Almost half of the population feels poor and its impact on its economy. rise interest rates (69%) and persistently inflation (55%). These are some of the conclusions reached by the IESE professor’s book. José Luis Nueno “Everything is terrible, but I am fine (Spaniards in the cost of living crisis)”, based on 19 million purchases from 250,000 consumers published by the AECOC association and drawn from a Fintonic and Intent HQ database. The study concludes that “an odd dichotomy between personal optimism and social pessimism has been produced” by rising interest rates and inflationary pressures. People tend to value their own situation more than general conditions, but the truth is that Spanish society is clearly impoverished by rising interest rates and price increases.
Nueno, the majority of Spaniards spend more than you earn. Therefore, it draws a slightly darker future scenario than today. According to him, “the social polarization is highlighted, where both brands and luxury goods and the cheapest shops are growing. The data are clear on this: last year inflation was 20% higher (one-fifth) for citizens belonging to the lowest income bracket (less than 9,215.6 euros) relative to those in the highest quintile. Therefore, the first and second lowest quintiles lower their spending levels, while those in the lowest quintile increase their spending.” For entrepreneurs, it’s helpful to know that spending on luxury goods (including spending by returning Chinese and Japanese tourists) is forecast to increase by 12% in Europe this year. Companies whose products don’t target the richest or lowest income will have a harder time.
lower income families
The increase in interest rates has a direct impact on Europe and Spain. Experts warn of one obvious thing, but it seems that no one sees it as a direct consequence in one’s own person or family. Rising interest rates are struggling with wage freezes in many companies and industries, increasing the segment of the population with much less than average income. At the same time, spending capacity of the richest because of the tendency of distressed companies to moderate the prices of goods and services. If the dishes in your kitchen pile up and there aren’t a dozen of the same chairs, the axiom you’re from the lower class is nothing but a joke. But the answer hurts the most. If no one has been paid to help with household chores for a long time, or if the bank account has dropped to unknown levels in previous years, you’re probably in the richest quintile. The person is poor despite not knowing or admitting it, but the consolation remains that others are worse off.