Addressing the Economic Crisis: The Urgent Need for Effective Measures to Improve Social Minimums in France

2023-10-15 15:16:24

With insufficient social minimums and a very high level of inflation, the economic situation of many French people risks getting worse if no effective measures are taken. This is what the associative collective Alerte and the economist Pierre Madec revealed in a note published Thursday October 12 for the Foundation Jean Jaurès.

The rate of revaluation of social minimums criticized

The economist Pierre Madec and Noam Leandri, who chairs Alerte, a collective of associations against poverty, therefore published an article, Thursday, October 12, on the Foundation’s website Jean Jaurès in which they alert on the situation of French people benefiting from various government aid, such as active solidarity income (RSA) or the specific solidarity allowance (ASS). They deplore the fact that households have suffered a sharp increase in prices for two years which has not translated into an equivalent increase in social minimums ».

They believe that the revaluation experienced by social minima is disproportionate to the current rate of inflation. “ In April 2023, the increase in social minima was only 1.6% while inflation should be around 5% this year », they are surprised, recalling that the government justified “ this under-indexing due to the fact that an exceptional increase of 4% had been allocated in July 2022 in advance ».

In this difficult economic situation, Pierre Madec and Noam Leandri therefore find the recently decided revaluation rate unsuitable, as well as the date planned for its implementation (April 1, 2024). “ Ultimately, a revaluation in April 2024 risks being too late given the increase in precariousness which is seen very concretely in the increased recourse to food aid », they warn.

160,000 French people risk finding themselves below the extreme poverty line

To best illustrate the impact of an increase in social minimums to 1.6% and 5%, the collective and the economist relied on the micro-simulator set up by INSEE, Dress and CAF. . They conclude that “ 200,000 people (will find themselves) below the official poverty line (at 60% of the median standard of living) and 160,000 below the extreme poverty line (at 50% of the median standard of living) » if purchasing power continues to plummet and unemployment levels stabilize.

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