Rich Reich

Deutsch: 10 Euro Gedenkmünze 2007 - 50 Jahre D...

Deutsch: 10 Euro Gedenkmünze 2007 – 50 Jahre Deutsche Bundesbank, Wertseite (Photo credit: Wikipedia)

Proposition: The Germans should bail out the rest of the Eurozone.

Rationale: The Germans are richer than everyone else in the Eurozone.

Evidence:

Truth 1: Germany’s total GDP is €2.6 trillion, comfortably ahead of France (€2.0 trillion) and Italy (€1.6 trillion). (source: countryeconomy.com/gdp)

Truth 2: Germany has the most millionaires in Europe (one million people with investable assets of over $1 million) (source: Capgemini World Wealth Report)

Truth 3: German GDP per capita is €32,399, just ahead of France (€31,100) but behind Belgium (€34,100), Ireland (€35,600), the Netherlands (€35,900), Finland (€35,900), Austria (€36,600) and Luxembourg (€83,600). (source: countryeconomy.com/gdp)

Truth 4: Germany’s median net wealth per household is just €51,400, much lower than Greece (€101,900), Italy (€173,500), Spain (€182,700) and Cyprus (€266,900) (source: ECB)

Truth 4 is startling, and is best explained by the very low rate of home ownership in Germany compared to other countries, as well as the legacy of East German integration and the smaller average household size found in Germany.

Conclusion: The German economy is the biggest in the Eurozone (Truth 1), but aside from a bunch of very wealthy individuals (Truth 2) Germany’s people are not the richest.  Looking at Truth 3 and Truth 4 it is easy to see why many ordinary Germans feel thoroughly aggrieved at the idea of having to bankroll the rest of the Eurozone.

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3 thoughts on “Rich Reich

  1. Those trues are not so true. The evidence today is that countries with financial aid are getting poors, and countries of the north are getting richer, more and more. Numbers are easy to manipulate, it depends only the point of view you want to look at.

    • Thanks, telmoquadros. Numbers certainly are easy to manipulate, and that’s one of the reasons for this blog. Another factor to consider is which Germans would be paying for the bailout — the burden would fail primarily on successful businesses and wealthy individuals through their taxes. Perhaps that makes it fairer? On the other hand less tax will then be available to pay for welfare and health services for poorer Germans. Many truths to consider.

      • Thanks. They are not really paying, they are just getting richer. Look at Portugal’s situation, if you have time, and see the numbers. In this case, you can see the number on the street even…is it fair to lead a population to poverty, to have 20% of unemployment, to get more taxes, work more and get less money? Did you know that are people working in slavery conditions, with 200 or 300 euros per month? We wonder how, but it’s true. But we are paying our bills. But at what price? Tomorrow there will be nothing in this country. I know we made mistakes, for sure, but we also were incentivated to commit them. Thanks for your attention.

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