4 ms·
What the article fails to mention: > The median wealth of a household in eastern Germany stood at €43,400 in 2021, compared to €127,900 in western Germany. Ev
by lispm 3y ago
What the article fails to mention:
> The median wealth of a household in eastern Germany stood at €43,400 in 2021, compared to €127,900 in western Germany.
Even almost 25 years after the reunification, there are large differences between East and West, even though large sums of money were transferred into East Germany. For many charts (income, stocks, ...) one can clear see the difference between East and West Germany. That's one of the unsolved problems...
- soco 3y agoAre there still people living in East Germany, I mean who didn't move to the wealthier West? And if yes, why aren't industries and everybody moving their factories and whatnot to cheaper centers? Because all they do is offshore? I understand offshoring has capped, maybe they'll finally notice what's directly under their noses...
- lispm 3y agoYes, there are people living in East Germany. The larger cities (Berlin, Leipzig, Dresden, ...) are doing kind of okay, but the less populated regions struggle a lot and people are moving away. > Because all they do is offshore? Germany can do nearshore, since there are countries next/near to Germany with lower wages/costs, which at the same time are in the European Union. A common large economic region (the EU and its associated countries) makes nearshoring attractive. Thus "East Germany" is often in competition with other EU countries for new factories.
- tharmas 3y agoEast Germany was stripped bare by the Soviets after WW2 and then by the Globalists after the fall of the Berlin wall, so its no wonder its poorer. Yes, Western Germany poured money into Eastern Germany post Berlin Wall but was that really going to help if you strip all of its assets for cheap? Out of all the Soviet bloc states East Germany had the highest standard of living. This despite the draconian dismantling of its Industrial base by the Soviets.
- locallost 3y agoLarge sums of money were transferred out of East Germany too. E.g. a lot of real estate was bought of by investors from the West. Unsurprisingly because the economy of the east was crushed after reunification. Of course it's a question of where the money flows from and to. The money flowing into East Germany comes from taxes, paid by all. The money flowing from East Germany ended up in the pockets of "investors". Which is yet another example of why inequality is rising.