“Wealth gaps have increased sharply for 15 years”: “I’m a little disgusted”, says Mathias

The economic crisis which is hitting our country with full force is drastically accentuating the wealth gap between the different classes of the population. While million-dollar homes have never sold so well, many are no longer able to make ends meet.

This is the case of Mathias, who works at STIB. This father of a family delivers a touching testimony on the show It’s not every day on Sunday. “I have to check that I have enough money to pay for gas to go to work. I can’t afford to go on vacation anymore. Before, I went to the sea or a little weekend in France. I’m a little disgusted. Me too, I would like to go on vacation, enjoy life and show beautiful landscapes to my daughter, but it is no longer possible for the moment.

The lower middle class will be wiped out

Present on the show’s set, economist Bruno Colmant explains that the gaps have been widening for many years.

“What we have seen for 15 years is that the gaps in terms of wealth and income have increased sharply. Belgium was a fairly egalitarian country, but the lower middle class will be flattened by inflation..”

The economic response to the crisis over the past ten years has been to lower interest rates. When they fall, the value of assets increases (real estate, stock market, etc.). It creates a very significant wealth effect, we see it in many areas such as real estate, but also consumer goods such as luxury watches. We see that there is a difference that is created between two categories of people in Belgian society”adds Bruno Colmant.

For the economist,the real problem we are facing is: how to help people who have an income problem in the coming quarters?

And the future does not look rosy since inflation will continue to increase, announces Bruno Colmant. Worse, in addition to increasing, “inflation will kill, in terms of purchasing power, people who have low incomes while people who benefit from goods, capital, even company cars have a natural wealth effect which adapts.”

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