Home > Uncategorized > Poverty in the EU: increasing in the Eurozone, decreasing outside of it

Poverty in the EU: increasing in the Eurozone, decreasing outside of it

Material poverty in the Eurozone is increasing. In Ireland, Greece and Latvia (in 2011 not yet a Eurozone member but surely a wannabe) one year changes were nothing short of dramatic. Poverty in the EU outside the Eurozone is decreasing.

Severe material deprivation rate, 2010-2011 (%) – Source: Eurostat  (ilc_sip8)

Poverty

These data are recently published by Eurostat and are about real poverty, not relative poverty, as they show severe material deprivation, a non-income based estimate of poverty (believe me: the specialists estimating these data have thought long and hard about this definition, so you can ask questions but you’re only allowed to criticize it when you’ve read tons of background information):

An analysis of material deprivation provides a more absolute rather than a relative analysis, as used for income poverty. The definition of material deprivation is based on the inability to afford a selection of items that are considered to be necessary or desirable, namely: having arrears on mortgage or rent payments, utility bills, hire purchase installments or other loan payments; not being able to afford one week’s annual holiday away from home; not being able to afford a meal with meat, chicken, fish (or vegetarian equivalent) every second day; not being able to face unexpected financial expenses; not being able to buy a telephone (including mobile phone); not being able to buy a colour television; not being able to buy a washing machine; not being able to buy a car; or not being able to afford heating to keep the house warm. The material deprivation rate is defined as the proportion of persons who cannot afford to pay for at least three out of the nine items specified above, while those who are unable to afford four or more items are considered to be severely materially deprived

The data show that between 2010 and 2011 material deprivation increased, especially in countries inside the Eurozone (or which were trying to get into the Eurozone). Including Germany. Excluding France.

At the same time, unemployment increased and investments went down in the EU and especially inside the Eurozone, which means that income and production were clearly below capacity. Poverty indeed is a choice. Not an individual choice – but a Troika one.

I have to push this: austerity darlings Ireland and Latvia did especially bad, even when compared with very comparable countries like Estonia and Lithuania and with somewhat comparable Poland and even with (very poor) Bulgaria and Romania. How long will it take before Latvia has the highest rate of poverty of the EU? Not remarkably, developments in France were much more positive than in Germany and poverty in France is by now actually lower than in Germany (though the difference is no doubt within the margin of measurement error). Any questions about the real austerity agenda?

  1. January 19, 2014 at 9:39 pm

    NOTE: It is simply impossible that statistics generated with conventional models & assumptions that conform to the standard model economics paradigm (i.e.; conflicting/competing theorems, delusions, etc.) could ever predict the realities and consequences beyond the scope of the theorems and the range of mental limitations imposed by the conventional fixations, etc. We cannot See the realities outside The Box while hiding from them inside it. Right? So, as a case in point, the damage rolling across Europe does not preclude the probability of seemingly “new” cycles of devastation elsewhere in the near future. The numbers & delusions generated by Banksters and their econo-Wonk sycophants are no more inclusive of biological, psychosocial, and environmental realities than Standard Model speculations on God-particles, etc. The Bankster Model is not the “economy” and denial of the primacy of the biosphere and human culture-as-a-whole as the context of reality-based economics does not invalidate reality-as-is. For more on this topic, see: “Neverland” (starring Johnny Depp).

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