The Saddest Face of Catalonia's Degradation: Poverty

In retrospect, Catalonia hasn't experienced its best times. The pro-independence decade mainly served to leave a significant residue of social discontent and, even more, to cover up the region's problems. One of the most pressing issues is that Catalans are becoming, objectively, poorer.

This has been reflected once again in the data, this time, the data from the first edition of INSOCAT, prepared by the Catalan Social Action Entities. In line with many past reports, INSOCAT indicates that nearly 1,381,000 people live at risk of poverty or social exclusion in Catalonia. Although the most concerning aspect is the trend.

The Problem Is Purchasing Power

If one looks at the unemployment data, the situation is much better now than it was ten years ago, when there was a 20% unemployment rate (now it's below 10%). However, poverty has remained unchanged among the popular classes. The solution to this paradox lies in the fact that the loss of purchasing power (inflation) has been, and is, constant.

We are not, therefore, facing a problem of absolute GDP growth, but of GDP per capita, which is stagnant. This is reflected in the so-called AROPE rate, which allows for a more precise calculation of poverty. In this regard, Catalonia, in line with data from the rest of Spain, has an AROPE rate of 24%, which is double, for example, that of the Czech Republic:

If the indicators of the AROPE rate are broken down, worrying phenomena are observed. Among minors, for example, the rate skyrockets to almost 34% of the population. Meanwhile, foreigners, who have the most precarious jobs, present a rate that doubles that of the native population. This can only lead to social and even ethnic tensions, as recently seen with the riots in Salt.

In another order of things, the number of Catalans who can't keep their home at an adequate temperature is approaching 20% (17.5%). Likewise, the population that can't cope with unforeseen expenses reaches 35.2%. Although it is not often pointed out, the latter implies a significant long-term problem as more and more people can't capitalize, that is, they can't save.

Along with the inflation of food goods, the main cause of the surge in poverty in Catalonia is housing. With real estate prices that continue to rise - despite what the PSC now claims -, housing is a wealth drain for the middle and popular classes. All of this is in harmony with migratory pressure, which strains the housing market and drives down wages for low-productivity jobs, which are the majority.