The rich get richer and the poor get poorer

I read an interesting article about how Australia's wealth is shared from the Weekend Australian Financial Review (15-16 October 2011).

Australia's wealth is increasingly concentrated among the wealthy.

Statistics released Friday 14th October 2011, show the wealthiest 10% have 129 times more wealth than the least wealthiest 10%.

Between 2003/04 and 2009/10:

• The wealth held by the wealthiest 20% increased by more than $580,000 to $2.2 million (an increase of 35.8%).

• The wealth held by the least wealthiest 20% increased by $3,000 to $32,000 (or an increase of 10.3%).

The left chart below shows the wealthiest 20% held 61.8% of the wealth and the right chart below shows the wealthiest Australian's are likely to be couples aged 55-64 without children. 

My comments: The statistics above prove the catchphrase "The rich get richer and the poor get poorer" and this will hopefully fuel a national debate around inequality. For a great example about inequality, I highly recommend the documentary called "Inside Job" which exposes the shocking truth behind the global financial meltdown of 2008, which at a cost over $20 trillion, resulted in millions of people losing their jobs and homes, and nearly resulted in a global financial collapse. For example, how was Richard Fuld, CEO of Lehman Brothers, able to defend the $484 million bonus he received after leading his firm into bankruptcy.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.