Wednesday, August 31, 2011

Germany is not that equal either

Germany is a land of inequality. The gap between rich and poor has widened

The 5,000 best-earning German households have increased their share of the total national revenue by about 50 percent since the mid-1990s. At the same time, the real income of all Germans has remained about the same over this period.

The net share of wages -- that is, the share of national income accounted for by wages -- was about 44 percent in West Germany up until the 1980s. Ten years later, it was just over 38 percent. Now it's about 35 percent. In the same period, the portion of income accounted for by profits has continually risen.

The markets are constantly demanding higher returns. Those who do not meet their expectations are punished with declines in the price of their stock and higher borrowing costs. Companies, forced to adjust to these requirements, keep wages down and their workforces at a minimum.

Germans too live in a system where the few profit but the many do not.

From Der Spiegel

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