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In twenty years, wealth inequalities have skyrocketed

Although the National Institute of Statistics and Economic Studies (Insee) made an effort to clarify, on Thursday, October 17, that the publication date of its report on household income and assets had been scheduled for eight months, it seems appropriate here , since the budget deficit has once again highlighted the idea of ​​​​increasing taxes on the richest. It points out that the French socio-fiscal system has made it possible to contain the clear increase in inequalities in living standards in the last twenty years, but also the increase in inequalities in wealth during the period.

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The average standard of living – how many households are above and many below – is, in mainland France, 2,028 euros per month in 2022, 24% more since 1996, taking inflation into account. Purchasing power has followed the evolution of economic activity (measured by gross domestic product).

The INSEE observes a double dynamic: a fall in income for the lowest income groups and an increase for those with higher incomes, mainly due to higher dividend payments. Before redistribution, the gap between the standard of living of the poorest 10% of households and the richest 10% increased by almost 17% between 2002 and 2021.

But these inequalities have been moderated by the French redistributive system: thanks to the progressiveness of taxes, the targeting of social benefits subject to income conditions, the revaluation of social minimums and the exceptional aid implemented during the health crisis, the relationship between the poorest 10% and the richest 10% remain almost stable in twenty years (3.41 in 2021, compared to 3.39 in 2002). As the inequalities are greater, “Therefore, the impact of the sociofiscal system has been amplified”the study highlights.

In the European average

Despite everything, in twenty years, poverty (standard of living less than 60% of the average level) has not decreased and, on the contrary, remains at its highest levels: in 2022, it affected 9.1 million people who lived in ordinary housing in mainland France and one in five minors, or 14.4% of the population. Which places France within the European average.

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Taking into account the overseas departments, but also people living in mobile homes (caravan type), in collective accommodation (students in U-city, elderly people in nursing homes), as well as homeless people, it is estimated that around 11.2 million people are in poverty in France. And 2 million of them are in extreme poverty, with low income (with a standard of living less than 50% of the median) and serious material and social deprivation. When asked about a list of thirteen everyday expenses, they say they cannot cover seven of them. For example, not being able to afford a week’s vacation away from home, eating a protein meal every other day, heating the house as much as possible. temperature or have two pairs of shoes in good condition. INSEE also points out that a third of people with very low incomes in 2003 are still there almost twenty years later.

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Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
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