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Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
Keywords: Germany Social Decline, Germany Inequality,
A professor of sociology at the University of Basel describes the growing inequality in Germany, in graphic terms. For the lower middle class the efforts to gain upward mobility are like trying to move up on a downward escalator. About one third of jobs are temp jobs which lack the protections of permanent jobs which were at one time 90% of all jobs. Her book is titled- "The Hidden Crisis; German Social Decline at the Heart of Europe."
Nachtwey says on the surface Germany has become competitive and has maintained its growth rate, benefiting from the strong manufacturing sector with trade surpluses, low unemployment. Yet this conceals the underlying crisis of the cost which this has come at- a persistent erosion of the social compact of one elevator where everybody moved up together that was the norm in the early postwar period, fulltime employment, a strong welfare state. Job protections weakened, and while manufacturing sector pay remained stable or rose, less skilled and low wage workers suffered.
This has also led to the fracturing in the vote with the fragmentation of political parties following the refugee crisis and the weakening of centrist parties. Voters are now open to different messages after the increase in inequality and uncertain economic future for the lower middle class.
Inequality in Germany
12/06/2011
Grouped Articles
OECD report cites rising income inequality - The Washington Post
Washington Post 12/06/2011
German elections pit Merkel, challenger over poverty problems - The Washington Post
Washington Post 09/17/2013
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
Germany's Social Democrats Agree to Coalition Talks With Merkel
Wall Street Journal 10/21/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
German politics: Of scissors and biting
Economist 03/13/2013
Poverty in Germany
09/12/2016
Grouped Articles
Study finds 2 million poor children in wealthy Germany | Germany | DW.COM | 12.09.2016
DW.COM 09/12/2016
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
Wage protests at Amazon.com Germany
09/09/2010
Grouped Articles
Amazon Wage Dispute Spreads Beyond Germany
Wall Street Journal 12/17/2013
German Recovery Spurs Push for Higher Pay
Wall Street Journal 09/09/2010
Amazon's Current Employees Raise the Bar for New Hires
Wall Street Journal 01/08/2014
Workers at an Amazon Warehouse Reject Forming a Union
New York Times 01/15/2014
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
IG Metall union in Germany and German wages
08/03/2010
Grouped Articles
In Germany, a Broad Recovery Is Under Way
New York Times 08/03/2010
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
German Workers' Wages Belie Country's Rebound
Wall Street Journal 08/17/2010
German Recovery Spurs Push for Higher Pay
Wall Street Journal 09/09/2010
Europe Moving Toward Small Steps to Promote Growth
New York Times 05/10/2012
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
The case for the minimum wage in Germany
03/29/2014
Business and labor organizations both support increasing the minimum wage and see a modest impact on jobs in March 2014. A key is that business has 2 years till 2017 to adjust in the new proposed law, and that the proposed $8.50 is already close to 50% of the median wage. The impact in improving wages will be felt in the lower wage restaurant and service sector, and in the eastern part of Germay. About 5 million workers would benefit. There are also exemptions for young workers of 18 years of age and workers with long periods of unemployment, a clause that could also be adopted in the U.S. to minimize impact on job loss.
Grouped Articles
German Minimum Wage Plan Gains Backing From Businesses
Wall Street Journal 03/29/2014
Swiss to Vote on $25-an-Hour Minimum Wage
Wall Street Journal 05/16/2014
Australia Weighs Whether Its Minimum Wage Is Too High
Wall Street Journal 01/26/2015
Trump era confronts organized labor with gravest crisis in decades
Washington Post 12/09/2016
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
The expansion of the low wage sector in Germany as unemployment drops
08/17/2010
Grouped Articles
German Workers' Wages Belie Country's Rebound
Wall Street Journal 08/17/2010
German Recovery Spurs Push for Higher Pay
Wall Street Journal 09/09/2010
German Minimum Wage Plan Gains Backing From Businesses
Wall Street Journal 03/29/2014
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
Women and low wage minijobs in Germany
08/14/2010
Germany's Ministry for Family Affairs recently completed a study showing minijobs for women in retail, healthcare and other fields puts women in deadend jobs and a situation of "lifelong economic powerlessness and dependence for women." The numbers for minijobs paying low wages in parttime work show large increases in 1999-2010, the same period when unemployment declined in Germany to 6.9% by 2013.
Grouped Articles
'Minijobs' Lift Employment But Mask German Weakness
Wall Street Journal 05/29/2013
German elections pit Merkel, challenger over poverty problems - The Washington Post
Washington Post 09/17/2013
Women Reach a Milestone in Job Market
Wall Street Journal 11/18/2013
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
German Coalition Reaches Deal but Faces Tough Party Vote
Wall Street Journal 11/27/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Der Deutsche Sparer- German savers and low interest rates of 0.25% in Germany
03/03/2012
Only about 9.4 million Germans own stocks and mutual funds. German savings are much higher than int the U.S.- about 10% compared to 5%. The low interest rates and conservative approach of workers and middle class in avoiding equity investments especially after the 2008-2009 financial crisis means that their savings are falling behind inflation and declining in value. Media reports in Bild and Der Spiegel are critical of this transfer of wealth from workers and the middle class to upper income Germans. Increase in stock and mutual fund investments by Germans are still only about 5%, with a 5% decline in savings deposits, meaning workers and middle class still are risk averse to equities.
Grouped Articles
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Euro-Zone Inflation Returns to Record Low
Wall Street Journal 02/02/2014
Low Rates for Savers Are Reason for Complaint - Fair Game
New York Times 03/03/2012
German politics: Of scissors and biting
Economist 03/13/2013
Euro Zone Edges Closer to Deflation
Wall Street Journal 03/29/2014
The fourth poverty and wealth report and the idea of missing social solidarity or "gerechtigkeit" in Germany
03/09/2013
Grouped Articles
German politics: Of scissors and biting
Economist 03/09/2013
German politics: Of scissors and biting
Economist 03/13/2013
Study finds 2 million poor children in wealthy Germany | Germany | DW.COM | 12.09.2016
DW.COM 09/12/2016
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
The minimum wage in Germany
08/17/2010
Grouped Articles
Germany's Social Democrats Agree to Coalition Talks With Merkel
Wall Street Journal 10/21/2013
New York Times 12/01/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Amazon Wage Dispute Spreads Beyond Germany
Wall Street Journal 12/17/2013
German Workers' Wages Belie Country's Rebound
Wall Street Journal 08/17/2010
Merkel Caught In Middle On Wages
Wall Street Journal 12/26/2013
Low wages in minijobs as the blemish in the "Jobswunder" in Germany
05/26/2010
A quick look at the graphs for the increase in low wage jobs and the reduction in the number of people classified as jobless in Germany for 1999- 2010 shows a disturbing trend beneath the good numbers- a significant part of the increase in jobs is made up of low wage jobs. In the beginning the minijobs and tax free income for upto 450 euros a month earned on a minijob was designed to be a ladder to full time jobs, but this is now clearly not the case as most offer no future prospects for full time work. Many of these workers are women in retail, restaurant and other parttime work and leads to further dependency and dead end status for them.
Grouped Articles
'Minijobs' Lift Employment But Mask German Weakness
Wall Street Journal 05/29/2013
New York Times 05/26/2010
German elections pit Merkel, challenger over poverty problems - The Washington Post
Washington Post 09/17/2013
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
German Coalition Reaches Deal but Faces Tough Party Vote
Wall Street Journal 11/27/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
Germany and the child care education workers strike in June 2015- national priorities and a question on wages of service workers
06/05/2015
Should child care workers required to have 3 years of training and often a college degree make the same as entry level workers in manufacturing, even after they have worked in the field for many years, is the question about national priorities that is being posed in Germany in 2015. Has Germany's economic revival left behind many workers outside manufacturing, who lack the strong representation of manufacturing unions, including workers in a field so closely allied with education- early child care education which takes place in child care centers.
Grouped Articles
German Child Care Workers’ Strike Brings Debate on Priorities
New York Times 06/05/2015
The New York Times 02/23/2017
How Child Care Enriches Mothers, and Especially the Sons They Raise
The New York Times 04/20/2017
The real issues at Women20 | Business | DW.COM | 26.04.2017
DW.COM 04/26/2017
Opinion | It Doesn’t Matter Who Replaces Merkel. Germany Is Broken.
New York Times 12/07/2018
The growing low wage sector as downside of Germany's improving unemployment rate in 2009-2013
01/04/2008
The unemployment rate dropped to 7.6% in Germany in 2009 an 6.9% by 2013. Experts says this is a result of the rapid growth in the sector paying low wages.
Grouped Articles
'Minijobs' Lift Employment But Mask German Weakness
Wall Street Journal 05/29/2013
German elections pit Merkel, challenger over poverty problems - The Washington Post
Washington Post 09/17/2013
Europe's Easy-Money Policy Snubs German Savers
Wall Street Journal 11/25/2013
Americanized Labor Policy Is Spreading in Europe
New York Times 12/03/2013
German Recovery Spurs Push for Higher Pay
Wall Street Journal 09/09/2010
Europe Moving Toward Small Steps to Promote Growth
New York Times 05/10/2012
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