✏️ Exciting News: Our website is getting a fresh new look - stay tuned! 💻

Book now

Why ist he gap between the poor and the rich getting wider?

What Dr. Dr. Money says
Elderly 95 years old woman sitting miserably at the table at home and counting remaining coins from the pension in her wallet after paying the bills.
The „haves“ will be given even more?
Those who are poor usually stay poor. Those who have enough already are getting even more. This is the current trend. But it is bad news for all of us. It sounds unfair: The wealth of Austrians is distributed even more unevenly than previously assumed. This is indicated by a study conducted by the Austrian National Bank (OeNB) in 2022. According to the study, the richest one percent of the population owns 30 to 50 percent of total assets. Or, as the proverb goes: Money breeds money. The rich get richer, the poor get poorer. This was reported in a study by the OECD, the Organization for Economic Cooperation and Development. The ten richest Austrians of 2022 have increased their wealth even faster than the “standard rich” in the past two years. While hundreds of thousands have lost their jobs due to the corona lockdowns, Austrian billionaires are on average 40% richer today than before the COVID-19 pandemic.

Two-thirds have virtually no reserves

This is in stark contrast to the fact that 70 per cent of Austria’s less well-off individuals have no savings at all. Many of them are in debt. At the global scale, things are even worse.
From 2016 to 2021, the wealth of the 62 richest people grew to $1.76 trillion. That's an increase of 44 percent over the same period in which the wealth of the world's poor declined by $1 trillion. Although the world's population increased by 400 million, the wealth of the poor fell by 41 percent.

But why is that so?

Most people earn their incomes by working, i.e. they receive wages or salaries. However, these have not risen particularly in recent years. While the super-rich were able to increase their share of global wealth at record speed during the COVID-19 pandemic, hundreds of millions of people worldwide slipped into extreme poverty. The wealthy benefit from government policies to “stimulate economic growth” by providing investment incentives. They invest their wealth carefully, for example, by investing in luxury real estate which is bought by rich people whose wealth continues to grow, or by buying shares in companies whose price is rising Between 2007 and 2011, the Gini coefficient in Austria rose from 0.269 to 0.282 per year. This means that after the 2008 economic crisis, income and wealth were more unequally distributed than before.

How are the differences measured?

Here are many approaches to measuring income and wealth inequality. The Gini coefficient is one widely used measure. If the coefficient is 0, everyone has about the same. A Gini coefficient of 1 would mean a completely unequal income distribution. It would apply in the theoretical case that a single individual receives all income in a given country, and all the others get nothing. This does not occur in reality. Countries with the greatest inequality have a Gini coefficient of 0.7 or less. Most of them are developing countries with very small elites of rich families. In Europe, Gini coefficients of between 0.2 and 0.4 are the norm. Between 2007 and 2020, the Gini coefficient in Austria increased from 0.269 to 0.282. This means that economic inequality is increasing and being accelerated by the COVID-19 pandemic.

So, what? As long as I’m doing well for myself …

Unequal distribution of income and wealth have negative effects on society at large: There is more crime and less environmental awareness, and social disparities abound. Things are just not as cosy. And unhealthier. More inequality in money distribution is linked to a greater incidence of health problems. And according to the findings of several research studies, not only the poor are affected by this, but the rich too. Little chance of change Inequality in material wealth also means unequal opportunities. Children from poor families are more likely to grow up to be poor adults than kids from wealthier households. This fact has been confirmed in many research studies. The Austrian anti-poverty network “Armutskonferenz” lobbies politicians to promote policies that combat poverty. Links
  • · Armutskonferenz. Network against Poverty and Social Exclusion The Armutskonferenz website provides in-depth information about poverty and its effects and a comprehensive database of material on the topic.
  • OECD(Organisation für wirtschaftliche Zusammenarbeit und Entwicklung) über Ungleichheit.
Why ist he gap between the poor and the rich getting wider?

What Dr. Dr. Money says

You are currently viewing a placeholder content from YouTube. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.

More Information
Unblock content Accept required service and unblock content

Subscribe to our newsletter*!

Stay up to date with our newsletter –
subscribe for new tour dates and important updates.
*only available in German
Register now

More about Geld & Gesellschaft

Foreign currency loan
Banken & Wirtschaft, Schulden

Foreign currency loan

A foreign currency loan is actually a speculative deal. The borrower hopes for interest and exchange rate advantages. But that is a risky bet.
Read now
How should I use my savings
Geld & Glück

How should I use my savings

Many young people already earn money regularly. However, this can raise the question: What do I do with my money anyway?
Read now
Account costs
Konto & Zahlung

Account costs

It’s easy to get a free account during your apprenticeship. Nevertheless, you have to be careful that you don’t end up having to pay for your account.
Read now
What does a bank do?
Banken & Wirtschaft

What does a bank do?

Money is saved, invested and spent. Banks occupy the central position in the money cycle.
Read now
What is Bitcoin?
Banken & Wirtschaft

What is Bitcoin?

Bitcoin: huge hype, almost everyone knows the name. But what exactly is virtual money and what functions does it perform?
Read now
How much do I really earn?
Ausbildung & Beruf

How much do I really earn?

Gross is not the same as net
Read now
Which insurance do i need?
Veranlagung & Vorsorge

Which insurance do i need?

If you have suffered damage, you should not be forced to bear the cost on top of it. This is what insurance companies are there for. However, you should check closely which insurance you’ll actually need.
Read now
Who sets prices?
Alles ums Geld

Who sets prices?

Why do things cost what they cost? Many articles are getting more expensive, but some may become cheaper too. Why is that so?
Read now

FLiP News abonnieren

Updates zu Ausstellung, Programm & Events

Subscribe to FLiP News

Updates on exhibition, program & events