Tipping point: Germany’s prosperity is shaking. Getty Images/fhm; Montage: infographic WORLD
In no other industrialized country have working hours fallen as sharply as in Germany. That would not be a problem if productivity increased. But she doesn’t.
Germany’s prosperity is shaking. Falling real wages, a lack of workers and more old people are further signs of growing problems.
Economists call for better incentives to work more and longer. For example, through tax reforms or immediate work permits for immigrants.
The incomes of average earners can no longer keep up with inflation, and the standard of living is collapsing. This will not change until productivity increases. Otherwise, there will soon be dramatic distribution conflicts.
Germany has a problem. The formerly tried and tested prosperity machine has stalled. Despite the economic crisis, employment remains at a high level. But in the middle of society Wages and salaries are only increasing slowly – recently even significantly lower than consumer prices, resulting in a loss of real wages. Such a break in the standard of living is unique in the history of the Federal Republic, and it could in a sense be the foreshadowing of a much greater shock.