If Germany Is Rich, Why Are Germans Poor and Angry?

Chapters:
00:00 Intro
01:45 How to Unlock Content
02:59 Poverty in Germany
06:12 German Wealth Inequality
09:05 More Wealthy Than You Think?
13:36 Should Germans be Angry?

Episode No. 153

S𝗨𝗣𝗣𝗢𝗥𝗧 𝗠𝗘

[MrSit]

Germany is rich, Germans are poor... old problem here.

[CameronFussner]

The average Germans is the foundation of this nation's economy, therefore if their money vanishes, unemployment will rise and the message "You have an unexpected month" will emerge. If you have a lot of student loans that are coming due, that money will run out very soon.

[edna.Chavis]

People should remember: poverty is not an accident, a coincidence or an inevitability. It is something which is manufactured by the ruling class, that's why investment is the key to sustaining your financial longevity

[leslielemmon]

The definition of "rich" is already wrong in Germany. You are considered "rich" in Germany when you make 3, 500€ after taxes. Meanwhile, new houses in Bavaria (Landshut, for instance) are impossible to build at under 800.000€. This means, in other words: Buying a house is impossible these days even for rich people. It is unfathomable for single earners, and still impossible for two earners. Even if they are childless. Because at 7000€ combined income, without a major inheritance, you won't even qualify for an 800.000€ loan. This means, owning property is now inherently a luxury reserved for whatever ranks higher than "just rich'. If you're "only" rich these days, you can't afford a house.

[Bonserak]

I love when the media reports the economy is going fantastic when what they really mean is it's great for the top 20-10% and borderline dystopian for everyone else LoL

[oneukum]

This is not a German problem. It is a general Western issue. Neither the French, British or Americans have affordable housing or affordable basics due to inflation. Looking at the specific German version of the issue may be interesting, but it is not productive.

[sylvialb]

As a German-American myself, I‘m glad you explained the differences in the retirement systems so well! People take mental shortcuts, simply since they often don‘t know the details of how the other system works. People in the US are always flabbergasted when I tell them how much I pay on monthly health insurance premiums in Germany (I’m self-employed, so I pay both halves). They typically assumed I paid nothing for that at all 😂

[stephaneicke]

With all due respect but that analysis doesn’t provide a broad view of the overall issues we have in Germany. It’s not just taxes and the fact that we tend to stay away from private investments and shares (a particularly American view when it comes to pensions) but that we suffer from crippling bureaucracy and now see the effects of the country’s refusal to invest. Our public transport system is outdated and unreliable, we have no up to date digital infrastructure (we mostly still use copper cables) and as a result jobs are moving elsewhere. Our social benefits system has been used as a guinea pig for decades and is subject to constant changes. Germany is decades behind other countries and that obviously has an effect on everyday life

[userRR]

We are poor and angry because our wages can't afford anymore vacations, going out for food and leisure, as well as basic necessities. 20 Years ago, the local postman was able to afford his own house after many years of work; now, even those with higher degrees and salaries can't even afford this. We're living in a society with no future hopes of actually owning anything of value to call your own. That is why so many people are discouraged to actually work hard, because the minority working population needs to carry the burden of all the non-workers....

[imanolsenderos]

Germany is currently the third largest economy in the world. It surpassed Japan some months ago, ironic considering how bad Germany is currently doing.

[JB-sbin]

Tax is 50%… I was born and raised in germany. But after medicalschool I will leave for switzerland. The system is broken and I will not work my ass off for nothing.

[wewillmakeit]

I'm from Germany. We (my wife, 3 kids and I) belong to the top 1% in my country, counting income or asset value (by estimation, because accurate and recent statistics are hard to come by). Using this metric I should be filthy rich. Most people in Germany even seem to think, I should be considered "too rich" and be taxed more. But when I look at my actual lifestyle, I consider myself "well off middle class". I have a nice home. Me and my wife drive old normal cars (Renault an VW, 10 and 15 years old). We are approaching the age of 50 and my wife just now left her job (dentist) to focus on managing our assets (real estate). We go on vacation once or twice a year (but that is a recent thing. Between the age of 30 and 40 we maybe went to 5 vacations due to lack of time and money. 5 years ago I had a bit of a mid life crisis and bought an old Merc SL500 (9000 EURO) as a hobby. We don't have to think about daily living cost or any other daily expenses too much, though I still prefer to buy used stuff (TV, Laptops, smartphones, furniture). After working for 25 years I feel, that I have a pretty good life.

And here is what I am trying to say: My life is what (imho) should be considered as normal middle class. When I compare my lifestyle to - say - the 70ties, everything I was describing above (1 vacation per year, no fancy car, a house and a stay at home wife) was actually considered lower middle class. But that shifted over time. Now this kind of life is reserved for the upper 10 or so percent of the population. Those who set out to be middle class by passing school with good grades, make their way though university or learn a trade and assume a solid "well paid" career soon realize that this kind of life path will in truth not make them enough money to become what is widely beveled to be middle class. And this is what makes people angry. At least I think it is.

[jokakilla]

I think one reason why more and more people are becoming angry is also the state/government. We are used to pay very high taxes for a long time and it has been accepted by most because you get something in return.
My impression is that now more and more topics like education, care, childcare, health, infrastructure like roads, bridges, energy and many more are getting worse constantly. They don't even manage manage to keep play grounds or parks in shape anymore. Digital service for id or driver license? Forget it. Matriculate digitally at university? That means send a PDF and they'll print it.

[Brausebonbon]

The thing that makes me angry the most is, that we cant have higher minimum salary because that "would rise prices and would not change anything" but yet the prices are rising anyways and companies have their best year EVERY year without giving back to the workers that generate the wealth for companies.

[marcelprivat]

Our Politicians are clowns, that’s the real problem here in Germany 😒

[swidlund]

As a foreigner (Swede) living in Germany, one thing I’ve noticed is that Germans generally don’t seem to be good at investing money. According to both statistics and from me talking to locals, a lot of people just put all their money in a savings account instead of investing it in the stock market via stocks or ETFs.

A lot of Germans seem to simply be too scared to invest on the stock market.

That combined with high property prices in and around cities means that owning your own home in or near a city is out of reach for most people.

[alanpotter]

Let's not forget that "poverty" means different things in, say, Germany, Bulgaria and USA.

[huha]

My combined SSA and European benefits as a retired person wouldn't provide me with a nice retirement living in LA, where I would probably be living in a tent on the streets, but having money for nice meals, etc. However, I have a nice apartment near the forest, can save 20% of my retirement for vacations or emergencies, covered by healthcare here in the Alps. Not poor, nor wealthy.

[SethAbercromby]

As a German I just find the idea of "just tax more" as the only solution anyone can seemingly suggest an insult to our general intelligence. Germany has one of the most oppressive tax systems in the world, and it will always burden the lower and middle income brackets the most. That's why our economy went from amazing to borderline catastrophic within the span of a single generation. We as citizens are not treated as humans, but as machines the state can extract wealth out of to justify their grossly irresponsible spending.

I make 3k a month and lose nearly half of it just to income tax. We. Don't. Need. More. Taxes.

[cansen]

to say it in German .. wir werden gemolken wo es nur geht. aber hey, dafür läuft in dem land auch alles rund, super niedrige Mieten, günstige energiepreise, wenige steuern, gutes wetter, klasse öffentliche verkehrsmittel wie die deutsche bahn mit neusten zügen, gutes internet, kaum bürokratie, alles digitalisiert, kaum wartezeiten bei fachärzten oder ämtern, alle schulen sind hochmodern und top saniert und vieles mehr... :)