Unprecedented Wealth Erosion in Major Eurozone Economies Amidst Inflation Surge
2469 sats \ 7 comments \ @TomK 21 Nov 2023 meta
In a recent report, the European Central Bank (ECB) discloses that the steep rise in consumer prices during 2021 and 2022 has resulted in significant wealth declines for households in Germany, France, Italy, and Spain. Despite governmental aid, households experienced a 3 to 4 percent dip in disposable income, with Italy bearing the brunt at 8 percent. Explore the intricate details in the latest ECB report.
And those are ''their'' cooked numbers...
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67 sats \ 1 reply \ @purpurato 21 Nov 2023
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0 sats \ 0 replies \ @TomK OP 21 Nov 2023
Damn. Hayek was right again! Nice tie btw
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0 sats \ 3 replies \ @Undisciplined 21 Nov 2023
A 4% dip in disposable income is what happens during a pretty big recession in America. Is that the same for Europe? It seems like the recession started a couple of years ago over there.
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600 sats \ 2 replies \ @TomK OP 21 Nov 2023
Yes, You need to put in 1. the real inflation data (another 3-5% loss of pp) and 2nd the cooked GDP data that always includes credit-financed gov spending which grew last year by about 2-6% depending on the country. Here in Spain for example labor market is dead, salaries are horrible (average around 2.500 euro brutto). This economy is a zombie
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25 sats \ 1 reply \ @Undisciplined 21 Nov 2023
I know another economist who was starting to sound the alarm about a crisis coming to Europe because their green/renewable energy programs grossly underperformed and they were going to have to supplement with way more oil and gas than anticipated. His main concern was actually how that was going to impact chemical fertilizer supply, since he works on agriculture.
This was just before Russia invaded Ukraine and all those problems were blamed on the war.
Is that about the timing of the economic decline?
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600 sats \ 0 replies \ @TomK OP 21 Nov 2023
Hey, then You already know the only two economists screaming at the wall about this crisis for years. Honestly: the eurozone never overcame the GFC as it was a structural public debt and currency crisis here in Europe. The timing? It was predictable that politicians and their media outlets would use any cover story to hide the the failure of the Eurozone.
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0 sats \ 0 replies \ @02df4abd70 22 Nov 2023 freebie
The ECB report indeed unveils a concerning reality: soaring consumer prices have severely impacted households across major European nations. The reported wealth declines and reduced disposable income align with widespread concerns about the actual economic impact on families, highlighting the urgency for effective solutions amidst rising inflationary pressures.