Talk about “Middle class“In Argentina it has always been about speaking of a central actor. It is the segment that supports consumption, promotes social mobility and transmits values linked to effort, education and progress. However, in recent years this category has ceased to describe a single reality: today it brings together lifestyles, opportunities and income levels that are increasingly less similar to each other.
We at Focus Market develop with the aim of dimensioning this heterogeneity A classification Operation that divides the middle class three subgroups: Medium-Low (MB), Medium-Medium (MM) and Medium-High (MA). Based on this, we put together a specific shopping basket for everyone, consisting of the most important items: food, housing, hygiene and cleaning, home and technology, education, health, clothing, transport, services, insurance and recreation.
Three “middle layers” in one
To achieve a realistic estimate, we take into account a margin for contingencies proportional to the economic performance of each segment: 3% of the total basket value in MB and 5% in MM and MA. We are also considering a differentiated savings margin: non-existent for MB, 5% to 10% for MM and 15% to 20% for MA.
The end result shows a striking inequality within the universe that in everyday language is usually summarized under a single label: “the middle class.”
There are a striking inequality within the universe that is usually summarized under a single label: “the middle class”
That means, Within the same social category, there are households that need $2.4 million per month to maintain their standard of living and others that need more than $11 million, almost five times as much. In practice, it is no longer accurate to speak of a single middle class.
To understand why these differences are so large, we have to look What’s behind these numbers?: how to live, what to consume and what expectations each subgroup has.
Consumption and expectations change in every subgroup within the middle class
In the Lower Medium (MB), everyday life is determined by restrictions. Food and home They explain 50% of all monthly expenses, even under moderate assumptions: a two-room apartment in the south zone, basic costs and minimal technical equipment (a smart TV and two mobile phones of the low to mid-range price range).
The food basket responds to real middle class habits, which are significantly different from the INDEC food baskettherefore, it accounts for about 24% of the total cost.
The category Health appears at zero because this segment is dependent on the public system: free hospitals and health centers replace private medicine. In transportWhen it comes to cars, the use of buses, trains and subways also predominates in order to reduce fuel and maintenance costs.
Even those recreation is limited: a single weekend trip per year accounts for almost half of the entire leisure budget. The scope for regular activities is very limited and there is no capacity for savings.
In Media Media (MM) a more diverse and sophisticated basket appears. Education and health They’re growing a lot: The children attend a semi-private school, and the home has a union welfare or mid-cost prepaid plan.
Home & Technology & Leisure They gain weight and demonstrate a lifestyle that strives for comfort, connectivity and a certain cultural life. The children can participate in an extracurricular activity and the family plans annual vacations on the Argentine coast. The structure of the shopping cart is generally more balanced and offers greater freedom in choosing the quantity and quality of products/services.
In the Upper Medium (MA) the jump occurs in almost all areas. Education is completely private, health is covered by more comprehensive and expensive plans, daily mobility requires two cars, homes are larger or better located, and home technology is higher quality.
The recreation It includes various extracurricular activities and a trip abroad for the whole family at least once a year.
It is the only segment with a stable ability to save or invest (15 to 20% of income), even with a significantly more demanding standard of living. That is, it is the only group with a real possibility of accumulation.
The middle class, a fragmented map with realities that remain almost untouched
The analysis shows this clearly The Argentine middle class is no longer a unified territory, but a fragmented map with realities that almost do not touch each other. This gap is more than just statistical data: it involves, among other things,n structural challenge.
A strong middle class with the ability to consume, save, educate their children and invest in health and housing is one of the most important drivers of any economy. Furthermore, international evidence shows that where the middle class is strong, there is more social trust, less conflict, greater political stability and greater life satisfaction.
Therefore, even in the context of a certain macroeconomic stabilization It is not enough that the prices are ordered: A policy is needed that expands the middle class upwards and not downwards.
This implies:
- Modernizing labor regulations to create more formal employment,
- improving competitiveness,
- facilitate access to productive credit and housing,
- and seize every political opportunity to dismantle the barriers that hinder social mobility.
Strengthening the middle class is more than a sectoral goal: it is the prerequisite for sustainable development and growth.
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