June 10, 2015
The European Union is acting as a great source of poverty at the moment. The period from 2008-2013 has seen an unprecedented increase in unemployment levels, that a monetary union could not solve. Spending cuts, a growing divide inbetween how the young and the old approach society, social security troubles, are all different for each separate country.
Countries where the income level of families is lower than average, there is a tendency to have a greater household borrowing measure because previously it stemmed from levels of inequality. Although, the economic climate has stifled borrowing capabilities, the question over this situation does not stop just there: there is a great amount of private debt, levels of unemployment, poverty and a restricted contact with gaining education.
Both economic and political stability depends on this particular situation improving, but these problems must be addressed nationally, rather than on a detached union level. When tax policies are reviewed, to deal with the recession, more thought should be added to how this can impact different class levels, the affluent and the poor.
The population in Europe is always increasing, and with this so are the unemployment levels, which has been the highest in over two decades. Earlier on, the recession had taken a stronghold of many European countries, from Greece to Italy, but nowadays, the situation is looking very bleak towards southern Europe.
Some people in these southern states of Europe are seriously materially deprived, and it begets how this is influencing social inequality regionally. Since the 1980s, Europe has been witnessing a greater level of inequality. Certain countries, such as Greece can ill-afford to manage social expenditure levels, in comparison to richer countries, such as the United Kingdom.
As inequality grows, so does borrowing levels for low-income households, which is also heightening other concerns, such as migration to affluent countries, for Eastern Europeans. These fast-growing economies will face too much competition for skilled labour if it does happen so, such as from China, where it is expected that the working-age population is going to contract, as we touch on 2020.Author : Osmi Anannya