Germany’s economy is booming. Since reunification, the unemployment rate has steadily decreased and Germany has turned itself into one of the richest countries in Europe. Nonetheless, poverty in Germany remains a potent issue. In 2017, more than 15% of people in Germany were impoverished. Here is some information about the country’s poverty rates as well as its plan to eliminate poverty in Germany.
The Rise of Poverty in Germany
According to the European Union’s (E.U.) standards, the number of individuals living in poverty in Germany is continuously increasing. In 1995, 12% of Germans were making wages that qualified them as at risk of or living in poverty. By 2014, that number had risen to approximately 16%. As of 2017, approximately 19% of people in Germany were at risk of living in poverty. Over 15% were already living below the poverty line. The Institute of German Economic and Social Research defined the poverty line as a 60% median net income.
The above percentages only represent households in Germany and do not include those living in refugee camps who may be experiencing poverty. As of 2018, Germany had more than 1 million refugees living within its borders.
Despite the country’s economic success in manufacturing and trade with the E.U., Germany’s poverty rate continues to reach record highs year after year. While the economic boom helps the country in certain ways, the benefits oftentimes do not reach the impoverished. People living in poverty often lack the resources necessary to escape impoverishment. Though new jobs are available, the wages are generally meager, while the profit tends to go to those who are already wealthy. Many attribute the rising poverty rate in Germany to the exploitation of the poor.
Unequal Poverty Across Germany
Impoverishment does not affect all regions of Germany equally. Southern Germany, the least impoverished area of the country, still has a poverty rate of about 12%. The region with the highest poverty rate, the North, has a poverty rate of a staggering 18%. Additionally, the North also experiences the highest poverty growth rate.
This inequality is largely attributed to the Ruhr region, a highly industrial area in Northern Germany. The Ruhr is the most densely populated region in the country, with production focusing largely on coal, steel and chemical manufacturing. During World War I and World War II, the Allied bombing destroyed nearly 75% of the region. Since then, Northern Germany has experienced long term impoverishment that continues to contribute to the growing poverty rate.
Despite the growing rate of poverty, the country is aware of the issue and is actively working to eliminate poverty in Germany. The country is continuously creating more jobs and working towards a stronger economy. Additionally, Germany also raised its minimum wage in 2015 to 8.50 euros an hour. Experts believe that this increase in the minimum wage helped approximately 4 million people grow their wealth. The country has also strengthened support for vocational training in an attempt to increase the amount of employed low-skilled workers. Germany is aware of the economic inequality facing many of its citizens and is working hard to create more policies that help the poor escape poverty’s clutches.
Poverty in Germany is a pertinent issue. Despite the country’s wealth and economic growth, the rate of poverty continues to rise, consistently reaching new highs every year. Although the issue of impoverishment may seem overwhelming, the German government continues to persist and develop programs designed to eliminate poverty in Germany.
– Paige Musgrave