A study in Germany has revealed that the income inequality between the rich and the poor is increasing. According to the study, people’s anxiety about the future and fear of poverty have increased in the country.
The German Institute for Economic and Social Research (WSI) announced in a study it published that the income inequality between the rich and the poor in the country, as well as people’s anxiety about the future and fear of poverty have increased. According to the research by WSI, a division of the Hans Böckler Foundation based in Düsseldorf, income inequality is increasing in Germany, Europe’s largest economy. Accordingly, the Gini coefficient, an indicator of inequality, reached its highest level between 2010 and 2021, increasing from 0.282 to 0.31. While the rate of people living below the poverty line in Germany was 14.2 percent in 2010, this rate increased to 17.8 percent in 2021. In the study, where those earning 60 percent less than the average income were considered poor, more than a third of low-income people and poor individuals stated that they agreed with the statement, “The government parties are deceiving the people.” WSI researcher Dorothee Spannagel said in a statement on the subject: “We can see from the data that Germany is in a participation crisis that has worsened in recent years. This crisis has a material and an emotional-subjective aspect. The material aspect is most pronounced among people in poverty. For them, immediate material deprivation is a primary concern, and some are relatively openly distancing themselves from the political system. The group of poor people has not only grown since 2010, it has also become poorer compared to the middle class.” According to the study, anyone with a net household income of less than 60 percent of the median income is considered poor, and according to the WSI, this limit is a maximum of 1,350 euros per month for a one-person household and 2,830 euros for a four-person household with two children under the age of 14.
