It is an open social wound throughout Europe and North America.
The reason, to be precise, is what economists call the “cost of living crisis” to convey the gravity of the situation.
This applies to energy prices, consumer staples, and rents and housing prices.
Although the overall rate of inflation has declined, increases from previous years are nevertheless accumulating and in some cases continuing.
Although nominal wages rose, it was less than the increase in the cost of living, leaving most people in the difficult position of running out of money before the end of the month.
In our country it became even more intense because of the large disparity between the level of wages and the cost of living, while citizens increasingly realize that we have become… Europe in terms of food prices, but not in terms of wages.
In fact, in some cases it is found that some products are sold more expensively in Greece than in the whole of Europe. For example, as shown a recent study by the Bank of Greece, our standard products are sold 10% more expensive than the European average.
In addition to all this, which worsens the situation, there are “indirect” problems, which, however, reveal structural failures.
For example, in the field of energy, the way “energy exchanges” work allows for a sudden increase in demand to jump prices in the wholesale electricity market, with the obvious risk that consumers will see “inflated” bills.
The above-mentioned acquire special significance and weight, almost monopolizing the interests of public opinion, precisely because they relate to people’s lives in a direct way.
And citizens in general know what is happening (to them). They know how much they get, how much they give and whether there is anything left. They know if they are living or just surviving.
And precisely because they are struggling, the last thing they need is statements like “everything is not so expensive in Greece”, jokes, accounting alchemy and convenient comparison of sizes that do not correspond to reality in the wallet, especially when they are formulated by the lips of a “competent” .
Instead, action that actually addresses the problem is urgently needed. And I’m talking about action because it’s clear that if we leave it up to the markets to “self-regulate” then we’re just going to see one burst of growth after another.
And measures, obviously, do not mean half measures. That is, it does not make sense to first find out that we have an increase in prices, and then rush to announce subsidies for a limited period, in the logic of “seen and done”. Measures and regulations are needed so that we do not have such price explosions.
If we have e.g. The problem with the way monopolistic conditions are created in markets dominated by multinational corporations, we are looking for ways to prevent them from imposing increases above the European average, even if this means capping the prices of important products.
Why is it not enough to impose fines as it has been shown that they probably do not work as a deterrent given the size of the companies they are imposed on.
Accordingly, if we find that there is a problem with the way “energy exchanges” work, let’s look for different architectures for energy markets that prevent speculation.
Obviously, it doesn’t make sense to make statements like “rents in Spain are much more expensive” when it is clear that we are also going through the first phases of the housing crisis in Greece, because what matters in these cases is not the absolute price, but to see , how comparatively the rent has increased in the country and what part of the average salary they correspond to. And then we will see that in Greece in certain areas we have a jump in rents. Or maybe 600 euros for 50 square meters. in Barcelona it’s a super opportunity, in Greece it’s the reason young workers still live with their parents.
And, of course, we should not forget that at the root of the problem is the fact that in our country, despite any increase in wages, wages, especially when measured by purchasing power, remain at a particularly low level compared to other countries. Europe, while prices for many products are the same and often higher. Therefore, it makes no sense to constantly repeat the conclusion that the minimum wage in Greece has increased above inflation. Because what matters is the level of the average salary, depending on how inflation develops, not in general, but the prices of those goods and services that really determine the cost of living for a family of wage-earners.
This means that beyond regulatory intervention in markets and product pricing, redistribution remains a problem. That is, how a real increase in wages will take place, which will mean a significant improvement in the economic situation and the standard of living of the lower classes and the middle class.
why I repeat, it is not enough just to record positive growth rates, but to ensure participation in it for all, and not for a select few. Until this happens, if inequality widens and poverty increases, we will always face the same failure: “numbers prosper and people suffer.”