In Germany wages have been falling since 1980. Why?
Everything got worse ... Since 1980, the inflation-adjusted net wages and pensions in Germany dropped by about 15%. And that although the productivity almost doubled. Instead of a usual prosperity growth of about 100%, a significant decline has resulted so in over 30 years. In
concrete terms, this means: The European and global wage dumping competition (caused by the reduction of tariffs), unfortunately the normal wages prevented! Background: The capitalist Enabling Act.
The
rule of thumb of productive progress: |
|
Is expected from 1880 to 1980, the years of war and its consequences out there was in Germany and other industrialized nations every 25 years in a doubling of overall prosperity (real net wages and pensions). |
|
Since
1980, this rule of thumb no longer applies: When
it is said repeatedly, the EU and globalization bring us
more prosperity, then I do not know how the crash would have
been without this supposed "wealth factor". How is it that Switzerland has suspended this far without EU and Euro Germany in real wages? |
|
Wage
cuts despite double productivity - It
would seem that on the contrary the EU and globalization
are systematic prosperity killer!
"Since 1980, real wages decline despite rising productivity. But the causes of this conflict seem to have little interest We prefer debated hypocritical on minimum wages, commuter allowance, higher realms taxes, etc. -.. So over all that distracts from the actual core of the problem".
The
working conditions are getting worse! |
|
How is it possible that economic growth and productivity down steadily, real wages but still fall?
Also:
Without the effects of globalization also had
productivity increased more! |
"But
that's not true, but the wages are
increased!"
The general brainwashing works fine. Many trusting people subject to
public propaganda of success and not even notice how it always goes
in the country downhill. An insightful analysis of the actual wage
developments with an explanation of how the statistics are fined, see
.. here.
Technical
progress into modern industrialized countries about every 25
years to double the wealth. Since 1980, this rule of thumb
is no longer true - instead of real wage increases, there is
only real reductions. So
should we continue as before? Are we on the right track?
Shall we trust that the EU and globalization are our great
savior?
From
1900-1980, the purchasing power (the wealth) has at least five
times!
The unfortunate development of the inflation-adjusted net wages is
often justified by all sorts of adversity now. A mature economy could
after all not grow to the demographic development, the costs of
reunification, etc. are to blame.
But these excuses I can not accept. For a hundred years ago , the "graying" of society began, even then there were social upheavals and seemingly saturated markets - and the follow-up costs of the two World Wars were much higher than that of peaceful reunification. Who sought excuses are once again distracted by the appalling facts, let comparisons seem impossible.
It is clear that from 1900 to 1980, at a time functioning customs borders (without EU and globalization), the general wealth (real wages) have increased fivefold at least! Considering the war and postwar times, so it must be said that the five-fold increase in prosperity, de facto, took place in 50 years.
And since 1980, it's all downhill - which must nevertheless have a reason! And what would be more plausible to assume a global dumping competition as the main cause. Or there is another plausible explanation (I know not)?
Objectives
and background of my work
The since 1980 continued prosperity descent I think is
artificially induced (through the reduction of tariff limits).
But our country and the people need thus not resign - the errors
are correctable, the negative trends reversed. My goal is to
return back to normal conditions - that is, increased prosperity
in line with the ever-increasing productivity. How to Get There, I
detail in my books described.
"What is the value arguments about globalization and the economic problems in Germany, if the outstanding phenomenon of falling real wages is simply ignored with increasing productivity?"
"But
the average person today can still perform much better than
it was 30 years ago ..." Prejudices
are hard to eradicate. Defiantly many contemporaries still
insist that it's much better Otto Normalbürger today
than 30 years ago. Oddly enough, the spokesman of the
"prosperity" theory rarely older than 30 or 40 years - they
hardly have witnessed the then standard itself. Here,
unfortunately, is also always the real wage with
prosperity equated.
It is ignored that to the past to today's prosperity unlike
widely contribute more inheritances, capital gains and
speculation.
It is "overlooked" that the prosperity partly financed on
credit was (higher state and private debt).
It is ignored that the average citizen now much more in his
need to invest training (it is the academics compared
with the then skilled workers) - and eventually also the
clear loser of globalization banished from the
mind.
Are the tens of millions of unemployed, mini jobber,
temporary workers, early retirement, etc. no longer in the
comparative statistics, because now they are no longer
ordinary people? On
top of that also social changes obscure the view. While
there are now more visible symbols of affluence
(cars, homes, trips abroad, etc.), but but often other forms
of quality of life are lost.
Children, for example, can not or will today many young
people despite heavy government subsidies no longer
afford. One should calm even remember: In the supposed
wealth-poor time of globalization often enough a sole
breadwinner to feed the whole family (with almost no
government assistance without child support)
decent.
Addendum
23.03.2010: Tentative
explanations
Since then, real wages and pensions in this country declined develop
since 1980, finally recognize some economists a need for explanation.
It was finally persuaded the German citizens for decades,
globalization and EU (ie the reduction of tariffs) were essential to
protecting and increasing their wealth. So why everything has come
quite different?
The simple answer: "The increase in wealth from 1950 to 1980 was a special case, a fluke of history!" Keep these economists their fellows really for that stupid? Productivity and economy have grown sharply since 1980 - real wages and pensions but declined simultaneously. This paradox is the special case - not vice versa.
The ingenious development of computers, microchips, Internet, etc. should have triggered an unprecedented wealth generation. Why is failed, why is everything fizzles? Instead of finally to come clean wine German citizens and to question the usefulness of the tariff reductions is dumbed down again, deceived and built a new lies legend.
Why
falling labor income? |
Addendum
February 2017:
The Press Club (Theme Donald Trump and the US) from 05.02.2017, the
moderator Mr. Schönenborn
asked (which I otherwise for very competently and impartially
consider) what was going well in Germany, would like in the US half
of the working population earn less today than it was 30 years
ago.
Mr. Schönenborn
so do not get the idea that we in this country have the same problems
(in the US they are only open discussed). In this case the descent
did not even limited us to the bottom, suspended half. Even
throughout the national average, inflation-adjusted net wages and
pensions have dropped significantly. It meets all population groups
with us.
As a
pensioner I have to pay into the statutory health insurance, for
example, 9,000 euros a year. My father 20 years ago everything was
contributory (even tax-free). So the situation has changed!
In our welfare state is constantly re redistributed. The one is taken
away, the other will be given it. And then there is the time, with
the enormous costs of the refugees and asylum seekers (annually at
least 40 billion euros) would have everything to do absolutely
nothing, not a single German citizen for only have to spend one
euro.
Excuse
me!
There is no equality of opportunity - even when it comes to forming
opinions. While the capital (corporations, speculators, lobbyists,
media, governments) can afford the best translators, I have to settle
for a simple language program for financial reasons. I hope, however,
that the text is nevertheless reasonably understandable and that no
major mistakes have occurred. Thank you for your
understanding.
Manfred Julius Müller, 24939 Flensburg (Flensburg has approx. 90,000 inhabitants and lies on the German-Danish border)
Background &
Analysis:
A
list of the currently available translations into English can be
found here.
Unpopular
truths from Germany. The capitalist world by no means functions in
the way that the human being is brainwashed. The hottest political
taboo topics. The tough fight against false doctrines and
prejudices.
© Manfred Julius Müller, Flensburg, Februar 2011, Nachtrag 2017
Manfred J. Müller has been analyzing global economic processes for 40 years. He is considered a pioneering thinker. For example, 20 years ago he called for a kind of supply chain law that obliges manufacturers and dealers to only import fairly remunerated and produced goods to Germany (finally became law in May 2021). He has also long recommended a minimum profits tax for large companies on domestic sales (Joe Biden's proposal for a global minimum profits tax in spring 2021 is finally moving in the same direction, but is far too lame and will hardly be implemented internationally). Manfred J. Müller has also been fighting for his idea of wage cost reform for three decades (gradual reduction of social security contributions with counter-financing through value added tax and customs duties).
Through
decades of brainwashing, the corporate lobby has succeeded
in making radical ideologies a matter of course! A
critical look behind the scenes of political
machinations:
Through
an army of loyal politicians and sympathetic journalists and
the superiority of their opinion factories, system-owned
economic institutes producing desired statistics, etc., they
have brought about social changes and laws that only serve
their special interests. This can be seen, for example, in
the development of earned income (real net wages and
pensions have been falling in Germany since 1980) on the one
hand and the gigantic jumps in profits on the other (such as
with shares and dividends). Should it always go on like
this?
The
dreaded books by Manfred Julius
Müller...