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Germany's rich get richer despite crisis

The Local · 18 Sep 2012, 08:44

Published: 18 Sep 2012 08:44 GMT+02:00

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A government report on poverty seen by Tuesday’s Süddeutsche Zeitung newspaper said the development "violated the people's sense of justice."

The richest ten percent of German households have more than half of the total assets, the report said - taken to include real estate, investments, land or claims from company pensions. And the poorest fifty percent of households have just barely one percent of the net wealth.

The net wealth of German households has doubled in the past two decades, from €4.6 billion to more than €10 billion.

Süddeutsche Zeitung said the report also showed that there was still a wealth gap between people in former eastern Germany and western Germany. West German households had an average net wealth of €132,000, east German households just €55,000.

Private citizens may be getting richer, but the report showed the state was getting poorer. The Labour Department report claimed that net assets of the German state fell by more than €800 billion between early 1992 and early 2012.

It also noted that as part of the rescue efforts during the financial crisis there was "an observable shift of private assets and liabilities in state budgets."

The report defended the increase in non-traditional employment, including part-time work, and temporary or contract positions, saying these jobs were not created at the expense of normal working conditions.

But the Ministry of Labour did note that: "hourly wages which are insufficient to secure the livelihood of a single person who is working full-time, exacerbates the risk of poverty and weaken social cohesion."

Story continues below…

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The Local (news@thelocal.de)

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Your comments about this article

10:48 September 18, 2012 by Englishted
Thank you for stating the blindingly obvious, ""hourly wages which are insufficient to secure the livelihood of a single person who is working full-time, exacerbates the risk of poverty and weaken social cohesion."

Get rid of €400 jobs and tighten up the working practices of job agencies.
11:06 September 18, 2012 by melbournite
As David Cameron would bizarrely say, "we're all in in together" - not
12:50 September 18, 2012 by Berlin fuer alles
These are the people the Euro zone is really working for whilst everyone around the Euro zone pays with austerity. The Euro has been a success for big German business and these are the people reaping the benefit. No way they want the Euro to fail.
17:43 September 18, 2012 by IchBinKönig
Wow. are people really waking up??


You're almost there! however, its no longer to do with the business sector. it has primarily to do with the banking sector.
21:57 September 18, 2012 by Wise Up!
Don't like what you are being paid? Get another job!!! If the rich are getting richer, then that means you can get rich too. How did they get rich in the first place? They earned it by taking risks and starting business. That means you can do it too. Stop being lazy and whining.
10:52 September 19, 2012 by COLMAC13
Hi "Wise Up". I love your logic. You sound like someone with a bit of common sense. However, how disturbing it would be to your way of thinking if everyone in the world did as you said. What would happen then? Would it mean a redistribution of wealth - the rich would get poorer and the poor would get richer. Or perhaps everyone would be rich? Don't worry though, your way of thinking won't happen because as we all know (don't we?), there are too many people who just don't want others to suffer so that they can have a luxurious lifestyle.
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