The World's 1% Are Richer Than You Could Possibly Imagine

The World's 1% Are Richer Than You Could Possibly Imagine
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The world's richest people, better known as "the 1%", are much wealthier than it is possible to calculate, according to shocking new research.

Many of the world's richest individuals have amassed incalculable wealth as they "hide their cash in tax shelters or don't respond to questionnaires" about how wealthy they are, according to two separate studies, one by European Central bank economist Philip Vermeulen and the other by London School of Economics’ Gabriel Zucman.

Zucman's data showed that America's richest 0.1%, who have at least $20 million (£11 million) in net wealth, had at least 23.5% of the country's wealth in 2012, up from 21.5% from previous estimates.

Zucman also estimated that Europe's richest 1% have 10% of their wealth in offshore accounts, while US individuals store 4% of their assets abroad.

The amount hidden away by the global super-rich is so vast that the resulting corrections needed to income data cancel out nearly all of the progress from 1988 to 2008 in narrowing the gap between the world's rich and poor, World Bank research found.

This has led to governments losing out on billions from "nonpayment of income, investment, inheritance and estate taxes", with the US government estimated to have "lost" $36 billion (£21.4 billion), while the EU lost €75bn (£60 billion).

Accountant and tax avoidance campaigner Richard Murphy said there was "no surprise" in the findings.

"It has been my contention...for years that one of the main purposes of so called tax havens has been to provide secrecy. That’s why I call them secrecy jurisdictions," he wrote on his blog.

"Secrecy jurisdictions' secrecy has worked. That is not by chance. It has been by design. That is why the above definition has changed perception on this issue, I think. As a result the full extent of the wealth of the 1% has been hidden from view."

Nobel-prize winning economist Joseph Stiglitz told Bloomberg: “We always suspected there was some low-balling of the top 1 percent."

5 richest families in UK and how they got their wealth
Gerald Cavendish Grosvenor & family (£13bn)(01 of05)
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The Duke of Westminster, Gerald Grosvenor, is the richest property developer in the country. He and his family own around 300 acres of land and vast chunks of London's Mayfair and Belgravia.
David & Simon Reuben (£11.5bn)(02 of05)
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The brothers made their fortune investing in Russia's metals market.By 2000, they quit doing business in Russia and shifted their attention towards the UK property market and have been involved in financing major acquisitions and investments in tech firms.
The Hinduja Brothers (£10bn)(03 of05)
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Srichand and Gopichand Hinduja co-chair the Hinduja Group, a multinational conglomerate, which has interests in firms ranging from trucks and lubricant to banks and healthcare.
Charles Cadogan & family (£6.9bn)(04 of05)
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Charles, the 8th Earl of Cadogan, gets his wealth from the 90 acres he owns which stretch across Chelsea and Knightsbridge. Cadogan, who started out at merchant banker Schroder Wagg, has been classed as the second richest UK-based peer behind the Duke of Westminster.
Michael Ashley(£5.5bn)(05 of05)
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Retail entrepreneur Ashley made his millions after starting up the Sports Direct chain.He also paid £135m to buy Newcastle United football club.