In Lebanon, where almost everything is now priced in U.S. dollars while wages continue to lose value amid relentless price increases, the idea of a decent life has become increasingly unattainable, experts warn. 

The erosion of purchasing power has raised fears of a social explosion, as the cost of basic necessities suggests that the actual minimum for a dignified standard of living is at least $1,500 per month for a typical family.

“What we are discussing today is not luxury. It is about securing the minimum level of human dignity,” economist Jassem Ajaka told Nidaa Al-Watan.

According to United Nations reports, poverty in Lebanon has evolved beyond mere income deficiency to become multidimensional, encompassing health, education, housing, and employment. More than 80% of Lebanese now live below this multidimensional poverty line, while roughly 40% fall under extreme poverty, unable even to meet their most basic needs, Ajaka said.

Since the onset of Lebanon’s economic crisis in 2019, continuous financial collapse, skyrocketing inflation, and the freezing of depositors’ funds have severely undermined citizens’ purchasing power.

“The multidimensional poverty rate has exceeded 80% of the population,” Ajaka said, adding that many families struggle to secure essential goods and services.

Ajaka emphasized that the decline in living standards is not solely due to macroeconomic factors.

“Another major factor is monopolization. The Lebanese market is monopolistic in every sector. Claims of real competition are inaccurate because the basic conditions for competition simply do not exist,” he said.

He noted that price monitoring reveals the absence of genuine market competition.

“In markets with real competition, prices rise and fall according to supply and demand. In Lebanon, prices rise but rarely fall, even when global oil prices decline. This is a clear sign of monopolistic practices.”

Geopolitical tensions and regional conflicts have also disrupted supply chains, increasing the cost of insuring imported goods, which in turn has further driven up prices, Ajaka said.

“This has intensified pressure on household budgets, leaving many families unable to meet their basic needs,” he added.

Ajaka offered a practical example: “A family of four, even if it receives minimal government aid, estimated at around 50 million Lebanese pounds, though this is unconfirmed, will still fall short. Just the cost of a private generator subscription could reach 10 million, not including food, school fees, or water.”

Ajaka noted that private sector wages are no longer sufficient, while public sector salary increases have been granted in the form of allowances rather than base pay. As a result, retirees often receive pensions of only $100–$200 per month. He argued that the minimum required today to live with dignity in Lebanon cannot be less than $1,500 per month.

“But who guarantees that raising the minimum wage to this level will not trigger renewed inflation?” Ajaka cautioned.

He stressed that the government must prioritize market oversight and hold monopolists accountable.

“Price control cannot succeed without dismantling monopolistic structures and establishing genuine competition,” he said, calling for strict measures to tackle monopolization and noting that its persistence leads to continuous price increases and worsens the living crisis.

He also urged reviewing public sector wages while halting uncontrolled hiring, as occurred in 2017. Additionally, he recommended providing citizens with economic incentives and creating an environment conducive to real growth.

“The only way to fight poverty is by offering genuine employment opportunities that generate sufficient income to cover basic needs,” Ajaka said.

Lebanon’s weakened economic structure has prompted some to seek alternative solutions outside formal channels. Ajaka concluded that urgent reforms are needed, including restructuring the banking system and promoting competition.

“Competition is a fundamental element in combating monopolization,” he said.