The superrich get richer

Summary

Marketplace Morning Report: "The Superrich Get Richer"

Release Date: January 20, 2025

In this episode of the Marketplace Morning Report, host Liana Byrne delves into the alarming surge in billionaire wealth, explores the implications of extreme economic inequality, provides updates on global markets, discusses the evolving situation with TikTok, and examines the National Hockey League's (NHL) remarkable financial turnaround and diversity initiatives. The episode features insightful discussions with Max Lawson from Oxfam, BBC correspondents Saranjana Tiwari and Sam Gruy, and perspectives from industry experts and fans.

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Billionaire Wealth Skyrockets by $2 Trillion

Liana Byrne opens the discussion with a focus on the unprecedented increase in billionaire wealth. According to a recent report by the charity Oxfam, billionaire wealth surged by a staggering $2 trillion in the past year—three times faster than the previous year. This surge coincides with the gathering of world leaders and business elites at the World Economic Forum in Davos, Switzerland.

Key Insights:

• Economic Control by the Superrich: Max Lawson, Head of Inequality Policy at Oxfam, attributes the $2 trillion increase to billionaires exerting more control over the economy. "We're funneling wealth to the super rich," Lawson explains at [01:29]. He emphasizes that while billionaire fortunes soar, about 3.5 billion people remain in poverty—the same number as in 1990.

• Future Projections and Implications: Lawson warns of the potential rise to five trillionaires within the next decade, highlighting the corrosive effects on democracy and societal fairness. "We can't have extreme wealth inequality and have democracy," he states at [02:11]. The concentration of wealth among a tiny elite undermines democratic institutions and exacerbates social disparities.

• Taxation as a Solution: In response to Oxfam's advocacy for taxing the wealthy to bridge the economic gap, Lawson dismisses criticisms about the complexity of such measures. "This isn't rocket science," he asserts at [02:55], pointing out historical precedents like the high tax rates on the richest in the U.S. up until the 1980s.

Global Market Movements and Bitcoin's Record High

Byrne provides a snapshot of the current global market dynamics before delving into technology and sports news. She notes significant movements, including a drop in the dollar's value and Bitcoin reaching a record high of over $109,000. Additionally, the Russian ruble and China's yuan are strengthening against other currencies.

TikTok's Uncertain Future Amid U.S.-China Tensions

The episode shifts focus to the fluctuating status of TikTok in the United States. Following President Donald Trump's initial ban on the Chinese-owned app, TikTok has partially resumed services after the president-elect indicated a potential deal that might grant the U.S. a 50% ownership stake.

Key Insights:

• Chinese Response: Saranjana Tiwari, BBC correspondent, reports from Singapore that China is closely monitoring the situation. "Donald Trump seems to have seen sense in the reinstatement of the app," she notes at [04:30].

• ByteDance's Position: ByteDance, TikTok's parent company, has responded positively to the restoration of services but remains uncertain about finding a buyer for its U.S. operations. "TikTok services have been restored. For now, it's not clear...," Tiwari explains at [04:52].

NHL's Financial Resurgence and Commitment to Diversity

One of the episode's highlights is the NHL's remarkable financial performance and its initiatives to promote diversity and inclusion within the sport.

Key Insights:

• Record Revenues and Viewership: The NHL reported revenues of $6.2 billion last season, bolstered by 22.5 million fans attending games across North America and achieving the most-watched season in 30 years thanks to new television deals.

• Impact of COVID-19: Sam Gruy of the BBC discusses the challenges faced during the pandemic, including significant revenue losses from ticketing and concessions. "Our revenue sources dried up. Obviously. No ticketing revenue, no food and beverage revenue," explains Nick Eves, COO of the Toronto Maple Leafs, at [06:39].

• Expansion and New Teams: The introduction of new franchises, such as the Seattle Kraken, marks the NHL's growth. "Tonight we are finally ready to open Climate Pledge Arena as the Seattle Kraken take the ice for the very first time," Gruy reports at [07:09].

• Diversity Initiatives: Katie Townsend, NHL’s Chief Marketing Officer, highlights the league's strides in diversity. "We have a female assistant GM Alexandra Mandriki... and Jessica Campbell, one of our assistant coaches who is the first female coach," she states at [07:25]. These efforts aim to make the sport more inclusive and attract a broader fan base.

• Fan Perspectives: Young fan Selena shares her enthusiasm for the NHL's inclusive approach. "I think it's Seattle that has their first women coach in history. And I think... women are part of the game," she remarks at [07:59].

• Academic Perspective: Dr. Ann Peguero Lang from the University of Guelph comments on the correlation between diversity and the NHL's financial success. "Increasing ability of the NHL to demonstrate a diverse audience... has brought a booming business back to the NHL," she notes at [08:17].

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Conclusion

This episode of the Marketplace Morning Report paints a comprehensive picture of the widening economic divide fueled by the superrich, the intricate dance of global markets, the geopolitical tensions surrounding tech giants like TikTok, and the NHL's inspiring comeback driven by diversity and strategic growth. Through expert interviews and on-the-ground reports, listeners gain a nuanced understanding of the forces shaping our economic and cultural landscapes.

Transcript

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[Liana Byrne]

Let'S talk about the Billionaire Boom. Live from the UK, this is the Marketplace Morning Report from the BBC World Service. I'm Liana Byrne. Good morning. Billionaire wealth surged by a staggering $2 trillion last year. And that's three times faster than the year before, according to a new report from the charity Oxfam. And that report was just released as world leaders and business elites gather for the World Economic Forum in Davos, Switzerland. Max Lawson is head of inequality policy at Oxfam. Hello.

[Max Lawson]

Hello.

[Liana Byrne]

So what are the primary drivers behind this very much staggering $2 trillion increase in billionaire wealth?

[Max Lawson]

I would say the primary driver is we're seeing more and more control of our economy by billionaires. And I think everyone can see that on their news screens every day. Billionaires getting involved in politics, the media and very much controlling the market. So the returns to billionaires are enormous. And we're seeing a $2 trillion increase in their fortunes in the last year, whilst about the same number of people, 3.5 billion people, are still in poverty, the same number as 1990. So we've got this topsy turvy world where we're funneling wealth to the super rich.

[Liana Byrne]

In your report, you also predict at least 5 trillionaires within the next decade. So what does that mean for economic inequality?

[Max Lawson]

Inequality matters because it's corrupting our societies, it's undermining our democracies. We can't have extreme wealth inequality and have democracy. We have to make a choice. So the fact we're going to have 5 trillionaires should worry everybody because that brings immense power. You can see billionaires buying the media, buying judges, buying politics. That's not right. That's leading to a world that's incredibly unfair, where most people are struggling to survive and there are very, very few tiny group of winners who should not have all that money.

[Liana Byrne]

Now Oxfam argues for taxing the richest to end that extreme wealth gap. But there are a lot of arguments against taxing very wealthy people in different.

[Max Lawson]

This isn't rocket science. They like to make you think it's impossibly complicated. In the US, you know, the bastion of capitalism, the top rate of tax up until the 1980s was 75% on the richest. Rich people can pay more tax.

[Liana Byrne]

Okay, I really appreciate your time. Thank you so much for joining us in Marketplace.

[Max Lawson]

No problem. Thank you.

[Liana Byrne]

Now let's do the numbers. Lots of moves on the markets ahead of Donald Trump's inauguration today the dollar dropped and bitcoin hit a record high above $109,000. Also, the Russian ruble and China's yuan are both gaining strength.

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[Liana Byrne]

So after a weekend of uncertainty, TikTok is back. Well, sort of. The Chinese owned video app started restoring its service in the US After Donald Trump said he'd delay the ban that forced it offline in the first place. But the U.S. president elect now says he'll issue an order to give more time for a potential deal, one that could see the US taking a 50% ownership stake in the app. The BBC's Saranjana Tiwari is outside TikTok's headquarters in Singapore with the latest.

[Saranjana Tiwari]

One country that is obviously watching this story very closely is China. And the Chinese Foreign Ministry has said that Donald Trump seems to have seen sense in the reinstatement of the app. For the time being at least.

[Liana Byrne]

Yeah, it's interesting. I mean, so much uncertainty, especially for the company ByteDance has it responded to the evolving situation.

[Saranjana Tiwari]

It has said exactly what it said in the US as well, that it welcomes Donald Trump getting involved in and essentially saying thanks to Donald Trump, tick tock services have been restored. For now, it's not clear again if TikTok's US operations have found a buyer.

[Liana Byrne]

Serenjana to worry there. Now let's put things on ice and talk about big numbers. For North America's National Hockey League, the NHL raked in $6.2 billion last season, with 22.5 million fans packing into arenas across the U.S. and Canada. And now, thanks to new TV deals, it was the most watched season in 30 years. From Toronto here's the BBC's Sam Gruy.

[Sam Gruy]

Welcome to game night in Toronto and a sport being driven by new teams, new technology and new fans like Selena.

[Selena]

I am a big fan of the professional women's Hockey league, so I'm also really excited for that and that starts next week as well. But definitely with the women's league coming up, I've definitely started getting more into like the men's league because of that.

[Sam Gruy]

This evening's game is a pride night, one of many themed evenings across professional hockey promoting diversity and inclusion.

[Selena]

I got my pride socks on. I think it's absolutely great. Queer people have always been a sports and I feel like games like this really bring out the energy and the excitement for that. Everyone's welcome and like things like tonight show that everyone is. I think that's really important.

[Sam Gruy]

From the stands, it's not hard to see why this Fast and furious game is so popular with big hits and late drama. But as the packed crowds make their way out of the arena, it's a visual reminder of how far the sport has come since 2020.

[Nick Eves]

The NHL just announcing that they are pausing the season due to the coronavirus.

[Sam Gruy]

The Nick Eves saw the impact firsthand. As chief operating officer of NHL side the Toronto Maple Leafs, every one of.

[Nick Eves]

Our revenue sources dried up. Obviously. No ticketing revenue, no food and beverage revenue. It was a terrible couple years of no revenue being generated and lost time.

[Sam Gruy]

4,000Km west across North America, the NHL's newest franchise was taking to the ice for the first time.

[Nick Eves]

And tonight we are finally ready to open Climate Pledge arena as the Seattle Kraken take the ice for the very first time.

[Sam Gruy]

The national Chief Marketing officer Katie Townsend says the team and the league has come a long way since then.

[Katie Townsend]

I feel incredibly proud of the brand.

[Sam Gruy]

That we launched and the work off the ice has inspired new audiences to get involved in the sport too.

[Katie Townsend]

We have a female assistant GM Alexandra Mandriki, who was actually the first member of our hockey Ops team. And now really the kind of forefront of this is Jessica Campbell, one of our assistant coaches who is the first female coach. But coaching behind the bench for an NHL team and I think that's important that people see people who look like them within the world of hockey. It's important for the growth of the fan base.

[Sam Gruy]

It's something 22 year old superfan Selena agrees with.

[Selena]

I feel like a lot more women have been looking to the game. I think it's Seattle that has their first women coach in history. And I think, you know, that's really big. That's really showing the world that, you know, women are part of the game.

[Sam Gruy]

As does Dr. Ann Peguero Lang, chair in Sportsman Management at the University of Guelph in Canada.

[Dr. Ann Peguero Lang]

I think that a lot of the new money coming into sport has to do with probably the increasing ability of the NHL to demonstrate a diverse audience, both demographically in terms of age and demographically in terms of racial makeup and gender. So we've got several different factors, I think, that have all come together to bring a booming business back to the NHL.

[Sam Gruy]

From Toronto, I'm the BBC Sam Drouet for Marketing Place.

[Liana Byrne]

And in the UK I'm Liana Byrne with a Marketplace morning report from the BBC World Service.

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