Close

2018-09-05

How rich is Germany really?

Perhaps these are the two dry, but the Central statements of the current poverty and wealth report of the Federal government:

  • The net assets of private households has doubled in the past 20 years, more than.
  • The state assets decreased by 800 billion euros.

Since last Monday, the draft of the fourth poverty and wealth report of the Federal government. The result: Rich, despite financial crisis are getting richer, the wealth of the state, however, is dramatically smaller.

This is mainly to the net assets, including for example, real estate, money, investments, land or claims from company pensions.

There will be a gigantic redistribution from the state to the private sector.

Specifically: According to the poverty report of the increased prosperity in Germany. While the net assets of the German state decreased between the beginning of 1992 and the beginning of 2012 to over 800 billion euros, has doubled the net assets of private households of almost 4.6 to around 10 trillion euros.“


But also within the private sector there is an extreme redistribution

Accordingly, the assets combine with the strongest ten percent of all households, over half of the total net assets. The share of the top tenth is increasing continuously. In 1998, he was 45 percent, in 2008 this group accounted for more than 53 percent of the total net assets. The lower half of households owns only one percent of the total assets. If this trend continues, it will drift to the rich-Poor gap in Germany farther apart.

On the basis of the Lorenz curve, it is clear that already five years ago, the redistribution at the expense of at the expense of the “bottom 90 percent”.

 

 

Cause in the past

Wie reich ist Deutschland wirklich?Comments and discussions focus on the analysis of the causes mainly to the crises after the turn of the Millennium, in the Wake of the Subprime crisis and the current so-called Euro-crisis. But what has survived as the cause of the cyclical On and off, is durable, relatively low development of the real wages. Since income – and wage income – potential wealth creation factor is not surprising when looking at the chart below, the increasing inequality in the private sector

Efficiency

The financing of public goods and public services provided should mostly be made in accordance with the efficiency principle. The results of the report and the analysis of real wage trends suggests that, in Germany there is a structural deficit that the purchasing power in our economy is in danger of sustainable return, and that the risk of a disappearance of the social consensus will rise a fundamental equality of opportunity.

Conclusion: this is A redistribution of the state or society a country’s assets for the benefit of a small circle of Private do not richer, but poorer. And, as such, the overall level will rise.

Leave a Reply

Your email address will not be published. Required fields are marked *