A divided world

Have recently been directed to an interesting website http://www.londoncitizens.co.uk/ and a global story comes home to roost in the capital of Great Britain.

A large group of people belonging to the organisation 'London Citizens' have pitched tents on the lawns to take action so all Londoners can own their own home. They are even having a Tent Warming Party this evening to raise awareness!!

"Our homes, our London is a campaign by the capital's largest and most diverse community alliance to enable thousands of low-income workers to afford their own houses and flats through community land ownership. Hard-working people on moderate incomes used to hope to own their own homes in the course of time. Not any more. House prices have risen by 127% since 1997. The average deposit on a house is now over £51,000.

London is fast becoming two cities: the property owners and the rest. The average homeowner has over £90,000 in equity; the average non-homeowner has £800 in savings.

Now I say, this has been true throughout history!!! Its just that its being felt in the developed world now. Historically, economics has had two driving variables - capital and labour. In the world of capital - you own assets and dependence on labour is minimal. In the world of labour - you slog and slog and slog and then you slog some more to make ends meet. Want to see the visible effects of capital - visit dubai!! You want to see what a world driven by labour looks like? Visit Dhaka!!

The developed world has for centuries been a world where everyone was reasonably well off and therefore everybody could afford and own basic assets. The recent asset bubble however has pushed prices so high that even the developed world is having to work for its assets now and they are not available as a right any more.

Welcome to the real world Londoners...Its not that simple here on. Assets are not a right. They have to be earned.