Inequality vs. Poverty: a first analysis of the distributive

March 25, 2024 0 Comments

Effects of fiscal policies in Spain Inequality vs. Poverty: a first analysis of the distributive month since the European Commission published the document of fiscal recommendations, the so-called spring package of the European semester. This aims to keep the rules of the Stability Pact in abeyance . Given the current geopolitical situation and its economic repercussions. Despite this, the College of Commissioners calls for a prudent fiscal policy for  and asks Member States to control the growth of public spending. Within this framework, the Commission has also issued a set of reports in which it evaluates compliance with the deficit and debt criteria established in the Treaty by the Member States, Spain being one of them.

This report points out the high external debt

Public and private, and the high unemployment rate, especially among youth, as the main sources of vulnerability of our economy. Although both variables have experienced slight improvements in 2021, macroeconomic projections  France WhatsApp Data point towards an increase in the public debt ratio in the coming years. Given this horizon, it is worth asking about the distributional effects .  Using modeling that combines computable general equilibrium and microsimulation, the impact of drawing conclusions in terms of poverty and inequality.

It should be noted, in summary

That the simulated measures cause a contraction work and capital that is not compensated by public benefits. The analysis of the distributional effects of both  France WhatsApp Number List measures allows us to observe how, under the VAT increase scenario, inequality between households decreases with respect to the starting scenario, because a  households with higher incomes more. income. The increase in prices makes the living conditions of households worse and puts.  Them in a worse situation to face future adverse situations. On the contrary, the reduction of public spending generates a situation of greater inequality.  Increase in capital income and a decrease in labor income, but also a situation of greater poverty.

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