The fight against poverty is generally considered moral and praised for its effects at the individual level and on social cohesion. But it is also relevant to improve public finances and economic growth, according to a study published on Wednesday, October 9, by the Alerte collective, which brings together numerous federations and solidarity associations. “This work shows that inaction is very costly, as is the case with global warming. And that investing to combat poverty pays off: in the medium term, income exceeds expenses”summarizes Noam Leandri, who chairs this group.
The strategic consulting firm Oliver Wyman, who carried out the study in pro bono (without remuneration), claims an innovative approach: “We assessed the global cost of poverty: that is, both direct spending and indirect costs, which turned out to be enormous”explains Jean-Patrick Yanitch, associate director of the strategic consulting firm.
France dedicates 51 billion euros a year to combating poverty, mainly through social works and monetary transfers (social minimums, housing aid, etc.). These transfers allowed 4.5 million people to be lifted out of monetary poverty (disposable income) in 2021. But this still affected 9.1 million people in 2022, according to INSEE, the highest figure reached since the 1990s. And it is not about. Poverty costs public authorities the most: up to 67 billion euros per year, according to the results of the study.
Solve the most serious housing problems
Jean-Patrick Yanitch and his co-author, Théodore Vauquier, drew on academic literature published in France and abroad on this topic, which their “still seems fragmentary”to calculate the additional costs generated by this persistent poverty in terms of health, education as well as security and justice. And they added the deficit in social security contributions and the value added tax, linked to the withdrawal from employment – and consumption – of a majority of poor people of working age.
“These results show that we should not fight against the current public deficit by reducing [les moyens alloués à] the fight against poverty. We would risk increasing the indirect costs of persistent poverty, which are more significant! »estimates Noam Leandri.
The study recommends, on the contrary, an additional effort to combat poverty: adding 18 billion euros in monetary transfers, so that no one is left below the current poverty line (set at 60% of the average income, that is that is, 1,216 euros per month). for a single person), develop employment support and, finally, resolve the most serious housing problems. A policy that the study estimates at 28 billion euros in the first year, a cost that would then decrease throughout a lasting escape from poverty towards employment.
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