Income Inequalities – Germany Repeating the US Disaster

In Germany market economy is social, unions strong and income disparities refreshingly small. While not completely wrong, this is not quiet true anymore. New figures suggest that in the last decade despite rapid economic growth and exploding wages for already high-income earners, the lowest income class has suffered a significant net loss in purchasing power.

Noteworthy! The US feature the biggest income inequalities of all western developed countries. In the richest and most powerful country ever, one in seven people, more than 45 million people (many of them despite having a paid job) live on food stamps, struggle to provide proper education for their children and are frustrated by lacking life perspectives. In order to not follow that self-destructing way, Germans should start doing something about it now. Reasonable minimum wages and significant investments in (public!) education, integration and pre-school activities can help a great deal. It is a fact that rising incomes for already well off people does not makes them any happier in life. Therefore, rising income inequalities decrease gross national happiness.

Source: Zeit

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