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Since we launched, we have received lots questions. Here are our responses to seven of the most frequently asked questions.

Oxfam’s new inequality report, which reveals that billionaires’ fortunes grew by $2.5 billion a day last year, as poorest half of humanity – 3.8 billion people – saw their wealth fall, is making headlines around the globe.

1. Why is Oxfam attacking billionaires – they are talented entrepreneurs who create jobs and wealth. Billionaires such as Bill Gates have even given millions to charity.

Oxfam is not anti-wealth but anti-poverty. We shine a spotlight on the billionaires growing wealth to highlight the problem with our broken economic system. Our economies enable a small number of people to accumulate unimaginable wealth while paying relatively little tax, even as vital public services such as healthcare and education are crumbling for want of funds. This doesn’t make sense.

It’s true that some billionaires have created vast business empires from nothing – and created jobs and prosperity for themselves and others. However this is not true of all of them. Oxfam estimates that two thirds of billionaire wealth is inherited or tainted with monopoly or cronyism. Equally not all billionaires ensure their workers get a fair share of the profits from their businesses by for example paying a living wage.

It’s also true some billionaires such as Bill Gates are using their wealth to help others – and they should be congratulated. But charitable giving does not replace a company or individual’s responsibility to pay their fair share of tax. And many wealthy people agree with us – Bill Gates says the first responsibility of the super-rich is to pay their taxes and Warren Buffet has been calling for higher taxes for the super-rich.

2. Isn’t capitalism working – the global economy is growing, and poverty is declining?

The number of people living in extreme poverty – on less than $1.90 a day – has been falling globally. This is something to be celebrated. However, the rate at which extreme poverty is falling is slowing and in some parts of the world the number of people living in extreme poverty is actually rising. But this is only part of the story.

Almost half of humanity is still living on less than $5.50 a day. They are not living in extreme poverty but they are still very poor – struggling to keep their heads above water and just one medical bill away from extreme poverty. It’s this much bigger group of poor people who are seeing their wealth decline.

The problem is that the benefits of economic growth, of wealth generation, are not shared equally. Wealth created in today’s economies is captured by those who are already wealthy, and the poorest in society see little benefit.

That is why billionaire fortunes increased by 12 percent last year – or $2.5 billion a day – while the 3.8 billion people who make up the poorest half of humanity saw their wealth decline by 11 percent. In short our economies are broken. That is why Oxfam is calling for governments to build new economies that work for everyone and not just a privileged few.

3. Aren’t low taxes a good thing? Won’t raising taxes will put a break on economic growth and job creation?

The idea that low taxes for the wealthy is good for economic growth and job creation has been widely questioned. Even the International Monetary Fund are saying that there is ample scope for redistribution without hurting economic development

It simply does not make sense that the tax bills for the very richest people and corporations are systematically lowered while vital public services such as healthcare and education – that benefit society as a whole – are struggling for want of funds. We need more schools – not more super yachts.

4. What’s wrong with private schools and private healthcare. Public healthcare and education is very poor quality in many countries – private services give people an alternative?

Lack of investment in public services does mean the quality of education and healthcare they provide is very poor in many countries. However, the solution to this problem is to invest more in public services – not outsource to the private sector.

The private sector doesn’t deliver for the poorest in society because there is little incentive for private companies to provide services for people who can’t afford to pay for them. Moreover, private healthcare and education providers are often subsidized by governments, which means public money is often diverted to serve the needs of the wealthiest in society – at the expense of the poorest.

For example, a public–private initiative to build a hospital in Lesotho ended up consuming, as much as 51 percent of the countries total health budget in 2014 – depriving clinics in rural areas of much needed funds. Only by investing in free universal public health and education services can governments deliver good-quality healthcare and education for all.

5. Oxfam’s calculations are wrong – the data has holes in it and the way wealth is calculated means people on high incomes but lots of debts are counted amongst the worlds poorest?

Oxfam bases its calculations on the best data available at the time – Credit Suisse’s annual Global Wealth Report and the annual Forbes Billionaires list. Of course the data is not perfect – the quality of data available varies from country to country but it is being improved and expanded every year.

One of the big problems is that the very rich often hide their wealth offshore to avoid tax – which means that their fortunes are likely to be significantly underestimating. Despite these problems, most experts agree the data is good enough and provides a relatively accurate overview of how wealth is distributed globally.

It is equally true to say that the way wealth is calculated means people who are high earners with large debts – such as graduates with big loans – are placed in the same category as people who are very poor. However this is a tiny fraction of people globally and has little impact on the figures.

The vast majority of people at the bottom fifty percent are very poor people who are really struggling to get by. Those who are in debt are, overwhelmingly, poor people who are forced to borrow to stay afloat – think of single mothers having to go to loan sharks to pay medical bills in the US or small holder farmers borrowing at huge interest from money lenders in India.

No data set or methodology is ever 100 percent perfect and figures may change slightly from year to year as new and better data becomes available.

However, the overwhelming and consistent pattern we are seeing is that the gap between rich and poor is growing ever bigger and that small number of people are accumulating vast fortunes while paying relatively little tax, even as vital public services such as healthcare and education are crumbling for want of funds.

6. Inequality doesn’t fuel poverty.

The evidence and experience of millions of people around the globe suggests it does. In countries like Kenya a child from a rich family will spend twice as long in education as a child from a poor family – and so will be much better placed to secure a well-paid job when they leave school.

By closing the gap between rich and poor – more fairly taxing wealth and investing the proceeds in education and healthcare for all – governments can ensure no child misses out on a better future simply because they are poor.

The World Bank agrees – it says unless we close the gap between rich and poor, extreme poverty will not be eliminated and 200 million will still living on $1.90 a day in 2030.

7. Isn’t Oxfam getting too political?

The decisions that governments make have a critical impact on people’s lives. So, in that respect, poverty is political. People across the globe are losing faith in our political system because governments put the demands of big business and the super-rich over the needs of their own citizens.

It does not make sense that the tax bills for the very richest have been systematically lowered for years, while vital public services such as healthcare and education – that benefit all of society in so many ways – are struggling for want of funds. This is not a question of politics or ideology – it’s a matter of justice and human dignity.

Savelugu Girls Model School in Ghana, one of several model schools that are funded and administered by the local authorities. Photo Lotte Ærsøe/Oxfam Ibis.

Conventional wisdom about taxing wealth is shifting, writes Didier Jacobs, Oxfam America’s Senior Policy Advisor. Long dismissed as unfeasible, and frowned upon as politically incorrect, radical ideas are now gaining ground.

The new star on the left of the US Democratic Party, Alexandria Ocasio-Cortez, suggests increasing the top income tax rate to 70%. That sounds more radical than Bernie Sanders’ plan, which already moved the goal posts in 2016. Refreshingly, Ocasio-Cortez’ idea was welcomed by center-left economists like Krugman and Summers in mainstream media such as the New York Times and CNN.

Let’s move to the center-right. Last year, the IMF and the World Bank organized a conference on formulary apportionment – a revolution in corporate taxation. The previous year, they discussed taxing wealth. The former published research concluding that most countries have ample room for redistribution without hurting economic growth. The Economist magazine, billionaires and Patriotic Millionaires have all called for significant tax reforms that would raise tax on the wealthy.

Radical ideas abound. Combining formulary apportionment with a minimum effective rate could raise proceeds from corporate income tax, borne mainly by rich people. Taxing gifts as ordinary income, the lifetime gift tax, the Financial Transaction Tax, or a global wealth tax could all raise more revenue from the richest in our society.

The needs are great. In our report published this week, Public Good or Private Wealth?, we show how governments fail to provide adequate public services; leaving millions of children out of school and leading to millions of premature deaths. Piecemeal private services punish poor people and favor elites.

Women are hit hardest, and are left to fill the gaps with millions of hours of unpaid care work when public services fail. Oxfam estimates that taxing an additional 0.5% of the wealth of the richest 1% could raise more money than it would cost to educate the 262 million children out of school, and provide healthcare to save the lives of 3.3 million people.

The shift in conventional wisdom about tax recognizes that extreme inequality is largely driven by what economists call “rents” – windfall income that does not compensate productive activities. Inheritance is a rent, as well as real estate wealth to a large extent. So, too, are executive pay and the super profits derived from natural resources, IT and other corporate monopolies.

The concept of rents blunts several major arguments against taxing the rich more. Because rents do not reflect productive activities, taxing them does not harm economic growth. And because rents are not the product of effort, they are morally indefensible for believers in meritocracy.

A final claim is that taxing wealthy individuals and corporations just does not work because of tax evasion or avoidance. The super-rich are hiding at least $7.6 trillion from tax authorities and dodging an estimated $200 billion in tax revenues a year. Multinational companies exploit loopholes in tax codes to shift profits to tax havens, costing developing countries an estimated $100 billion in lost revenue a year.

But change is afoot here as well. Following public anger in the wake of the 2008 financial crisis and repeated scandals, governments have started to crack down on offshore finance. The Obama Administration took on Swiss banks’ secrecy, and won. There is now a global system in place allowing tax administrations to exchange information about non-residents’ financial holdings, which has reportedly helped recover $93 billion in tax revenue between 2009 and 2018. The OECD has implemented a process to close some of the most notorious corporate tax loopholes, and the European Union is blacklisting corporate tax havens.

A lot of big cracks remain in the system: there is still little transparency around corporate tax avoidance, tax planners are inventing new ways to hide personal and corporate wealth, and tax dodgers have little to fear from those governments that are either unwilling or lack the capacity to prosecute them. We need a new comprehensive multilateral agreement to put an end to tax dodging.

Nevertheless, our report shows that a number of countries are already managing to raise significant resources from taxing wealth, so there is no excuse for governments not to take action now. Where there is a will, there is a way. Sustained popular mobilization and global cooperation can put an end to tax evasion and avoidance. This will give the financial resources needed to provide education, health care and social protection for all.

Didier Jacobs, Oxfam America’s Senior Policy Advisor.

I am a practitioner of capitalism and a member of the 0.1 percent.

I have started or funded 37 companies.  I was the first outside investor in Amazon. I have been rewarded obscenely for my success, with a life that the other 99.99 percent of Americans can’t even imagine. Yet the most important lesson that decades of experience at the heart of market capitalism has taught me is that morality and justice are the fundamental prerequisites for prosperity and economic growth. Greed is not good.

The problem is that almost every authority figure – in economics, politics and the media – tells us otherwise. You will hear plenty this week, as the global elite converge on the Swiss mountain resort of Davos to discuss the challenges facing our economies and our world.  Yet, I can guarantee that despite all the talk, there will be no substantive questioning of the immoral foundation of our modern economies.

The current inequality crisis is the direct result of this moral failure. Our exclusive, highly unequal society based on extreme wealth for the few may seem sturdy and inevitable right now, but it will collapse. Before long, the pitchforks will come out and the ensuing chaos will benefit no one. Not wealthy people like me – and certainly not the poorest people who have already been left behind.

To avert this existential crisis, we must drive a stake through the heart of the neoliberal religion that instantly rewards greed at the expense of our future. We must replace it with a new economic framework that recognises that justice and inclusion are not the result of economic prosperity, but rather the cause of economic prosperity.

Only a society that seeks to include all its people in the economy can succeed in the long term: no company, and certainly no billionaire is an island.  We owe our wealth to society – to the millions working each day for us at home and across the world, often for poverty wages.  We owe our fortunes to governments, who provide the education, the infrastructure, and the research investment on which we build our empires.  None of the companies I have invested in would have been able to function without this.

A fundamental prerequisite for a more just society is that the wealthiest should pay their fair share of tax. However, as Oxfam’s inequality report, “Private Wealth or Public Good”, demonstrates, this is not happening. Here in the United States, the richest in society – people like me – have just benefited from one of the biggest tax cuts in decades.  Meanwhile our public schools are crumbling, and our healthcare system continues to exclude millions, leading to huge pain and suffering. The top rates of tax on the wealthiest people and corporations are lower than they have been for decades. Unprecedented levels of tax avoidance and evasion ensure that the super-rich pay even less.

There can be no moral justification for this behaviour beyond a discredited neoliberal dogma that if everyone maximises their selfishness, the world will somehow be a better place: that ever-lower taxation on the richest will somehow benefit us all; that health and education left to the mercy of the free market, available only to those who have the money to pay for them, is somehow more efficient. It has no economic justification, either. As Henry Ford famously identified, you can’t grown a business or an economy if people are impoverished.

I have absolutely no doubt in my mind that the richest in our society can and should pay a lot more tax to help build a more equal society and prosperous economy. As Oxfam shows, a fairer tax system could help ensure that every child gets an education, and that no one lives in fear of getting sick because they can’t afford their medical bills.

Ultimately it is our humanity, not the absence of it, that is the true source of economic growth and a flourishing civilization. This is not just an imperative for activists and academics but for all of us – including every billionaire. It is no longer a question of whether we can afford to do this but rather whether we can afford not to.

Nick Hanauer is an American entrepreneur and venture capitalist.

Every January I get a glimpse into a different world.

A world of billionaires, of business and political elites, cosying up to one other in the Swiss mountain resort of Davos for the Annual Meeting of the World Economic Forum.