The statement that an annual income of 250,000 Euros in Madrid does not signify a “good life” has sparked heated discussions in Spain. This provocative thesis, put forth by Professor Jesús Fernández-Villaverde on X (formerly Twitter), highlights the deep divides in the perception of wealth and quality of life within society. For many who manage with significantly less, this sum appears as unimaginable riches, while from the professor’s perspective, it merely represents “economic mediocrity.”
A Question of Perspective: Poverty, Resignation, or Wealth?
The initial reaction to Professor Fernández-Villaverde’s statement was outrage for many. Anyone who manages with a fraction of this sum, has a roof over their head, and a full refrigerator, certainly doesn’t perceive this as a bad life. Rather, the outrage reflects the widespread attitude of the working and middle classes, who have learned to make do with what they have and often look downwards to avoid the worst.
The professor, who has lived and taught in the USA since the mid-1990s, views things from a different angle. His argument is aimed less at the general population and more at the Spanish upper class, whom he accuses of a certain contentment and lack of ambition common in other countries, particularly the USA. He speaks of wealthy people from the perspective of a wealthy man, for whom an income of 250,000 Euros is only a fraction of what the American elite would define as “rich.”
Spain’s “Poorest Rich People in the World”: An Analysis of the Income Gap
Fernández-Villaverde quotes an article by John Müller, lamenting that Spain lacks high incomes, solid average incomes, or widespread prosperity. Instead, government measures such as the minimum vital income or the steady revision of the minimum wage aim to prevent a divergence of low wages. Although nominal wages have risen in recent years, purchasing power has decreased by 1.9% since 2019. This supports the thesis that Spain, in a global comparison, is a country with the “poorest rich people in the world.”
The debate reveals the immense gap between the tiny peak of Spanish society and the broad mass of the population. According to OCU, 63 percent of Spaniards struggle to make ends meet. This discrepancy is not only one of income but also one of life philosophy and expectations. While the upper class looks upwards and compares itself to global elites, the working and middle classes look downwards, to the possibility of social decline.
The Spanish Middle Class: Modesty as a Way of Life
The mindset of the Spanish middle class, reflected in the outrage over the professor’s statement, differs significantly from that in other countries. While in England, the middle class sends its children to elite universities like Oxford or Cambridge, in Spain, it’s about finding an affordable school or owning at most two properties. It is a mentality that focuses on immediate reality and is often closer to the abyss than the summit.
For many Spaniards, a “good life” does not mean luxurious trips to Asia or stays in high-end hotels. It means having a roof over their head, a full refrigerator, enough leisure time, and the ability to afford smaller pleasures. Upward mobility has never been as pronounced in Spain as in other countries, which has led to a certain lowering of expectations. The “Mediterranean good life” was and often is modest, characterized by sun, sociability, and the security that basic needs are met.
Globalization has brought forth new forms of wealth that no longer have anything to do with the local elites of the past. The lifestyle of the global super-rich is not only unattainable for most Spaniards but also hardly imaginable. This discussion highlights the deep sentimental difference between social classes, mentalities, and aspirations, even if everyone lives in the same virtual universe.
