“Viver com 700 Euros” is the name of an episode of “Linha da Frente” which was presented on RTP on June 23 and is available on the web. In this episode, we follow the daily life of a catering assistant and her 9-year-old. We see and feel your daily struggles to ensure that the minimum wage you receive is enough to pay the bills by the end of the month… the support you use, the hardships you face, and the support you are not entitled to because of your situation. It does not fall within the bounds of the so-called “most needy”.
They are portraits, in black and white, of the courage and strength that people who earn minimal wages must have in order not to give up and go on to live. Despite all his efforts, the money did not reach the end of the month and he had to borrow 15 euros.
With an inflation rate of about 8%, the catering assistant will see that the basket she buys per month will cost much more, and in the absence of the possibility to reduce its consumption, still has to borrow more value at the end of the month. Since there is someone out there to lend it to her, I don’t know what will happen to her, her son and the many people like her who earn minimum wage.
Inflation is the general increase in prices, measured by the value of the basket indicating Portuguese consumption. This increase in prices leads to an increase in the amount that the family spends per month, if it maintains its level of consumption. For some families, like those mentioned in the episode, there is no solution but to try to reduce their consumption (but how?) for others with savings that they will use as they change their consumption so that it is in line with that. your income.
Since Portuguese families saved more than usual during the pandemic, the savings made were used to maintain the level of consumption. This is possible in the short run, but in the long run it will be necessary to reduce consumption or increase income.
It is possible that some company or state will be able to increase the wages they pay, but the increases will not be enough to fully offset the increase in the cost of living.
Inflation differs from income decline because when income falls, savings do not lose their value; For those with savings, they were still able to buy the same. With inflation, savings lose their value, because they can only buy less, and savers, accustomed for years to nearly flat rates, have to rethink the way they manage their savings.
It is difficult for almost everyone to live with inflation, hence the importance of the decisions of the European Central Bank, whose task is to stabilize prices. At this point, I wish you to make the right decisions at the right time.
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