Cross-posted from JohnFeffer.com.
If you look just at the statistics, Hungary seems to be doing pretty well, inequality-wise. The country experienced a significant spike in poverty and household inequality after the political changes of 1989-90. But since then, its rate of inequality has remained around the European average. It moved from Scandinavian levels of inequality (according to the Gini coefficient) to a situation comparable to, say, France. Moreover, according to at least one estimate, significant government redistribution efforts have been responsible for this trend.
But these statistics obscure a couple important facts. Particularly after the financial crisis of 2008, the poorest segments of the population were hit hardest in terms of loan repayments. “Indebted households in the lowest income quintile pay a higher share of their income as debt repayment, and they are also more likely to be in arrears with their repayments because of financial difficulties,” according to one article on income inequality in Hungary.