Germany has witnessed a significant rise in wealth, yet this prosperity is starkly uneven. The top ten percent of households control a staggering 56 percent of the total wealth, highlighting a glaring income disparity. This inequality is especially pronounced between the eastern and western regions of the country. Households in East Germany possess substantially less wealth compared to their western counterparts, a disparity rooted in lower wages and limited property value appreciation.
The issue extends across generations, perpetuated by gifts and inheritances. These factors contribute significantly to the wealth gap, benefiting primarily those in middle adulthood and those already affluent. Despite a 62% rise in household net wealth since 2010-11, the inequality persists. When adjusted for inflation, this growth is about 39%, yet many still face economic struggles.
A troubling aspect of this inequality is its impact on older adults, with nearly one in four people aged 60 to 79 at risk of poverty in old age. This risk is exacerbated by the uneven distribution of resources, where the wealthiest sections continue to thrive while others struggle. The situation has fueled fears of social descent, extending even into the middle class.
Efforts to address these disparities highlight the need for strengthening public services, labor agreements, and pensions. However, the challenge remains substantial, with Germany ranking among the highest in Europe for wealth inequality. Without substantial policy interventions, these issues may continue to erode trust in democratic institutions and the legal system among those affected by economic precarity.
