The widening gap between 1 per cent and the rest of the population has often been pointed out by experts and information experts, especially in recent years. According to Oxfam’s latest report, the world’s ten richest men have doubled their fortune in Covid-19, while 99% revenue has decreased. Nothing new on the horizon Miraconcha de San Sebastián. But Oxfam also says that social inequality is much more diverse than that symbolic distribution: that we have to take into account gender, race, territory and other factors.

In Europe, cracks are also increasing in the broad sectors that underlie the social ladder, and can increase further, especially among citizens who can and do not have a small wealth reserve or savings in the face of the economic crisis. According to a study by the University of Paris 8, according to age, profession and social class, economic vulnerability is very different. Besides income, one of the most important variables is property. “Given the inflation that is choking the family budget, the property reserves will make a difference,” they conclude in the study.

Inflation reached 10% in the euro area in September, according to Eurostat, eight decimal places more than in August. The European Bank has increased interest rates (see graph of the article that forms part of this report), following the liberal dogma of reducing consumer demand and reducing prices at the expense of unemployment, and the EU governments have the issue of taxation on the table. Some want to tax energy companies that are making huge profits by increasing energy costs more, Brussels wants to raise EUR 140 billion, or to bite huge fortunes, aligning itself with the idea of tax the rich… while others do the opposite. Or, if not, in the same week they announce both, such as Liz Truss, UK Prime Minister.

After this schizophrenic debate, in most cases it is not intended to change the economic system, but to keep the same model that makes it richer. Elon Muskiz has left with the millions of euros he has paid in taxes in 2021, but he did not say that that amount represents only 3% of his good, 315,000 million euros. Taxes for the rich do, but for them to remain rich. All normal in the viewpoint of Davos.

And meanwhile, increasing inequality and poverty. Also in ours. In Araba, Bizkaia and Gipuzkoa, for example, since 2008 the percentage of population in extreme poverty has doubled (6.1%), Idoia Mendia, vice-president of the Basque Government a few days ago V. He approved it in the presentation of the Social Inclusion Plan. In Navarre there are 56,262 people in this situation (8.6%), and in the Northern Basque Country there are also thousands of people below the poverty level, about 17,000, according to the Basque College Precariousness Observatory. You don't have to be a magician to know that the frightening increase in mortgages and shopping cart will fall into that hole to thousands of others, because they don't have enough savings, wealth or mattress to save themselves from that destination.

Gaps in patrimonial poverty

“When we look ‘down’ at heritage differences, we can see the influence of lack of savings according to class and age. The data is wonderful.” This is what sociologist Nicolas Duvoux wrote in his Twitter account. Duvoux and “Des classes dépossées: He wrote the article “Pauvreté en patrimoine et érabilité économique” (Expropriated Classes, Patrimonial Poverty and Economic Vulnerability) on the website of the cooperative La Vie des Idées, along with the student of the same university Senmiao Yang. It explains that, in addition to the income among citizens, the lack of savings generates important differences depending on the circumstances.

Based on a European survey: Household Finance and Consumption Survey, conducted in 22 countries, the latest wave dates back to 2017. This survey is unique to collect data on the heritage and savings of families and allows comparisons to be made by wealth, income, social class and age.

The prestigious French economist, Thomas Piketty, who has investigated social inequalities, has rigorously criticised such surveys, saying that the data of those with a lot of wealth are not reliable. Piketty in his book Capital in the 21st century masterfully explains how the concentration of wealth was from the 19th century and how it was left in the hands of a small elite. But researchers at the University of Paris 8 point out that in the current context, the “heritage of citizens in the middle class” must also be taken into account to explain social inequalities.

This heritage has been called “liquid asset”, which would then be available to a citizen or family in the event of a serious economic shock (loss of employment, separation of couples, accident…). Therefore, housing or vehicles have not been taken into account. In other words, they are savings that they really would have at their disposal.

The Organisation for Economic Cooperation and Development (OECD) notes that a person is poor when unable to stay with his liquid asset three months above the poverty barrier, which the OECD has set at 60% of the average income. Duvoux and Yang publish a disturbing graph (see below) that shows the differences between each profession: A small 50-year-old could have an average duration of three years and nine months with his wealth, except for other aids, in a situation of extreme gravity, without falling into poverty; an unemployed person barely three months. The differences are also significant according to age: A qualified worker aged 50-64 would keep it for nine months, while an 18-34 year would keep it for only two and a half months.

In calculating existing poverty, institutions normally take into account the income or income of citizens. For example, there would be 15% economic poverty in the French State and 21% in the Spanish State. But patrimonial poverty is much more serious. 46.7% and 49.2% respectively. According to the study, in most European countries half of the population would not last three months with savings, not even in a “rich” country like Finland: 53.6% are heritage poor, despite the many public services and aid that Finland sponsors.

The age gap is also enormous, to the point of representing a chasm: In the Spanish state 70% of young people are in patrimonial poverty, in the French state 58%, in Germany 65%… “This shows that the importance of the family for social protection and the degradation of young people goes hand in hand”, explain in the article of La Vie des Idées.

The conclusion is clear: we cannot talk about poverty without taking into account the lack of savings or citizens' heritage, because the data show that economic vulnerability is much deeper, up to three times more than is said. “Why am I interested in this? – says Duvoux – Because inflation will force low-income families to use their scarce savings. Urgent current structural data”.

With the rise of Eurybor and the rise in the prices of unemployment, petrol and commodities, the covert poverty of this group of people we can call “the class of expropriated” will soon surface. But in the meantime, the old ones have just been sold in the Frankfurt offices.