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This is shown by a new study by the Poverty Conference on behalf of the Ministry of Social Affairs. While those affected by poverty are being pushed further to the margins of society, people from the lower middle class are now also falling back and giving up plans for the future. Poverty Conference social expert Martin Schenk urges us to offset inflation, fight poverty and curb prices.
In the qualitative study, 41 people affected by poverty – those whose household income is below the at-risk-of-poverty threshold (under 1,392 euros per month for single-person households) – and 17 people from the lower middle class (maximum 1,800 euros per month for single-person households) were interviewed in discussion groups how they experience inflation in their everyday lives and how they deal with the increased prices. Savings were made on food, leisure activities, mobility and health. In order to cope with the increased prices, subjects worked more, used up savings, went into debt, relied on the help of families, friends and neighbors or used emergency aid from various institutions.
Those affected by poverty can only do so much
According to the study, people affected by poverty can only cut back on a little because they already had little before inflation began. They turn “very small wheels,” which pushes them further up the social ladder. “The slightest additional financial burden always upsets their balance – if there is one at all. Their everyday reality is to juggle bills and expenses,” study author Evelyn Dawid is quoted as saying in a broadcast. One test subject, for example, switched from a public coffee machine to one that was a few cents cheaper.
According to the study, the lower middle class has “more to lose” and is feeling the effects of rising prices due to a reduced quality of life, collapsing plans for the future and reduced social participation. This is unusual for them, as they had previously lived with a feeling of economic stability and security. The lower middle class is now taking big steps backwards due to price increases and is massively restricting leisure time and social contacts.
Angry, suspicious and looking for someone to blame
Both groups appeared angry and suspicious and looked for someone to blame. According to the study, this also feeds a belief in conspiracy. People were particularly suspicious of political institutions and politicians. The study also showed fractures in society – there were critical and aggressive comments in the conversations against, among other things, those who have more, against immigrants, those entitled to asylum, war refugees from Ukraine, who were described as competition for inexpensive goods and against those who Receive social benefits that you do not receive yourself. In addition, shame would constantly accompany those affected.
The one-off payments from the federal government were mainly used by those affected for everyday life, paying bills or balancing the deficit on their account. In many cases it also went towards necessary special expenses – for example for washing machines, dishwashers or clothing. However, only one-off payments with larger amounts were noticed, only the climate bonus was known to everyone.
Compensating for inflation only helps where “everything was ok” before, says Schenk. “But where there have always been massive gaps and undesirable developments, inflation is now coming into play.” The inflation must be balanced out, prices must be curbed and the problems from before must be solved. A focus in preventing poverty should be on the lower middle class.
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