Personal wealth of Russians has increased 16 times in 20 years

2020-06-27

Over the period from 1999 to 2020, the personal fortune of Russians grew 16 times, as it follows from a published study by the consulting company Boston Consulting Group (BCG). According to analysts, in 1999 the sum of private fortunes was 0.1 trillion dollars, in 2019 it amounted to 1.6 trillion. It is noteworthy that 55.8% of the total state belongs to multimillionaires from the super-rich segment, i.e. those who own a fortune of over $ 100 million. Another 15.8% of wealth belongs to individuals with 1 million to 100 million dollars.

A mansion of a Russian oligarch
A mansion of a Russian oligarch

The study once again showed a huge stratification in the standard of living of ordinary workers, who make up the vast majority of the country’s citizens, and a small number of capitalists in Russia. If we consider the distribution of income, we will see that 79% of the Russian populationthe average monthly income below 45,000 rubles, while 55% get less than 27,000. And the categories that are most taxed and levied are income, VAT, social payments and pensions. In total, it sums up to more than 50% of workers’ incomes. At the same time, shareholders, owners of large companies, at best, pay 13% tax, and at worst they do not pay at all. In addition, in the interests of a small group of super-rich Russians, in order to avoid the introduction of a progressive tax, the authorities raise the retirement age, and, most likely, not the last time.

For a capitalist state, such a stratification is quite natural. The rich get richer through the exploitation of the working people. The capitalists appropriate surplus value for themselves, while only a tiny fraction of the capitalist income collected in the form of taxes is used for public needs. A significant part of the expenses is made from taxes collected from the workers themselves (for example, the payment of pensions is made from funds paid by employees to a pension fund). The task of the working people is to reduce the levies imposed on them by the state. They have to struggle and raise taxes for the capitalists.

However, now in Russia the working people defend their interests poorly and they do not have mass organizations to protect their rights. This is one of the main reasons for such a gigantic stratification, including one of the reasons for raising the retirement age. If the working people fought even in the case of the most insignificant attempts to violate their interests, if in each case an attack on their interests was fought with, then the many calamities that befell and keep befalling the workers would pass them by.