A very unequal new world

One of the most damaging consequences of the pandemic will be the augmentation of social inequalities. Some people will not be particularly impacted by the economic crisis that results from the measures taken to combat the Covid-19. They will experience no real change in their lifestyles. But the others, many of them, will see their income disappear or be dramatically reduced. They will be the new poor, finding themselves in desperate conditions. Their numbers will reach new heights, causing a totally distorted social reality and extreme instability. Such a situation will be explosive. The new poor are not used to navigate the poverty waters. They will feel left behind. We should expect if nothing is done to mitigate the misery, a very serious political challenge.

A global wave of urban revolt

It cannot escape one’s attention that currently there are several cases of urban revolt taking place in a good number of countries. Each one of these mass movements have their own specific causes. But I think there are a few common features. They are related to the stress of leaving in megacities with poor infrastructure and high cost of living, housing challenges, youth unemployment, job insecurity, and the disparity of living standards one can find in every big city. Inequality and a strong feeling of social injustice combined with scot-free corruption by the elites lead to mass demonstrations, including the destruction of symbols of power.

Europe is heading towards nasty social confrontations

Europe´s cost of living is too high. In addition, the tax systems are too heavy. For many families the money is not just enough. And that explains, in many ways, why we have more and more nasty general strikes and street protests in countries that have been traditionally quiet. When the income is short, compared to the costs of living a basic life, any cut on salaries, pensions, subsidies or allocations makes a big difference. The problem is that we should expect more income reductions and therefore additional social conflicts.