The average worker can no longer afford housing or a new car
The OECD measures the middle class by income, but fails to capture that housing and a new car have slipped out of reach of the average worker. Data and...
English · Original discussion in Spanish · Published
The middle class is losing its home and its new car
How much does an average worker in Spain need to earn to buy a house and a brand-new car? Increasingly, the answer depends not on their salary, but on what their parents can contribute. Economic analyses confirm that the middle class is in decline, but perhaps the statistics fall short: the OECD defines it as households with disposable income between 75% and 200% of the national median, and that threshold does not reflect the real sense of decline.
Housing has become the first battleground. Those who do not inherit a flat or have parents to put up the deposit struggle to get by in rented accommodation. And the new car, the classic symbol of social mobility, has been put off for a better occasion. The demographic argument adds further pressure: 1.2 million new residents a year who also want their share of the public services pie. There is even debate over whether Spain, with 30 million inhabitants, would not maintain a similar industrial GDP with a far better per capita distribution.
Some celebrate capitalism as a wealth-creating machine. The machine, however, does not seem to share the wealth with those who only have their payslip. Between inheritances, impossible mortgages and rising prices, the middle class learns to cope. With a bit of luck, the will arrives in time.
How much does an average worker in Spain need to earn to buy a house and a brand-new car? Increasingly, the answer depends not on their salary, but on what their parents can contribute. Economic analyses confirm that the middle class is in decline, but perhaps the statistics fall short: the OECD defines it as households with disposable income between 75% and 200% of the national median, and that threshold does not reflect the real sense of decline.
Housing has become the first battleground. Those who do not inherit a flat or have parents to put up the deposit struggle to get by in rented accommodation. And the new car, the classic symbol of social mobility, has been put off for a better occasion. The demographic argument adds further pressure: 1.2 million new residents a year who also want their share of the public services pie. There is even debate over whether Spain, with 30 million inhabitants, would not maintain a similar industrial GDP with a far better per capita distribution.
Some celebrate capitalism as a wealth-creating machine. The machine, however, does not seem to share the wealth with those who only have their payslip. Between inheritances, impossible mortgages and rising prices, the middle class learns to cope. With a bit of luck, the will arrives in time.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (13 replies).
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