Inequality in Spain: The struggle between work and investment widens the economic gap.

The disparity in income distribution in Spain has become a central topic in economic and social debates. A recent analysis reveals how the majority of the population, represented by profiles such as Ángela Montaner, Hugo Pastor, and Mario Ferrer, fundamentally relies on their work for survival. Montaner, with an annual income of 26,000 euros as a social educator, Pastor, a maintenance worker who supplements his salary with deposit returns, and Ferrer, a senior official who earns just over 2,000 euros through small investments, illustrate how the middle and lower classes are trapped in a system that privileges a small group of investors. Data from the Ministry of Finance show that nine out of ten people in Spain fall within taxable income brackets between 18,000 and 60,000 euros annually, where work accounts for nearly 90% of their income. However, as one moves up the income scale, this trend reverses. Starting from 240,000 euros annually, the contribution of work to total income drops below 50%, and upon exceeding 600,000 euros, it represents only 30%. This reality raises serious questions about the economic future of the working classes. The contrast in the income structure becomes more pronounced when analyzing the relationship between investment and salary income. In the lowest four income quintiles, representing about 80% of the population, investment accounts for barely 3% of average earnings. However, in the wealthiest 20%, this figure skyrockets, reaching 63% in the top 1%. Financial education, access to investment opportunities, and the ability to save are privileges that not everyone can afford, further widening the existing gap. While Montaner and Pastor express their reservations and limitations regarding investment, Alejandra Hernández, the director of high net worth clients at ATL Capital, describes high-level investors as those who always have the financial muscle to embark on enriching projects. This phenomenon is not only limited to investment capacity but is also influenced by current tax regulations. The design of income tax favors capital income over labor income, resulting in a lower tax rate for investment gains. Data indicate that 93% of taxpayers are assessed through the general base, while only 38% do so through the savings base, a percentage that increases in higher income brackets. This suggests a concentration of wealth in the upper segments of society, which can benefit from a tax structure that allows them to accumulate more capital. As high incomes increasingly depend on their investments, a situation is perpetuated where social mobility is limited. Researcher Javier Soria from Harvard University provides an additional perspective by analyzing social mobility in Spain. The data show a troubling correlation between parents' class and their children's economic status. Only 3.77% of those reaching the top 1% come from families in the lowest decile, highlighting that social ascent is an unattainable goal for most. This lack of mobility not only affects individuals but also has implications for social and political structures, where an economic elite perpetuates its privileges. The tax regulations, which grant more favorable treatment to savings income, further reinforce this gap. Labor income is taxed at higher rates, while capital income enjoys taxes that do not exceed 28%. This situation creates a regressive system that benefits the wealthiest, who can evade a significant portion of their tax responsibilities through investment strategies. Experts agree that this dynamic generates a vicious cycle that prevents the working classes from improving their situation. The lack of saving capacity and dependence on stable salary income limit the possibility of investing and, consequently, of increasing their wealth. Inequality is not only economic but is also rooted in the lack of opportunities and resources to access investment. The future of the Spanish economy is at stake. If reforms promoting greater tax equity and facilitating access to investment for the middle and lower classes are not implemented, the gap between the rich and the poor will only continue to grow. Public policies will play a crucial role in correcting this inequality and rebalancing the economic system to ensure that all citizens have the opportunity to participate in wealth creation. Without significant changes, the perpetuation of this privileged elite will be an insurmountable obstacle to the social and economic development of the country.