The Netherlands faces a dramatic drop in income of almost 7 percent; about 1.3 million inhabitants will soon live below the poverty line. This must not lead to political apathy.
For years, Dutch politicians were able to argue about marginal changes in purchasing power figures – half a percent more or less was already cause for commotion and debate. But now that the Dutch are facing a historically dramatic income drop of almost 7 percent, the government is almost resigned to accepting this.
‘Really heavy figures’, ‘even worse than we thought’, and ‘something that does not suit the Netherlands’, were the words of various ministers. It is therefore particularly disappointing that the cabinet members then announced in the same breath that it will be ‘very difficult in practical terms’ to do anything. The fact that the cabinet has already set aside a few billion to absorb the first blows is no excuse. A few million Dutch people are facing a financially difficult winter. About 1.3 million of them will soon live below the poverty line, according to estimates by the Central Planning Bureau.
Of course, purchasing power is not sacred. We have lived in excess for decades, and a correction is inevitable. Russia’s war against Ukraine and all its inflationary consequences seem to be the shock that will return us to a new equilibrium level. The rich West will have to get used to less wealth. This setback cannot be compensated for everyone and it should not be attempted, especially if the burden falls on the shoulders of future generations.
But this macroeconomic fact should not lead to political apathy. Drivers are there to react to events (when anticipation is too much to ask).
Because again, this is historic. The loss of purchasing power is about much more than purchasing power alone. People will get cold, get hungry, become homeless. Families will be under tension, bills will no longer be paid, children will do their homework shivering. The question is how these domestic problems will translate socially. The Yellow Vests were already taking to the streets in France when petrol was made a few cents more expensive.
The loss of purchasing power is unevenly distributed. Not everyone is hit equally hard by the higher energy prices. Not only do disposable incomes differ, energy consumption and energy contracts also vary so widely that generic compensation such as lowering energy taxes too often ends up with those who do not (hardly) need it. However, individual customization is too complex, especially for the understaffed and overburdened tax authorities. The measures will have to target specific groups.
A first step in this direction was made last year by TNO, which mapped out energy poverty in the Netherlands on the basis of the incomes and energy labels of the homes in which the Dutch live. Perhaps a maximum price can be set for the energy bill of tenants of poorly insulated homes – for which they bear no responsibility themselves – for a winter? Or halve their rent for a winter, so that the landlords are encouraged to do something about the insulation of the house? France can serve as an example, where President Emmanuel Macron has already taken drastic measures.
Some of the Dutch are facing an unprecedentedly difficult time. This is a problem that cannot be pushed aside for once.
The position of the newspaper is expressed in the Volkskrant Commentaar. It is created after a discussion between the commentators and the editor-in-chief.