The Wealth Divide Is Growing and Threatening

MarketsETF Trends

By Chris Skinner via Iris.xyz

A final reflection on the way of the world before getting back to FinTech and banking. Whilst on holiday, we became interested in buying a property in Dubai, and began making enquiries. It soon transpired that this would be a dream, as the average price of a villa on the Palm was over $4 million, which is not the sort of loose change I’m carrying today, even with my cryptocurrency investments.

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It then struck me that in many of the most desirable cities of the world, the average property price is over $1 million. In London, it’s $1.5 million in most boroughs, with the most elite areas like Kensington averaging over $7 million. The same is true in Moscow, Hong Kong, New York and most big cities. Who has $1 million to spare?

As I reflected on this, I came to a realisation that the 1% are taking over the world, and pricing the 99% out of it. The 1% are 76 million people. The 99% are the 7.6 billion left over. The 1% are those who can walk into a new off-plan development like the Royal Atlantis Dubai, and buy three off-plan apartments for $10 million as a trophy investment (which someone did last week). That’s how it goes.

This extreme is widening because many of the 1% are buying property, and have been for a long time. It means that the 99% and their children, are finding it harder and harder to find anywhere to live. This extreme has been widening for some time, and governments seem to be ignoring it.

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