Discover more from Genuine Impact - Charting Finance, Investing & Tech
Show Me The Money
Charts on the distribution of global wealth
How much money exists on Earth?
To answer this question, we need to define the different forms of money.
M0 currency = physical currency in circulation, including coins, notes and bills ($7 trillion)
M1 currency = M0 currency + digital money held in current/checking accounts ($59 trillion)
M2 currency = M0 currency + M1 currency + digital money held in market funds, savings accounts and other ($125 trillion)
M2 currency doesn’t include the following:
Cryptocurrencies - currently valued at $1.18 trillion
Money held in the stock market - $95 trillion as of May 2021
Money in real estate - $281 trillion in 2022
Money in the derivatives market - $15.5 trillion in 2022 (using market value)
Commodities such as oil ($103.8 trillion in 2022) and gold ($12.4 trillion in 2022)
So, combining everything together (and ignoring the date discrepancies), we have an estimated $633.88 trillion. Although of course, we’ll never truly know how much money is on earth.
Show me the money
Now let’s take a look at the global distribution of this money.
It’s no surprise that the countries with the most of this wealth are the United States, China, Japan, Germany, the United Kingdom, France, and India. In fact, those seven countries combined possess 69% of the world’s wealth.
Buy and sell ETFs commission-free*, with zero ISA fees.
Designed to make investing easy
Powerful and personal automation makes investing simpler, more effective and better suited than ever before.
Focused on ETFs
Diversified, low-cost and easy to use, we love ETFs. They’re ideal for long-term, sustainable wealth generation.
Best practice investing at the core
Portfolios, not stock-picking. Long-term, not trading. Personalisation, not one-size-fits all. All made possible by sensible, smart investing features.
Which? recommended provider
We’re recognised by one of the most trusted investment platforms in the UK.
And their newest feature…. Savings Plans
Invest weekly, fortnightly or monthly
Our Savings Plans go above and beyond Direct Debits, using the latest Open Banking technology, Variable Recurring Payments, so you can instantly add funds to your account weekly, fortnightly or monthly.
Invest as little as £10 per week
Fractional investing means you can top-up as little as £10 per week in any combination of our 550+ commission-free ETFs without having to worry about unit prices (AutoInvest will be turned on and funds will be automatically invested).
Much faster than Direct Debits
The Variable Recurring Payments that power Savings Plans are much faster and more efficient than Direct Debits - allowing clients instant ability to set up and amend payments, where Direct Debits can take days.
*ETF costs apply
This is sponsored advertising content. When investing, your capital is at risk.
Why is global wealth so skewed?
The wealth gap between the rich and the poor has continued to widen in recent decades. According to Oxfam, the top 26 billionaires possess more wealth than the poorest 3.8 billion people combined.
Let that sink in - the combined wealth of just 26 people is equivalent to that of almost HALF of our global population.
The global distribution of billionaires provides insight into the broader issue of wealth distribution worldwide.
Geographically, the distribution of billionaires is highly skewed. The majority of billionaires are concentrated in North America, Europe, and Asia. In contrast, regions like Africa and parts of Latin America have fewer billionaires, who are also less wealthy.
Overall, the concentration of wealth among billionaires underscores the stark disparities in global wealth distribution.
Created by Shivani
Thanks for reading our newsletter! Make sure you’re subscribed below.
This newsletter started free, and we aim to keep it free for as long as we can. However, any support is always much appreciated - feel free to buy us a coffee using the link below <3