1 in 7 Germans living on poverty line

[Flashermac]

Bangkok Post

18 Feb 2010

 

 

Nearly one in seven people in Germany, Europe's top economy, lived on the poverty line in 2008, with youngsters most affected, a study from an influential economic institute said Wednesday.

 

Around 11.5 million Germans from a population of approximately 82 million were defined as poor, with 60 percent of the average income, the DIW Institute said, using the most recent available data from 2008.

 

"Young adults and households with children were most affected,'' said Markus Grabka, one of the study's authors.

 

The figure has risen by roughly one third in a decade, the study added.

 

For those aged between 19 and 25, the chances of slipping below the poverty line were even higher, with one in four defined as living in poverty.

 

According to Germany's national statistics office, the average net salary for a full-time worker in 2008 was 41,509 euros (56,926 dollars).

 

Germany, Europe's economic powerhouse, is gradually getting back on its feet after suffering its worst slump since World War II, with output contracting by five percent in 2009.

 

 

[Bangkoktraveler]

According to this website Link Thailand has 10% of their people are in poverty whereas the USA has 12%!

 

Germany is rated with having 11% of its population living in poverty.

 

China's has only 8% of its population in poverty, figure that one out.

[kamui]

According to this website Link Thailand has 10% of their people are in poverty whereas the USA has 12%!

 

Germany is rated with having 11% of its population living in poverty.

 

China's has only 8% of its population in poverty, figure that one out.

 

My guess:

- Some statistics are faked

- The defintion of poverty is quite different in different countries.

There are nearly zero people who can't apply for social security payments in Germany and German social security payments are probably much higher that than the median incomes in developing countries. Additionally German welfare payments include rent and full health care coverage (including dentist, cancer or chronic diseases like heart problems, HIV, e.g.) Therefore being poor in Germany has very different impact on the quality of life compared to the USA or LOS...

 

BTW, our German system is called "soziale Marktwirtschaft", roughly translated 'social capitalism' - not to be confused with socialism. It just means that the Government takes care for the poor and the unemployed and that all tax payers pay their share to run the system.

 

[shygye]

... plus there is a quite active underground economy in Germany to circumvent taxes.

[kamui]

... plus there is a quite active underground economy in Germany to circumvent taxes.

 

Not really, compared to Italy and Greece. For example for shops, there are not that many ways to cirumvent paying VAT. But of course we have our share people working of the book... (especially unemployed seem to do this: receiving welfare payments and working for cash = nice income).

 

But on the other hand the German tax system is so complicated that the middle class and especially the rich and the multi national companies can find many loopholes to reduce or avoid certain taxes. Those don't have to do anything illegal... And as always: the missing tax income will mostly hurt the lower class and the workers, because thir first thing every Government does in times of crisis: reducing spending in social security and infrastructure (schools, public transport e.g.).