n\n

\n\n\n\n
The ‘simple life’ manifesto, & how it could save us<\/a>.<\/h5>\n\n\n\n
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Clarification: this article has been updated to state that, for Australia\u2019s richest 20% of households, the average net worth of two income-earning adults would put many in the top 1% of global wealth holders.<\/em><\/p>\n\n\n\n

Alex Bauman<\/a>n Casual Academic,School of Social Sciences & Psychology Western Sydney University<\/a>.
Samuel Alexander<\/a> Research fellow Melbourne Sustainable Society Institute University of Melbourne<\/a>.<\/p>\n\n\n\n

This article is republished from The Conversation<\/a><\/em> under a Creative Commons license. Read the original article<\/a>.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Photo Shutterstock.<\/p>\n","protected":false},"excerpt":{"rendered":"

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