Private affluence, public poverty

Santosh Kumar Mohapatra

The world today is witnessing an unparalleled concentration of wealth. Never before in human history have so few individuals controlled such vast economic resources. While technological innovation, globalization, artificial intelligence, digital platforms, and financial markets have created extraordinary opportunities for wealth generation, they have also produced widening inequalities. The central question confronting modern societies is whether economic growth and wealth creation automatically lead to social welfare and human development. More than six decades ago, prominent economist John Kenneth Galbraith raised this question in his influential book “The Affluent Society.” Galbraith argued that advanced capitalist economies often generate enormous private wealth while neglecting public goods and social welfare. He described this contradiction as “private affluence and public poverty”—a situation where luxury consumption expands rapidly while public services such as education, health care, housing, transportation, and environmental protection remain inadequate. Today, Galbraith’s warning appears more pertinent than ever. According to the latest global billionaire rankings published by Forbes in 2026, the combined wealth of the world’s ten richest individuals has reached approximately $2.9 trillion.

To understand the scale of this concentration, it is useful to note that this amount exceeds the annual GDP of many large economies. Contrary to popular belief, billionaires do not hold vast piles of cash. Most of their wealth exists as ownership of shares, stocks, and financial assets. When the market value of companies such as Tesla, Amazon, Alphabet, Nvidia, Oracle, or Meta rises, the net worth of their founders and major investors increases correspondingly. Thus, billionaire wealth today is driven largely by financial markets, investor expectations, technological innovation, and speculative future growth. India reflects the same global trend.

According to the latest Forbes’ billionaire rankings, India had around 205 billionaires in 2025, which increased to approximately 229 in 2026. Their combined wealth now exceeds $1 trillion, making India one of the fastest-growing centres of private wealth accumulation in the world. India’s economic growth has undoubtedly reduced extreme poverty over the long term. Yet the benefits of growth remain distributed unevenly. Organisations such as Oxfam have drawn attention to structural factors underlying billionaire wealth. The first is inheritance. Large fortunes are often transferred across generations, creating a form of modern economic aristocracy. The second factor is monopoly power and market dominance. Large corporations often control significant portions of markets, reducing competition and increasing their ability to influence prices, wages, and consumer behaviour. The third factor is crony capitalism. Wealthy corporations frequently benefit from favourable regulations, tax concessions, government contracts, privatization policies, and political influence. Labour exploitation remains another important concern.

Workers frequently receive only a fraction of the economic value they generate. Productivity growth often benefits shareholders and corporate executives more than employees. As a result, corporate profits rise much faster than wages. Global supply chains further intensify this process. Low-cost labour in developing countries contributes significantly to corporate profitability. Products manufactured by poorly paid workers frequently generate enormous returns for multinational corporations and investors located elsewhere. Economic growth remains essential for improving living standards and expanding opportunities. The real question is how the benefits of growth are distributed. A nation’s success cannot be measured merely by the number of billionaires it produces or by stock market indices. Genuine development should be evaluated through broader indicators: quality education, accessible health care, productive employment, social mobility, gender equality, environmental sustainability, and the dignity of labour. Economic growth that enriches only a small minority while leaving large sections behind cannot remain socially or politically sustainable indefinitely. The challenge before India is not simply to create more billionaires, unicorns, or corporate giants. The greater challenge is to ensure that prosperity is shared more widely, public institutions are strengthened, and economic progress translates into improved lives for all citizens.

The writer is an Odisha-based economist and columnist.