It is already common knowledge that those affected by poverty have to cut back on their future plans and save money in many areas of life. Now a study by the Poverty Conference has concluded that the so-called middle class is also taking “steps backwards” as a result of inflation. People reduce their social contacts and leisure activities to save money.
The study interviewed 41 people affected by poverty and 17 people from the lower middle class. This concerns people who have a maximum of 1,392 euros per month as a single household, or people who have a maximum of 1,800 euros per month. The content was how they experience their daily lives and deal with the increased prices. A key result: respondents save on food, leisure activities, mobility and even healthcare costs.
Cents are counted
Study author Evelyn Dawid said of those affected by poverty: “The slightest additional financial burden always upsets their equilibrium – if there is one at all. The reality of their daily lives is balancing bills and expenses.” For example, one respondent switched from a public coffee machine to a coffee machine that was only a few cents cheaper.
The lower middle class is feeling the effects of inflation due to a decline in quality of life, collapsing plans for the future and reduced social participation. For example, these respondents limit their social contacts and leisure activities. This is unusual for her.
To cope with inflation, respondents are working more, using savings, taking on debt, getting help from family, friends, neighbors or using emergency aid from various institutions. According to the survey, the one-off payments from the federal government were mainly used for everyday living, for example for washing machines, dishwashers or clothes.
Search for perpetrators
Another result of the research conducted by the Poverty Conference on behalf of the Ministry of Social Affairs was that both groups appeared angry and suspicious. They’re looking for someone to blame. Politicians and political institutions are eligible. Migrants, asylum seekers, war refugees from Ukraine and those receiving more social benefits are seen as competition for cheap goods.
The Ministry of Finance sees no loss of purchasing power
Despite these results, the Ministry of Finance sees no loss of purchasing power. Austria was said to have the third highest real disposable income in the EU. The government has also specifically reduced the costs of electricity, for example.
However, criticism of the government came from the SPÖ, the FPÖ and the NEOS. It is clear that one-off payments would not solve the problem, said SPÖ social spokesman Josef Muchitsch. “Affordable living should be included in the Constitution as a state goal.” One-off payments would drive up inflation, said NEOS economic and social spokesman Gerald Loacker, who again pushed for job tax cuts.
FPÖ social spokeswoman Dagmar Belakowitsch called, among other things, for a massive reduction or even a complete suspension of VAT on basic food, energy and fuel, as well as the tax on mineral oils.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
