According to the Institute of Public Policy (IPP), linked to the Paris School of Economics, all households will have seen their standard of living (i.e. all of their income after taxes and benefits) increase by around 1.6% since the start of the five-year term, except for the poorest 5% of households, which have lost 0.5% on average.

Even if these results concerning the poorest may cover "very heterogeneous situations", nuances the study, the standard of living of the poorest households has been eroded by lower revaluations of certain benefits and by the increase in taxes on employment. energy and tobacco, which weigh more in proportion to their income.

Conversely, the richest 1% achieved the greatest increase (in percentage), with an average gain of 2.8%.

And among them, the richest 0.1% earned even more (around + 4%).

According to the study, the richest 1% made the most progress (in percentage), with an average gain of 2.8%.

And among them, the richest 0.1% have earned even more (around + 4%) Fred TANNEAU AFP

The latter benefited in particular at the start of the five-year term from the abolition of the ISF, replaced by the Real Estate Wealth Tax (IFI), or the introduction of the single flat-rate levy on capital income.

Some of the less well-off households have also seen their income increase by around 2%, thanks to the revaluation of the activity premium and the minimum old age.

Work premium

According to the IPP, the fact of working or not proved to be "crucial" in the evolution of the standard of living of households during the five-year term, and it was moreover the priority displayed by the government since 2017.

The effects of the measures "are generally very positive on active households", with an increase in the standard of living of 3.5% on average, while they are "generally quite limited" among retirees, detailed Paul Dutronc-Postel , one of the authors of the study during a presentation.

Last month, the government presented a completely different record of its policy.

According to a study by the Treasury Department at the Ministry of the Economy, the standard of living of households has increased by 4% for the 10% of the most modest households, and by 2% on average for most households.

Demonstrators "yellow vests" with a banner demanding an increase in purchasing power, December 22, 2018 in Paris Sameer Al-Doumy AFP / Archives

What invalidate the criticism of a President of the Republic "president of the rich", which sticks to his skin since the abolition of the ISF and accentuated by the movement of "yellow vests".

Inflation context

A contradiction that the IPP explains by differences in method between the executive and him.

At the Ministry of the Economy, we point out in particular the fact that the IPP did not take into account certain measures "which directly benefit (households) at the bottom of the distribution", such as 100% health, MaPrimeRenov or the contract commitment to young people, or measures "entered into force during this five-year period but decided before".

Moreover, the institute recognizes that, if it had used in its study the same assumptions as the government, it would have found similar results, that is to say an increase of 3% in the standard of living of the 10% poorest, and around 1.5% for the top 10%.

But the study falls badly while the purchasing power is the subject considered the most important by the French, according to various polls, and that for several months the executive strives to counter the return of inflation.

The opposition is multiplying its promises and proposals, in particular to increase wages.

The study falls badly while the purchasing power is the subject considered the most important by the French, according to various polls, and that for several months the executive strives to counter the return of inflation ERIC CABANIS AFP / Archives

This study shows "the deeply anti-redistributive aspect" of the government's policy in favor of the better-off, moreover denounced the deputy La France insoumise Eric Coquerel, during a round table organized after the presentation of the study .

The Modem deputy Jean-Noël Barrot saw in it "the validation of the average effect of about + 2%" on the standard of living of government decisions, when his colleague LREM Laurent Saint-Martin recalled that the fiscal measures in favor of the better-off had the "political" aim of improving "the investment climate in the country.

© 2021 AFP