More than half of the world’s wealth is owned by 2% of adults, whilst the least wealthy 50% of the

world’s adults own only 1% of global wealth. Wealth is heavily concentrated in North America, Europe,
and affluent Asian-Pacific countries. People living in these countries, together hold almost 90% of total
world wealth. (Cambridge IGCSE & O Level Economics, 2018)

a. How do you feel about this fact? Please explain in depth. (6 points)
I think the facts are true, nowadays the average market economy in the world is increasing, and
young people are now playing with crypto, trading, NFT, etc. With this website and application,
everyone can make money wherever and whenever they want. And this is universal everyone in
the world can learn and do trading and crypto. If you are smart and master the algorithm of
trading and crypto, you can immediately get a lot of money and become a billionaire. It is also
said that the world's least rich adults only have 1% of global wealth, that's because adults who
live in developed countries have an economy and have mastered the world's economic systems
such as (North America, Europe, and Asia Pacific countries). Even though they are not rich in
prosperous and developed countries, but only work like ordinary working people, he is already
considered a person who is getting rich with people in countries that are not economically
developed, because for example if that person has worked in a prosperous and advanced
country, his economy will last. moved to a country that was not yet developed economically, he
became rich in an instant. The point is that developed and economically prosperous countries
must dominate all economic markets in the world and the way countries that want to develop
their economies and compete must cooperate well.
b. What do you think could be done to increase global wealth equality? Explain why it might work.
(5 points)

Stop Illicit Outflows

Progressive Income Tax
Enforce a Living Wage
Workers’ Right to Organize
Stop Other Labor Abuses
Open and Democratic Trade Policy
How to increase by doing decreasing the incomes of the richest or by increasing the incomes of
the poorest. Policies focusing on the latter include increasing employment or wages and
transferring income. Increase economic inclusion and create decent work and higher incomes.
enhance social services and ensure access to social protection. facilitate safe migration and
mobility and tackle irregular migration. foster pro-poor fiscal policies and develop fair and
transparent tax systems. Because I believe that this will to empower and promote inclusive
social and economic growth. We can ensure equal opportunity and reduce inequalities of
income if we eliminate discriminatory laws, policies and practices.
c. Explain why the children of the poor are likely to be poor as adults. (6 points)
In my opinion, because parents cannot educate their children well, there is not enough money
to send their children to school, it means that if the child does not go to school and does not
have sufficient education, then the child only follows the style and way of daily life of his parents
 and this method does not make his child develop forward to get the right education and how to
make money. Some children are resistant to some of the adverse effects of poverty, but many
studies show a significant relationship between poverty and child abuse, adverse childhood
experiences, increased material hardship, poorer physical health, low birth weight, structural
changes in brain development, health mentally. problems, decreased educational attainment,
and increased risk, delinquency, and criminal behavior in adolescence and adulthood. Regarding
the timing and severity of poverty, the literature documents that early childhood poverty,
prolonged poverty, and deep poverty are all associated with poorer child and adult outcomes.
The point is that someone must provide support from the government or rich people to help
poor children by giving money for school, food and daily necessities, so that their lives can be
more advanced and can earn their own money with intelligence. In this way it can also help the
country's economy to prosper and develop rapidly.

d. On that note, please explain as well, why the children of wealthy adults tend to be successful as
adults. (3 points)
In my opinion, because most of the children of rich people are born with sufficient or even
excessive equipment and necessities, rich children's success in materialism (wealth and
possessions are a sign of success in life) positively affects life satisfaction by increasing one's
economic motivation. This can lead to an increase in their future satisfaction with their standard
of living, which positively affects their overall life satisfaction. They go to good schools and on
average their parents put them in the most famous and smart schools in their country, they
want something that already exists, if the children of rich people want to try to open their own
business or shop, if they fail, they can try again, no Like ordinary people, starting a business
must be properly thought about so that they don't lose their money just for capital and then fail.
Ordinary people becoming rich people are really great, because they start from 0%, if the
children of rich people become successful it's normal, because they don't start at 0%. In general,
children of rich people continue their father's business which eventually becomes hereditary.
And of course the business has been going well, not from the beginning of starting the business.

Full name: Benedictus Wahyu Hamdoko

Class/number: SHS-2/3