Is there any proof that having more millionaires per person is better for the poor?

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Welcome to Finance and Fury, The Say What Wednesday edition. Where every week we answer your questions.

Question from Anton - In your recent podcast you mention countries that have more millionaires and billionaires have more gdp and a higher quality of life. I am interested if you have research that shows the relationship of quality of life for the lower quartile of the population (by net total worth) against the number of millionaires in a Country.

Today:

  • Research on quality of life
  • More millionaires per capita helps
  • For the lower quartile also

St Vinnies CEO Sleepout on the 20th of June – Donation Link

Recap of what I said in that ep

“countries with the highest number of millionaires/billionaires per capita, have higher levels of GDP per capital and higher quality of life scores, even for the poor“

  • Per capita is important – shows output
  • Concentration of millionaires per capita
  • There really isn’t a lot published about quality of life and number of wealthy people
  • Little research showing benefits in anything
  • Took some time to compile the research

Resources will be shared to subscribers

Where would you prefer to be in the lowest quartile?

  • Where would you get a better pension income, social support, infrastructure/transport, healthcare?
  • What about an OECD country instead – Live in India, or China?
  • Where does government support come from? Taxpayers. Who pays the most in taxes? Millionaires and high-income earners.
  • The more millionaires there are per capita – the more money the Gov can collect
  • Millionaire’s money is more volatile due to deriving income from companies
  • From 2007 and 2011, the income of the bottom 10% increased by 2% while incomes at the top declined by 1%

Who has the most millionaires per capita?

  • Switzerland (8.5%), Taiwan, US, Aus, Belgium, UK, Canada, France, Norway
  • What about in regards to relative poverty lines?
What about other countries with millionaires? But not per capita
  • China, India, how do they compare?
  • How do their qualities of life compare?
How do you measure quality of life?
  • Standard of living?
  • No universally objective measurement
  • Rising global incomes? Rising disposable income?
  • What about India’s costs of living?
  • Main source of income of lower income earnings is government support

I haven’t gone over other indexes, but all point towards more millionaires per capita being a good thing

  • These statistics change all the time
  • Look at my example for perspective
  • Equality of opportunity is a good measurement of quality of life
  • Freedom index is a great indicator
  • They show the mobility of income potential

I will be compiling the research and sending it out to subscribers

If you want to get in touch, you can do so here.

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