Friday, May 16, 2008
Inflation is 2.5%. The PM says so.
New York Times: For Europe’s Middle-Class, Stagnant Wages Stunt Lifestyle
“In France, when you can’t afford a baguette anymore, you know you’re in trouble,” Ms. Renard said one recent evening in her kitchen, as her partner measured powdered milk for their 13-month-old son, Vincent. “The French Revolution started with bread riots.”
“The problem is that if your salary rises more slowly than the cost of products you buy on a daily basis, you feel poorer every day.”
“When I started working at 23, I earned almost the same wage that I earn now,” said María Salgado, a 37-year-old director of television documentaries living in Madrid. Fourteen years ago, her monthly salary of about 1,200 euros ($1,873), bankrolled a full social life. No longer. “The well-to-do middle class has become the tight middle class,” she said. “I’m surprised we haven’t started a
11 Comments
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1. enuii said...
Good article that deserves some comment and discussion. Read a similar one last weekend and have come to the conclusion that this is the Big Flaw of the Euro which will drive new lower figures for average living standards across Europe. Those on the minimum wage may well not notice the difference but the people whose occupations that previously commanded a reasonable wage will. The discontent currently simmering in the Club Med countries will spread to the industrialised northern states when people put 2 and 2 together and realise that low interest rates and cheap debt do not equal wealth and sustainable economic growth.
2. Davidg said...
> Their combined annual income of 40,000 euros lands Ms. Renard, a teacher, and Mr. Talpot, a postal worker, smack in the middle of France’s middle class.
40KE is a very good income for France and should be suffient to live on outside of Paris.
The newly poor middle class in France have been dubbed the 'ni-nis' - not rich, not poor. The typical salary is 1500-1800 euros per month (what an experienced teacher would get). You are not poor enough to get benefits but can't even afford to take a holiday. With houses costing 200-300K to buy in most cities you can see this is a difficult situation for many.
3. lvmreader said...
All together now,
The Euro is a sham
4. Ebob_01 said...
North American/European citizens are now beginning to wake up the fact that they have been fleeced through the inflation scam. Civil unrest will follow, as Westerners watch global corporations rape the resources of the West, winding down employment here, whilst actually inceasing employment in the East. This is the dark side of globalisation. They will NOT stop in the absence of revolution. People it is too late to complain, you must revolt. Educated Fool, London.
5. plato said...
lvmreader @ 2 : EXACTLY
From personal experience I can tell you the Spanish 'middle' classes used to live well getting good quality and real value in their standard of living. In real terms they are much worse off. Maybe they have expensive property (for now) but who can eat houses etc?
I dare say this has happened right across the Med' Region. Even the peasant farmers,although materially 'poor' were rich in the enjoyments of life with good food and social pleasure.
Now the older generations look back and sigh ! The younger think money is everything and debt is a way of life. They have been actually educated this way, if you can call it education.
This kind of debt control is surely breakng down society and it surprises me that within a relatively short time these countries have changed so much after literally thousands of years. I cannot see them accepting this situation for much longer.
6. malct said...
would it help to take some pressure off this evolving website if admin created at system whereby posters could communicate one 2 one but still annon?
just a thought.
7. plato said...
malct @ 4
You'll probably find admin will say the forum is for this purpose, in as much as getting as close as possible to one 2 one communication.
It is probably not a feasible system otherwise on such a scale.
I imagine that you are concerned with not upsetting conventional posters by 'apparently' digressing and you are also taking into account how busy the postings have become.
apologies to Ivmreader for not sticking to the subject briefly.
8. malct said...
5. plato said...
malct @ 4
"I imagine that you are concerned with not upsetting conventional posters by 'apparently' digressing and you are also taking into account how busy the postings have become."
Plato you have me sussed - but I have to admit that to the whole world on this blog because that's the way it is structured. That's OK but not ideal - there are security issues. We the people are at war with the VIs and any dumbsh!t who doesn't realise that deserves what they intend for all of us.
I know this blog is monitored by MI5, MI6, Mossad, CIA and much worse - but I don't give a monkeys - there is too much at stake and they can't shut us all up. Not even little prof who doesn't understand he is being used.
OK this is controversial - yup - facing up to reallity is hard - s2r1 - is the soft sell, the reallity is more painful
Sorry plato I've been reading too many newspaper reports on house prices crashing - lol
9. Plato said...
This article is a good post and deserves more comment, especially from euro supporters.
This strength in the euro coupled with the real inflation that affects working people and business throughout the Eurozone is probably THE most damaging event to the Euro population's standard of living. Most of the member countries cannot cope with such a strong currency.
Even Germany will succumb to the uncompetitiveness of a high value currency.
I'm not saying the euro currency is wrong. I'm saying it's over-valued.
The immediate question will be : What currency do you propose to replace it then?--- Why?---- I am only saying it is overvalued.
Therefore it should be the main concern of the ECB to bring it into line, if they are really concerned with the wellbeing of the Eurozone.
10. jack c said...
6. malct said...I know this blog is monitored by MI5, MI6, Mossad, CIA and much worse
Please expand upon this comment
11. enuii said...
Malct, you are spoiling the flow of things, go away and sulk in the forum.