Key specificities of social fabric under new-capitalism

Abstract

The paper describes manifestations of inequality and poverty evolving under new-capitalism in Hungary. The new aspects of inequality include unlimited force-fields and unbridled competition between them, new divisions in inequality, and the absence of both ceiling and floor. The new features of poverty include massive and lasting joblessness leading to the socialization of children in an atmosphere of hopelessness, extreme social exclusion turning entire micro-regions into poor and Gypsy ghettos, demeaning forms of workfare and the like. About half of Hungary’s residents have lost out in the regime change, meaning that they are worse off now than before. Roughly half the losers are poor and about half a million of them (the entire population of the country is ten million) were poor both before and after the change. The new inequality and poverty is a challenge to all Hungarians, particularly to politicians and the poor themselves. Responses are often distorted because the sudden and extreme occurrence of poverty has spawned a vehement rejection of the poor, often combined with rapidly spreading racism.