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Sunday, March 15, 2026

Multiverse

From Wikipedia, the free encyclopedia

The multiverse is the hypothetical set of all universes. Together, these universes are presumed to comprise everything that exists: the entirety of space, time, matter, energy, information, and the physical laws and constants that describe them. The different universes within the multiverse are called "parallel universes", "flat universes", "other universes", "alternate universes", "multiple universes", "plane universes", "parent and child universes", "many universes", or "many worlds". One common assumption is that the multiverse is a "patchwork quilt of separate universes all bound by the same laws of physics."

The concept of multiple universes, or a multiverse, has been discussed throughout history. It has evolved and has been debated in various fields, including cosmology, physics, and philosophy. Some physicists have argued that the multiverse is a philosophical notion rather than a scientific hypothesis, as it cannot be empirically falsified. In recent years, there have been proponents and skeptics of multiverse theories within the physics community. Although some scientists have analyzed data in search of evidence for other universes, no statistically significant evidence has been found. Critics argue that the multiverse concept lacks testability and falsifiability, which are essential for scientific inquiry, and that it raises unresolved metaphysical issues.

Max Tegmark and Brian Greene have proposed different classification schemes for multiverses and universes. Tegmark's four-level classification consists of Level I: an extension of our universe, Level II: universes with different physical constants, Level III: many-worlds interpretation of quantum mechanics, and Level IV: ultimate ensemble. Brian Greene's nine types of multiverses include quilted, inflationary, brane, cyclic, landscape, quantum, holographic, simulated, and ultimate. The ideas explore various dimensions of space, physical laws, and mathematical structures to explain the existence and interactions of multiple universes. Some other multiverse concepts include twin-world models, cyclic theories, M-theory, and black-hole cosmology.

The anthropic principle suggests that the existence of a multitude of universes, each with different physical laws, could explain the asserted appearance of fine-tuning of our own universe for conscious life. The weak anthropic principle posits that we exist in one of the few universes that support life. Debates around Occam's razor and the simplicity of the multiverse versus a single universe arise, with proponents like Max Tegmark arguing that the multiverse is simpler and more elegant. The many-worlds interpretation of quantum mechanics and modal realism, the belief that all possible worlds exist and are as real as our world, are also subjects of debate in the context of the anthropic principle.

History of the concept

According to some, the idea of infinite worlds was first suggested by the pre-Socratic Greek philosopher Anaximander in the sixth century BCE. However, there is debate as to whether he believed in multiple worlds, and if he did, whether those worlds were co-existent or successive.

The first figures to whom historians can definitively attribute the concept of innumerable worlds are the Ancient Greek Atomists, beginning with Leucippus and Democritus in the 5th century BCE, followed by Epicurus (341–270 BCE) and the Roman Epicurean Lucretius (1st century BCE). In the third century BCE, the philosopher Chrysippus suggested that the world eternally expired and regenerated, effectively suggesting the existence of multiple universes across time. The concept of multiple universes became more defined in the Middle Ages. In the Renaissance, Giordano Bruno (1548–1600) expressed the concept of infinite worlds.

The American philosopher and psychologist William James used the term "multiverse" in 1895, but in a different context.

The concept first appeared in the modern scientific context in the course of the debate between Boltzmann and Zermelo in 1895.

In Dublin in 1952, Erwin Schrödinger gave a lecture in which he jocularly warned his audience that what he was about to say might "seem lunatic". He said that when his equations seemed to describe several different histories, these were "not alternatives, but all really happen simultaneously". This sort of duality is called "superposition".

Search for evidence

In the 1990s, after recent works of fiction about the concept gained popularity, scientific discussions about the multiverse and journal articles about it gained prominence.

Around 2010, scientists such as Stephen M. Feeney analyzed Wilkinson Microwave Anisotropy Probe (WMAP) data and claimed to find evidence suggesting that this universe collided with other (parallel) universes in the distant past. However, a more thorough analysis of data from the WMAP and from the Planck satellite, which has a resolution three times higher than WMAP, did not reveal any statistically significant evidence of such a bubble universe collision. In addition, there was no evidence of any gravitational pull of other universes on ours.

In 2015, an astrophysicist may have found evidence of alternate or parallel universes by looking back in time to a time immediately after the Big Bang, although it is still a matter of debate among physicists. Dr. Ranga-Ram Chary, after analyzing the cosmic radiation spectrum, found a signal 4,500 times brighter than it should have been, based on the number of protons and electrons scientists believe existed in the very early universe. This signal—an emission line that arose from the formation of atoms during the era of recombination—is more consistent with a universe whose ratio of matter particles to photons is about 65 times greater than our own. There is a 30% chance that this signal is noise, and not really a signal at all; however, it is also possible that it exists because a parallel universe dumped some of its matter particles into our universe. If additional protons and electrons had been added to our universe during recombination, more atoms would have formed, more photons would have been emitted during their formation, and the signature line that arose from all of these emissions would be greatly enhanced. Chary said:

Many other regions beyond our observable universe would exist with each such region governed by a different set of physical parameters than the ones we have measured for our universe.

— Ranga-Ram Chary, USA Today

Chary also noted:

Unusual claims like evidence for alternate universes require a very high burden of proof.

— Ranga-Ram Chary, "Universe Today"

The signature that Chary has isolated may be a consequence of incoming light from distant galaxies, or even from clouds of dust surrounding our own galaxy.

Proponents and skeptics

Modern proponents of one or more of the multiverse hypotheses include Lee SmolinDon PageBrian Greene, Max TegmarkAlan GuthAndrei LindeMichio KakuDavid DeutschLeonard SusskindAlexander VilenkinYasunori NomuraRaj PathriaLaura Mersini-HoughtonNeil deGrasse TysonSean Carroll and Stephen Hawking.

Scientists who are generally skeptical of the concept of a multiverse or popular multiverse hypotheses include Sabine HossenfelderDavid GrossPaul Steinhardt, Anna Ijjas, Abraham LoebDavid SpergelNeil TurokViatcheslav MukhanovMichael S. TurnerRoger PenroseGeorge EllisJoe SilkCarlo RovelliAdam FrankMarcelo GleiserJim Baggott and Paul Davies.

Arguments against multiverse hypotheses

In his 2003 New York Times opinion piece, "A Brief History of the Multiverse", author and cosmologist Paul Davies offered a variety of arguments that multiverse hypotheses are non-scientific:

For a start, how is the existence of the other universes to be tested? To be sure, all cosmologists accept that there are some regions of the universe that lie beyond the reach of our telescopes, but somewhere on the slippery slope between that and the idea that there is an infinite number of universes, credibility reaches a limit. As one slips down that slope, more and more must be accepted on faith, and less and less is open to scientific verification. Extreme multiverse explanations are therefore reminiscent of theological discussions. Indeed, invoking an infinity of unseen universes to explain the unusual features of the one we do see is just as ad hoc as invoking an unseen Creator. The multiverse theory may be dressed up in scientific language, but in essence, it requires the same leap of faith.

— Paul Davies, "A Brief History of the Multiverse", The New York Times

George Ellis, writing in August 2011, provided a criticism of the multiverse, and pointed out that it is not a traditional scientific theory. He accepts that the multiverse is thought to exist far beyond the cosmological horizon. He emphasized that it is theorized to be so far away that it is unlikely any evidence will ever be found. Ellis also explained that some theorists do not believe the lack of empirical testability and falsifiability is a major concern, but he is opposed to that line of thinking:

Many physicists who talk about the multiverse, especially advocates of the string landscape, do not care much about parallel universes per se. For them, objections to the multiverse as a concept are unimportant. Their theories live or die based on internal consistency and, one hopes, eventual laboratory testing.

Ellis says that scientists have proposed the idea of the multiverse as a way of explaining the nature of existence. He points out that it ultimately leaves those questions unresolved because it is a metaphysical issue that cannot be resolved by empirical science. He argues that observational testing is at the core of science and should not be abandoned:

As skeptical as I am, I think the contemplation of the multiverse is an excellent opportunity to reflect on the nature of science and on the ultimate nature of existence: why we are here. ... In looking at this concept, we need an open mind, though not too open. It is a delicate path to tread. Parallel universes may or may not exist; the case is unproved. We are going to have to live with that uncertainty. Nothing is wrong with scientifically based philosophical speculation, which is what multiverse proposals are. But we should name it for what it is.

— George Ellis, "Does the Multiverse Really Exist?", Scientific American

Philosopher Philip Goff argues that the inference of a multiverse to explain the apparent fine-tuning of the universe is an example of Inverse Gambler's Fallacy.

Stoeger, Ellis, and Kircher note that in a true multiverse theory, "the universes are then completely disjoint and nothing that happens in any one of them is causally linked to what happens in any other one. This lack of any causal connection in such multiverses really places them beyond any scientific support".

In May 2020, astrophysicist Ethan Siegel expressed criticism in a Forbes blog post that parallel universes would have to remain a science fiction dream for the time being, based on the scientific evidence available to us.

Scientific American contributor John Horgan also argues against the idea of a multiverse, claiming that they are "bad for science."

Types

Max Tegmark and Brian Greene have devised classification schemes for the various theoretical types of multiverses and universes that they might comprise.

Max Tegmark's four levels

Cosmologist Max Tegmark has provided a taxonomy of universes beyond the familiar observable universe. The four levels of Tegmark's classification are arranged such that subsequent levels can be understood to encompass and expand upon previous levels. They are briefly described below.

Level I: An extension of our universe

A prediction of cosmic inflation is the existence of an infinite ergodic universe, which, being infinite, must contain Hubble volumes realizing all initial conditions.

Accordingly, an infinite universe will contain an infinite number of Hubble volumes, all having the same physical laws and physical constants. In regard to configurations such as the distribution of matter, almost all will differ from our Hubble volume. However, because there are infinitely many, far beyond the cosmological horizon, there will eventually be Hubble volumes with similar, and even identical, configurations. Tegmark estimates that an identical volume to ours should be about 1010115 meters away from us.

Given infinite space, there would be an infinite number of Hubble volumes identical to ours in the universe. This follows directly from the cosmological principle, wherein it is assumed that our Hubble volume is not special or unique.

Level II: Universes with different physical constants

In the eternal inflation theory, which is a variant of the cosmic inflation theory, the multiverse or space as a whole is stretching and will continue doing so forever, but some regions of space stop stretching and form distinct bubbles (like gas pockets in a loaf of rising bread). Such bubbles are embryonic level I multiverses.

Different bubbles may experience different spontaneous symmetry breaking, which results in different properties, such as different physical constants.

Level II also includes John Archibald Wheeler's oscillatory universe theory and Lee Smolin's fecund universes theory.

Level III: Many-worlds interpretation of quantum mechanics

Schrödinger's cat in the many-worlds interpretation, where a branching of the universe occurs through a superposition of two quantum mechanical states

Hugh Everett III's many-worlds interpretation (MWI) is one of several mainstream interpretations of quantum mechanics.

In brief, one aspect of quantum mechanics is that certain observations cannot be predicted absolutely. Instead, there is a range of possible observations, each with a different probability. According to the MWI, each of these possible observations corresponds to a different "world" within the Universal wavefunction, with each world as real as ours. Suppose a six-sided die is thrown and that the result of the throw corresponds to observable quantum mechanics. All six possible ways the die can fall correspond to six different worlds. In the case of the Schrödinger's cat thought experiment, both outcomes would be "real" in at least one "world".

Tegmark argues that a Level III multiverse does not contain more possibilities in the Hubble volume than a Level I or Level II multiverse. In effect, all the different worlds created by "splits" in a Level III multiverse with the same physical constants can be found in some Hubble volume in a Level I multiverse. Tegmark writes that, "The only difference between Level I and Level III is where your doppelgängers reside. In Level I they live elsewhere in good old three-dimensional space. In Level III they live on another quantum branch in infinite-dimensional Hilbert space."

Similarly, all Level II bubble universes with different physical constants can, in effect, be found as "worlds" created by "splits" at the moment of spontaneous symmetry breaking in a Level III multiverse. According to Yasunori NomuraRaphael Bousso, and Leonard Susskind, this is because global spacetime appearing in the (eternally) inflating multiverse is a redundant concept. This implies that the multiverses of Levels I, II, and III are, in fact, the same thing. This hypothesis is referred to as "Multiverse = Quantum Many Worlds". According to Yasunori Nomura, this quantum multiverse is static, and time is a simple illusion.

Another version of the many-worlds idea is H. Dieter Zeh's many-minds interpretation.

Level IV: Ultimate ensemble

The ultimate mathematical universe hypothesis is Tegmark's own hypothesis.

This level considers all universes to be equally real which can be described by different mathematical structures.

Tegmark writes:

Abstract mathematics is so general that any Theory Of Everything (TOE) which is definable in purely formal terms (independent of vague human terminology) is also a mathematical structure. For instance, a TOE involving a set of different types of entities (denoted by words, say) and relations between them (denoted by additional words) is nothing but what mathematicians call a set-theoretical model, and one can generally find a formal system that it is a model of.

He argues that this "implies that any conceivable parallel universe theory can be described at Level IV" and "subsumes all other ensembles, therefore brings closure to the hierarchy of multiverses, and there cannot be, say, a Level V."

Jürgen Schmidhuber, however, says that the set of mathematical structures is not even well-defined and that it admits only universe representations describable by constructive mathematics—that is, computer programs.

Schmidhuber explicitly includes universe representations describable by non-halting programs whose output bits converge after a finite time, although the convergence time itself may not be predictable by a halting program, due to the undecidability of the halting problem. He also explicitly discusses the more restricted ensemble of quickly computable universes.

Brian Greene's nine types

The American theoretical physicist and string theorist Brian Greene discussed nine types of multiverses:

Quilted
The quilted multiverse works only in an infinite universe. With an infinite amount of space, every possible event will occur an infinite number of times. However, the speed of light prevents us from being aware of these other identical areas.
Inflationary
The inflationary multiverse is composed of various pockets in which inflation fields collapse and form new universes.
Brane
The brane multiverse version postulates that our entire universe exists on a membrane (brane) which floats in a higher dimension or "bulk". In this bulk, there are other membranes with their own universes. These universes can interact with one another, and when they collide, the violence and energy produced is more than enough to give rise to a Big Bang. The branes float or drift near each other in the bulk, and every few trillion years, attracted by gravity or some other force we do not understand, collide and bang into each other. This repeated contact gives rise to multiple or "cyclic" Big Bangs. This particular hypothesis falls under the string theory umbrella as it requires extra spatial dimensions.
Cosmos animation of a cyclic universe
Cyclic
The cyclic multiverse has multiple branes that have collided, causing Big Bangs. The universes bounce back and pass through time until they are pulled back together and again collide, destroying the old contents and creating them anew.
Landscape
The landscape multiverse relies on string theory's Calabi–Yau spaces. Quantum fluctuations drop the shapes to a lower energy level, creating a pocket with a set of laws different from that of the surrounding space.
Quantum
The quantum multiverse creates a new universe when a diversion in events occurs, as in the real-worlds variant of the many-worlds interpretation of quantum mechanics.
Holographic
The holographic multiverse is derived from the theory that the surface area of a space can encode the contents of the volume of the region.
Simulated
The simulated multiverse exists on complex computer systems that simulate entire universes. A related hypothesis, as put forward as a possibility by astronomer Avi Loeb, is that universes may be creatable in laboratories of advanced technological civilizations who have a theory of everything. Other related hypotheses include brain in a vat-type scenarios where the perceived universe is either simulated in a low-resource way or not perceived directly by the virtual/simulated inhabitant species.
Ultimate
The ultimate multiverse contains every mathematically possible universe under different laws of physics.

Twin-world models

Concept of a twin universe, with the beginning of time in the middle

There are models of two related universes that e.g. attempt to explain the baryon asymmetry – why there was more matter than antimatter at the beginning – with a mirror anti-universe. One two-universe cosmological model could explain the Hubble constant (H0) tension via interactions between the two worlds. The "mirror world" would contain copies of all existing fundamental particles. Another twin/pair-world or "bi-world" cosmology is shown to theoretically be able to solve the cosmological constant (Λ) problem, closely related to dark energy: two interacting worlds with a large Λ each could result in a small shared effective Λ.

Cyclic theories

In several theories, there is a series of, in some cases infinite, self-sustaining cycles – typically a series of Big Crunches (or Big Bounces). However, the respective universes do not exist at once but are forming or following in a logical order or sequence, with key natural constituents potentially varying between universes (see § Anthropic principle).

M-theory

A multiverse of a somewhat different kind has been envisaged within string theory and its higher-dimensional extension, M-theory.

These theories require the presence of 10 or 11 spacetime dimensions, respectively. The extra six or seven dimensions may either be compactified on a very small scale, or our universe may simply be localized on a dynamical (3+1)-dimensional object, a D3-brane. This opens up the possibility that there are other branes which could support other universes.

Black-hole cosmology

Black-hole cosmology is a cosmological model in which the observable universe is the interior of a black hole existing as one of possibly many universes inside a larger universe. This includes the theory of white holes, which are on the opposite side of space-time.

Anthropic principle

The concept of other universes has been proposed to explain how our own universe appears to be fine-tuned for conscious life as we experience it.

If there were a large (possibly infinite) number of universes, each with possibly different physical laws (or different fundamental physical constants), then some of these universes (even if very few) would have the combination of laws and fundamental parameters that are suitable for the development of matter, astronomical structures, elemental diversity, stars, and planets that can exist long enough for life to emerge and evolve.

The weak anthropic principle could then be applied to conclude that we (as conscious beings) would only exist in one of those few universes that happened to be finely tuned, permitting the existence of life with developed consciousness. Thus, while the probability might be extremely small that any particular universe would have the requisite conditions for life (as we understand life), those conditions do not require intelligent design as an explanation for the conditions in the Universe that promote our existence in it.

An early form of this reasoning is evident in Arthur Schopenhauer's 1844 work "Von der Nichtigkeit und dem Leiden des Lebens", where he argues that our world must be the worst of all possible worlds, because if it were significantly worse in any respect it could not continue to exist.

Occam's razor

Proponents and critics disagree about how to apply Occam's razor. Critics argue that to postulate an almost infinite number of unobservable universes, just to explain our own universe, is contrary to Occam's razor. However, proponents argue that in terms of Kolmogorov complexity the proposed multiverse is simpler than a single idiosyncratic universe.

For example, multiverse proponent Max Tegmark argues:

[A]n entire ensemble is often much simpler than one of its members. This principle can be stated more formally using the notion of algorithmic information content. The algorithmic information content in a number is, roughly speaking, the length of the shortest computer program that will produce that number as output. For example, consider the set of all integers. Which is simpler, the whole set or just one number? Naively, you might think that a single number is simpler, but the entire set can be generated by quite a trivial computer program, whereas a single number can be hugely long. Therefore, the whole set is actually simpler... (Similarly), the higher-level multiverses are simpler. Going from our universe to the Level I multiverse eliminates the need to specify initial conditions, upgrading to Level II eliminates the need to specify physical constants, and the Level IV multiverse eliminates the need to specify anything at all... A common feature of all four multiverse levels is that the simplest and arguably most elegant theory involves parallel universes by default. To deny the existence of those universes, one needs to complicate the theory by adding experimentally unsupported processes and ad hoc postulates: finite space, wave function collapse and ontological asymmetry. Our judgment therefore comes down to which we find more wasteful and inelegant: many worlds or many words. Perhaps we will gradually get used to the weird ways of our cosmos and find its strangeness to be part of its charm.

— Max Tegmark

Possible worlds and real worlds

In any given set of possible universes – e.g. in terms of histories or variables of nature – not all may be ever realized, and some may be realized many times. For example, over infinite time there could, in some potential theories, be infinite universes, but only a small or relatively small real number of universes where humanity could exist and only one where it ever does exist (with a unique history). It has been suggested that a universe that "contains life, in the form it has on Earth, is in a certain sense radically non-ergodic, in that the vast majority of possible organisms will never be realized". On the other hand, some scientists, theories and popular works conceive of a multiverse in which the universes are so similar that humanity exists in many equally real separate universes but with varying histories.

There is a debate about whether the other worlds are real in the many-worlds interpretation (MWI) of quantum mechanics. In Quantum Darwinism one does not need to adopt a MWI in which all of the branches are equally real.

Possible worlds are a way of explaining probability and hypothetical statements. Some philosophers, such as David Lewis, posit that all possible worlds exist and that they are just as real as the world we live in. This position is known as modal realism.

Distribution of wealth

From Wikipedia, the free encyclopedia
Global share of wealth by wealth group, Credit Suisse, 2021
World distribution of wealth, GDP, and population by region in the year 2000. Created with openoffice.org Calc. Data obtained from the UNU-WIDER report on worldwide distribution of household wealth: Press release. The World Distribution of Household Wealth. December 5, 2006. By James B. Davies, Susanna Sandstrom, Anthony Shorrocks, and Edward N. Wolff. Tables to the 2006 report in Excel (including Gini coefficients for 229 countries). UNU-WIDER.

The distribution of wealth is a comparison of the wealth of various members or groups in a society. It shows one aspect of economic inequality or economic heterogeneity.

The distribution of wealth differs from the income distribution in that it looks at the economic distribution of ownership of the assets in a society, rather than the current income of members of that society. According to the International Association for Research in Income and Wealth, "the world distribution of wealth is much more unequal than that of income."

For rankings regarding wealth, see List of sovereign states by wealth inequality or list of countries by wealth per adult.

Definition of wealth

Wealth of an individual is defined as net worth, expressed as: wealth = assetsliabilities

A broader definition of wealth, which is rarely used in the measurement of wealth inequality, also includes human capital. For example, the United Nations definition of inclusive wealth is a monetary measure which includes the sum of natural, human and physical assets.

The relation between wealth, income, and expenses is: change of wealth = saving = income − consumption (expenses). If an individual has a large income but also large expenses, the net effect of that income on her or his wealth could be small or even negative.

Conceptual framework

There are many ways in which the distribution of wealth can be analyzed. One common-used example is to compare the amount of the wealth of individual at say 99 percentile relative to the wealth of the median (or 50th) percentile. This is P99/P50 is one of the potential Kuznets ratios which is the inverted U shape that indicates the relationship between the inequality and the income per capita. Another common measure is the ratio of total amount of wealth in the hand of top say 1% of the wealth distribution over the total wealth in the economy. In many societies, the richest ten percent control more than half of the total wealth.

The Pareto Distribution has often been used to mathematically quantify the distribution of wealth at the right tail (the wealth of the very rich); stating that the upper 20% owns 80%, the upper 4% owns 64%, the upper 0.8% owns 51.2%, etc. In fact, the tail of wealth distributions, similar to that of income distribution, behaves like a Pareto distribution but with a thicker tail.

Wealth over people (WOP) curves are a visually compelling way to show the distribution of wealth in a nation. WOP curves are modified distribution of wealth curves. The vertical and horizontal scales each show percentages from zero to one hundred. We imagine all the households in a nation being sorted from richest to poorest. They are then shrunk down and lined up (richest at the left) along the horizontal scale. For any particular household, its point on the curve represents how their wealth compares (as a proportion) to the average wealth of the richest percentile. For any nation, the average wealth of the richest 1/100 of households is the topmost point on the curve (people, 1%; wealth, 100%) or (p=1, w=100) or (1, 100). In the real world two points on the WOP curve are always known before any statistics are gathered. These are the topmost point (1, 100) by definition, and the rightmost point (poorest people, lowest wealth) or (p=100, w=0) or (100, 0). This unfortunate rightmost point is given because there are always at least one percent of households (incarcerated, long term illness, etc.) with no wealth at all. Given that the topmost and rightmost points are fixed ... our interest lies in the form of the WOP curve between them. There are two extreme possible forms of the curve. The first is the "perfect communist" WOP. It is a straight line from the leftmost (maximum wealth) point horizontally across the people scale to p=99. Then it drops vertically to wealth = 0 at (p=100, w=0).

The other extreme is the "perfect tyranny" form. It starts on the left at the Tyrant's maximum wealth of 100%. It then immediately drops to zero at p=2, and continues at zero horizontally across the rest of the people. That is, the tyrant and his friends (the top percentile) own all the nation's wealth. All other citizens are serfs or slaves. An obvious intermediate form is a straight line connecting the left/top point to the right/bottom point. In such a "Diagonal" society a household in the richest percentile would have just twice the wealth of a family in the median (50th) percentile. Such a society is compelling to many (especially the poor). In fact it is a comparison to a diagonal society that is the basis for the Gini values used as a measure of the disequity in a particular economy. These Gini values (40.8 in 2007) show the United States to be the third most dis-equitable economy of all the developed nations (behind Denmark and Switzerland).

More sophisticated models have also been proposed.

Theoretical approaches

To model aspects of the distribution and holdings of wealth, there have been many different types of theories used. Before the 1960s, the data regarding this was collected mostly from wealth tax and estate tax records, with further proof gathered from small unrepresentative examinations and a variety of other sources. The results from these sources tended to show that the distribution of wealth was very unequal, and that material inheritance had a big role in the matter of wealth differences and in the transmission of the status of wealth from generation to generation. There was also reason to believe that the inequality in wealth was shrinking over time, and also the distribution's shape demonstrated particular statistical regularities that could not have been caused by coincidence. Thus, early theoretical work on the distribution of wealth wanted to explain the statistical regularities, and also comprehend the relationship of basic forces which could be an explanation for the concentration of wealth to be high and the trend of declining over time. John Maynard Keynes explored the impact of monetary policy on wealth distribution in A Tract on Monetary Reform.

More lately, the research about wealth distribution has moved away from the worry with overall distributional characteristics, and in its place focuses more on the grounds of individual differences in the holdings of wealth. This change was caused partly because the importance of saving for retirement increased, and it is reflected in the vital role now assigned to the model of lifecycle savings developed by Modigliani and Brumberg (1954), and Ando and Modigliani (1963). Another important progress has been the increase in availability and finesse in sets of micro-data, which offer not just estimations of individuals' asset holdings and savings but also a variety of other household and personal characteristics that can assist in explain the differences in wealth.

Wealth inequality

A homeless individual sleeping on the street, next to a limousine

Wealth inequality refers to uneven distribution of wealth among individuals and entities. Although most research depends on written sources, archaeologists and anthropologists often view large houses as occupied by wealthy households. The distribution of contemporaneous house sizes in a society (perhaps analyzed using the Gini coefficient) then can regarded as a measure of wealth inequality. This approach has been used at least since 2014 and has shown, for example, that ancient wealth disparities in Eurasia were greater than those in North America and in Mesoamerica following the earliest Neolithic period.

Global inequality statistics

Share of wealth globally by year, as seen by Oxfam, based on the net worth

A study by the World Institute for Development Economics Research at United Nations University reports that the richest 1% of adults alone owned 40% of global assets in the year 2000, and that the richest 10% of adults accounted for 85% of the world total. The bottom half of the world adult population owned 1% of global wealth. A 2006 study found that the richest 2% own more than half of global household assets. The Pareto distribution gives 52.8% owned by the upper 1%.

According to the OECD in 2012 the top 0.6% of world population (consisting of adults with more than US$1 million in assets) or the 42 million richest people in the world held 39.3% of world wealth. The next 4.4% (311 million people) held 32.3% of world wealth. The bottom 95% held 28.4% of world wealth. The large gaps of the report get by the Gini index to 0.893, and are larger than gaps in global income inequality, measured in 2009 at 0.38. For example, in 2012 the bottom 60% of the world population held the same wealth in 2012 as the people on Forbes' Richest list consisting of 1,226 richest billionaires of the world.

A 2021 Oxfam report found that collectively, the 10 richest men in the world owned more than the combined wealth of the bottom 3.1 billion people, almost half of the entire world population. Their combined wealth doubled during the pandemic.

‘Global wealth Report 2021’, published by Credit Suisse, shows a substantial worldwide increase in wealth inequality during 2020. According to Credit Suisse, wealth distribution pyramid in 2020 shows that the richest group of adult population (1.1%) owns 45.8% of the total wealth. When compared to the 2013 wealth distribution pyramid, an overall increase of 4.8% can be seen. The bottom half of the world’s total adult population, the bottom quartile in the pyramid, owns only 1.3% of the total wealth. Again, when compared to the 2013 wealth distribution pyramid, a decrease of 1.7% can be observed. In conclusion, this comparison shows a substantial worldwide increase in wealth inequality over these years.

One of the main explanations for the ongoing increase of wealth inequality are the repercussions of the COVID-19 pandemic. Credit Suisse claims that the economic impact of the pandemic on employment and incomes in 2020 are likely to have a negative effect for the lowest groups of wealth holders, forcing them to spend more from their savings or incur higher debt. On the other hand, top wealth groups appeared to be relatively unaffected in this negative way. Moreover, they seemed to benefit from the impact of lower interest rates on share and house prices.

According to the ‘Global Wealth Report 2021’ published by Credit Suisse, there are 56 million millionaires in the world in 2020, increasing by 5.2 million from a year earlier. The biggest number of dollar millionaires is reported in the USA, with 22 million millionaires (approximately 39% of the world total). This is far ahead of China, holding second place, with 9.4% of all global millionaires. The third place is currently being held by Japan, with 6.6% of all global millionaires.

The World Inequality Report 2026 stated that the wealthiest 0.001% alone—fewer than 60,000 individuals—control three times more wealth than half of humanity combined.

Real estate

While sizeable numbers of households own no land, few have no income. For example, the top 10% of land owners (all corporations) in Baltimore, Maryland own 58% of the taxable land value. The bottom 10% of those who own any land own less than 1% of the total land value. This form of analysis as well as Gini coefficient analysis has been used to support land value taxation.

Wealth distribution pyramid

Pyramid of global wealth distribution in 2013

In 2013, Credit Suisse prepared a wealth pyramid infographic (shown right). Personal assets were calculated in net worth, meaning wealth would be negated by having any mortgages. It has a large base of low wealth holders, alongside upper tiers occupied by progressively fewer people. In 2013 Credit-suisse estimate that 3.2 billion individuals – more than two thirds of adults in the world – have wealth below US$10,000. A further one billion (adult population) fall within the 10,000 – US$100,000 range. While the average wealth holding is modest in the base and middle segments of the pyramid, their total wealth amounts to US$40 trillion, underlining the potential for novel consumer products and innovative financial services targeted at this often neglected segment.

The pyramid shows that:

  • half of the world's net wealth belongs to the top 1%,
  • top 10% of adults hold 85%, while the bottom 90% hold the remaining 15% of the world's total wealth,
  • top 30% of adults hold 97% of the total wealth.

Wealth distribution pyramid in 2020

In 2020, Credit Suisse created an updated wealth pyramid infographic. The infographic was constructed similarly to the pyramid in 2013, thus personal assets were calculated in net worth. In 2020, Credit Suisse estimated that approximately 2.88 billion people (55% of adult population) have wealth below US$10,000. Further, 1.7 billion individuals (38.2% of adult population) have wealth within the range of 10,000 – US$100,000. To continue, 583 million people have wealth within the range of 100,000 – US$1,000,000 and approximately 56 million people (1.1% of adult population) have wealth over US$1,000,000.

Comparison of 2013 and 2020 pyramids

Vast differences between 2013 and 2020 infographic can be observed. For the first time, more than 1% of all global adults have wealth over US$1,000,000. Credit Suisse explains in the ‘Global Wealth Report 2021’, that this increase reflects the economic disruption caused by the pandemic and disconnect between the improvement in the financial and real assets of households. However, the biggest difference can be seen in the 10,000 – US$100,000 segment. Since 2013, there had been an increase of almost 10% of total adult population. According to Credit Suisse, the number of adults in this segment tripled since 2000. Credit Suisse explains this fact by stating that this increase was a result of growing prosperity of emerging economies, especially China, and the expansion of the middle class in the developing world. The upper-middle segment, with wealth in a range of 100,000 – US$1,000,000 has increased by 3.4%. Credit Suisse in the report states that the middle class in developed countries typically belong to this group.

Wealth outlook for 2020-2025

According to the ‘Global wealth Report 2021’, published by Credit Suisse, global wealth is projected to rise by 39% over the next five years reaching USD 583 trillion by 2025. Wealth per adult is also projected to increase by 31% and so is the number of global millionaires. The wealth pyramid, an infographic used to determine wealth distribution, will also change. The bottom segment covering adults with a net worth below USD 10,000 will likely decrease by approximately 108 million over the next five years. The lower-middle segment of the pyramid containing adults with a net worth in the range of USD 10,000 and USD 100,000 is projected to rise by 237 million adults. Most of these new members are most likely to be from lower-income countries. The upper-middle segment, consisting of adults with wealth between USD 100,000 and USD 1 million is projected to rise by 178 million adults. Most of these new members (approximately 114 million) are likely to come from upper-middle-income countries. Number of global millionaires is also projected to increase. According to the estimates made by Credit Suisse, the number of global millionaires could exceed 84 million by 2025, a rise of almost 28 million from 2020. The increase of millionaires will not only occur in developed countries such as the USA or other developed countries in Europe, but it is also expected to rapidly increase in lower-income countries. The biggest increase is expected in China, with a change of 92.7%, which is about 4.8 million new dollar millionaires. As a consequence, the number of Ultra High Net Worth Individuals (UHNWI) with net worth exceeding USD 50 million, will also increase.

Gini Coefficient

Gini coefficient (or Gini index) is an indicator that is often used to determine wealth inequality. A Gini coefficient of 0 reflects perfect equality, where all income or wealth values are the same, while a Gini coefficient of 1 (or 100%) reflects maximal inequality among values, a situation where a single individual has all the income while all others have none. According to the Credit Suisse ‘Global wealth Report 2021’, Brunei had the highest Gini coefficient in 2021 (91.6%), therefore the wealth distribution in Brunei is vastly unequal. Slovakia had the lowest Gini coefficient in 2021 (50.3%) out of all countries, which makes Slovakia the most equal country in terms of wealth distribution. When compared to the report made by Credit Suisse in 2019, an increasing trend of wealth inequality can be observed. This may be the result of repercussions of the Covid-19 pandemic. The biggest increase was recorded in Brazil. The Gini coefficient in 2019 was 88.2% and 89% in 2021, with an increase of 0.8% over this period.

Geographical distribution

Wealth is unevenly distributed across different world regions. At the end of the 20th century, wealth was concentrated among the G8 and Western industrialized nations, along with several Asian and OPEC nations. In the 21st century, wealth is still concentrated among the G8 with United States of America leading with 30.2%, along with other developed countries, several Asia-pacific countries and OPEC countries.

Countries by total wealth (trillions USD), Credit Suisse

Region Proportion of world (%)
Population Net worth GDP
PPP Exchange rates PPP Exchange rates
North America 5.2 27.1 34.4 23.9 33.7
Central/South America 8.5 6.5 4.3 8.5 6.4
Europe 9.6 26.4 29.2 22.8 32.4
Africa 10.7 1.5 0.5 2.4 1.0
Middle East 9.9 5.1 3.1 5.7 4.1
Asia 52.2 29.4 25.6 31.1 24.1
Other 3.2 3.7 2.6 5.4 3.4
Totals (rounded) 100% 100% 100% 100% 100%

World distribution of financial wealth. In 2007, 147 companies controlled nearly 40 percent of the monetary value of all transnational corporations.

In the United States

The average personal wealth of people in the top 1% is more than a thousand times that of people in bottom 50%.
 
The logarithmic scale shows how wealth has increased for all percentile groups, though moreso for wealthier people.
 
Average net worth—which heavily weights extremely high-wealth families—substantially exceeds median net worth (families in the fiftieth percentile). Further, average net worth outgrew median net worth from 2019 through 2022.
 
Though the 10th percentile of American households have zero net worth, the 90th percentile has $1.8 million of household wealth.
 
Higher educational attainment in the US correlates with higher household wealth.
 
Median wealth of married couples is almost three times that of single individuals, regardless of gender and across all age categories.

According to PolitiFact, in 2011 the 400 wealthiest Americans "have more wealth than half of all Americans combined." Inherited wealth may help explain why many Americans who have become rich may have had a "substantial head start". In September 2012, according to the Institute for Policy Studies, "over 60 percent" of the Forbes richest 400 Americans "grew up in substantial privilege".

In 2007, the richest 1% of the American population owned 34.6% of the country's total wealth (excluding human capital), and the next 19% owned 50.5%. The top 20% of Americans owned 85% of the country's wealth and the bottom 80% of the population owned 15%. From 1922 to 2010, the share of the top 1% varied from 19.7% to 44.2%, the big drop being associated with the drop in the stock market in the late 1970s. Ignoring the period where the stock market was depressed (1976–1980) and the period when the stock market was overvalued (1929), the share of wealth of the richest 1% remained extremely stable, at about a third of the total wealth. Financial inequality was greater than inequality in total wealth, with the top 1% of the population owning 42.7%, the next 19% of Americans owning 50.3%, and the bottom 80% owning 7%. However, following the Great Recession which started in 2007, the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%. The Great Recession also caused a drop of 36.1% in median household wealth but a drop of only 11.1% for the top 1%, further widening the gap between the 1% and the 99%.

Dan Ariely and Michael Norton show in a study (2011) that US citizens across the political spectrum significantly underestimate the current US wealth inequality and would prefer a more egalitarian distribution of wealth, raising questions about ideological disputes over issues like taxation and welfare.

Wealth proportion by population by year (including homes)
Year Bottom
99%
Top
1%
1922 63.3% 36.7%
1929 55.8% 44.2%
1933 66.7% 33.3%
1939 63.6% 36.4%
1945 70.2% 29.8%
1949 72.9% 27.1%
1953 68.8% 31.2%
1962 68.2% 31.8%
1965 65.6% 34.4%
1969 68.9% 31.1%
1972 70.9% 29.1%
1976 80.1% 19.9%
1979 79.5% 20.5%
1981 75.2% 24.8%
1983 69.1% 30.9%
1986 68.1% 31.9%
1989 64.3% 35.7%
1992 62.8% 37.2%
1995 61.5% 38.5%
1998 61.9% 38.1%
2001 66.6% 33.4%
2004 65.7% 34.3%
2007 65.4% 34.6%
2010 64.6% 35.4%
Trends in the distribution of family wealth, 1989 to 2022. Congressional Budget Office.

Wealth concentration

Wealth concentration is a process by which created wealth, under some conditions, can become concentrated by individuals or entities. Those who hold wealth have the means to invest in newly created sources and structures of wealth, or to otherwise leverage the accumulation of wealth, and are thus the beneficiaries of even greater wealth.

Economic conditions

Global share of wealth by wealth group

The first necessary condition for the phenomenon of wealth concentration to occur is an unequal initial distribution of wealth. The distribution of wealth throughout the population is often closely approximated by a Pareto distribution, with tails which decay as a power-law in wealth. (See also: Distribution of wealth and Economic inequality). According to PolitiFact and others, the 400 wealthiest Americans had "more wealth than half of all Americans combined." Inherited wealth may help explain why many Americans who have become rich may have had a "substantial head start". In September 2012, according to the Institute for Policy Studies, "over 60 percent" of the Forbes 400 Richest Americans "grew up in substantial privilege".

The second condition is that a small initial inequality must, over time, widen into a larger inequality. This is an example of positive feedback in an economic system. A team from Jagiellonian University produced statistical model economies showing that wealth condensation can occur whether or not total wealth is growing (if it is not, this implies that the poor could become poorer).

Joseph E. Fargione, Clarence Lehman and Stephen Polasky demonstrated in 2011 that chance alone, combined with the deterministic effects of compounding returns, can lead to unlimited concentration of wealth, such that the percentage of all wealth owned by a few entrepreneurs eventually approaches 100%.

Correlation between being rich and earning more

Given an initial condition in which wealth is unevenly distributed (i.e., a "wealth gap"), several non-exclusive economic mechanisms for wealth condensation have been proposed:

  • A correlation between being rich and being given high-paid employment (oligarchy).
  • A marginal propensity to consume low enough that high incomes are correlated with people who have already made themselves rich (meritocracy).
  • The ability of the rich to influence government disproportionately to their favor thereby increasing their wealth (plutocracy).

In the first case, being wealthy gives one the opportunity to earn more through high paid employment (e.g., by going to elite schools). In the second case, having high paid employment gives one the opportunity to become rich (by saving your money). In the case of plutocracy, the wealthy exert power over the legislative process, which enables them to increase the wealth disparity. An example of this is the high cost of political campaigning in some countries, in particular in the US (more generally, see also plutocratic finance).

Because these mechanisms are non-exclusive, it is possible for all three explanations to work together for a compounding effect, increasing wealth concentration even further. Obstacles to restoring wage growth might have more to do with the broader dysfunction of a dollar dominated political system particular to the US than with the role of the extremely wealthy.

Counterbalances to wealth concentration include certain forms of taxation, in particular wealth tax, inheritance tax and progressive taxation of income. However, concentrated wealth does not necessarily inhibit wage growth for ordinary workers with low wages.

The investor, billionaire, and philanthropist Warren Buffett, one of the wealthiest people in the world, voiced in 2005 and once more in 2006 his view that his class, the "rich class", is waging class warfare on the rest of society. In 2005 Buffett said to CNN: "It's class warfare, my class is winning, but they shouldn't be." In a November 2006 interview in The New York Times, Buffett stated that "[t]here’s class warfare all right, but it’s my class, the rich class, that’s making war, and we’re winning."

Redistribution of wealth and public policy

In many societies, attempts have been made, through property redistribution, taxation, or regulation, to redistribute wealth, sometimes in support of the upper class, and sometimes to diminish economic inequality.

Examples of this practice go back at least to the Roman Republic in the third century B.C., when laws were passed limiting the amount of wealth or land that could be owned by any one family. Motivations for such limitations on wealth include the desire for equality of opportunity, a fear that great wealth leads to political corruption, to the belief that limiting wealth will gain the political favor of a voting bloc, or fear that extreme concentration of wealth results in rebellion. Various forms of socialism attempt to diminish the unequal distribution of wealth and thus the conflicts and social problems arising from it.

During the Age of Reason, Francis Bacon wrote "Above all things good policy is to be used so that the treasures and monies in a state be not gathered into a few hands… Money is like fertilizer, not good except it be spread."

The rise of Communism as a political movement has partially been attributed to the distribution of wealth under capitalism in which a few lived in luxury while the masses lived in extreme poverty or deprivation. However, in the Critique of the Gotha Programme, Marx and Engels criticized German Social Democrats for placing emphasis on issues of distribution instead of on production and ownership of productive property. While the ideas of Marx have nominally influenced various states in the 20th century, the Marxist notions of socialism and communism remains elusive.

On the other hand, the combination of Labour movement, technology, and social liberalism has diminished extreme poverty in the developed world today, though extremes of wealth and poverty continue in the Third World.

In the Outlook on the Global Agenda 2014 from the World Economic Forum the widening income disparities come second as a worldwide risk. According to a 2009 meta-analysis by Paul and Moser, countries with high income inequality and poor unemployment protections experience worse mental health outcomes among the unemployed.

Human extinction

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