The government is all the time telling us that we have had record growth over the past years, beating the growth registered in other European countries.

But then comes Caritas, the church-funded organization, and tells us that the poor in Malta have increased so much so that it is suggesting establishing a minimum essential budget for decent living ie establishing the minimum amount of funds a family needs to live a decent life.

Last September, the Statistics on Income and Living Conditions survey revealed that during 2014, the monetary at-risk-of-poverty rate stood at 15.9 per cent. The at-risk-of-poverty or social exclusion rate stood at 23.8 per cent.
The average household gross income and the mean disposable income stood at €29,948 and €24,730 respectively. These figures were used for the computation of the median national equivalised income (NEI) and the monetary at-risk-of-poverty threshold. The latter rose by 5.7 per cent when compared to the previous year, reaching €7,672.

The survey showed that 65,987 persons living in private households, or 15.9 per cent, had an equivalised income below this threshold, and were considered to be at-risk-of-poverty.

Politicians argue whether this proportion of Maltese at risk of poverty is on the increase or decreasing.

Caritas this week suggested an increase in the minimum wage, and government says it will be studying this suggestion.

But the question we want to pose today is preliminary to the concrete suggestions: are we rich or are we poor?

It may well be that we are both.

It is true that the number of people holding a job has increased so much that Malta now has record unemployment. But it is also true that the influx of foreigners has helped keep wage increases down. This has even been admitted by the government.

It is equally true that the 25% cut in electricity and water rates has helped all residents of Malta.

But we need to segment the various categories of people and then of workers.

People in government employment, for instance, only get COLA increases and then any collective agreement increases. But in general their incomes are at a lower level than that practiced in the private sector. This needs qualification: there are people in the private sector who are paid the minimum wage or even get part-time wages. And then there are people in the flying categories such as financial services, online gaming, etc where salaries are at the high end.

The exercise to tot up all the economic activity in the country, even a small one such as ours, would then have to include the profits and earnings of enterprises, be they in agriculture, in construction, in real estate development, in importation, etc.

While the government figures keep getting better, both as regards the deficit and as regards the public debt, it is equally true that the local financial institutions managed to avoid the crisis that pushed so many of their foreign colleagues into dangerous waters.

Tourism figures have continued to climb even in months where we thought no further expansion could be had, such as the hot summer months.

According to the unanimity of credit rating agencies and even the Commission, the way ahead would seem to be: steady as it goes. That could also come to mean: avoid any developing bubbles, keep control of public expenditure and avoid straying from the path of virtuous economic management of the country.

At the same time, however, what is to be done about the people at risk of poverty? Whether they number 23.8% of families as the NSO 2014 study said, or more is of course very relevant to establish but even at 23.8%, that is 23.8% too much.