Spain is not immune to the global trend of increasing economic inequality. A report by Oxfam Intermón shows that between 2020 and 2023, dividends paid to shareholders worldwide exceeded the increase in workers’ salaries by 15 times. In Spain, this gap was somewhat smaller but still reached 3.5 times. This disparity in the distribution of wealth generated by companies is a cause for concern at both a global and national level.
According to the Janus Henderson Global Dividend Index, which analyzes the largest companies in the world, dividends will reach a historic high in 2024. Large multinationals distribute 90% of dividends globally, providing a snapshot of the economic trend worldwide. Oxfam’s research reveals that global dividends in 31 countries increased by 45% between 2020 and 2023, while salaries only increased by 3%.
In Spain, the situation is equally troubling. From 2020 to 2023, dividends grew by 35%, while salaries only increased by 0.5% in real terms. In contrast, the average salary of senior managers in the country’s largest companies rose by 25% during the same period. These calculations are based on data from the National Statistics Institute and the Janus Henderson index.
Income inequality is a growing concern, according to the International Labor Organization (ILO). Corporate profits and dividends are soaring, while wages remain stagnant, leading millions of people into poverty. Oxfam’s analysis shows that only two countries out of 37 offer a minimum wage above the estimated living wage necessary to cover basic needs.
The organization calls for governments to limit shareholder returns, support unions, and legislate in favor of living wages to address this issue. The focus should be on rewarding work rather than accumulating wealth through dividends. It is essential to address the increasing working poverty and ensure fair wages for all workers.
In conclusion, income inequality is becoming increasingly prevalent globally and nationally alike
