2023-08-22 19:01:11
It used to be a matter of course for middle-income families to build their own four walls. Image: Picture Alliance
Germany needs a realistic perspective of how prosperity is no longer a question of inheritance. And time is pressing. A guest post.
Mainstream society loses its economic perspective. The bourgeois dream – a house, a car, two children, an annual vacation, and financed with one and a half jobs – seems over. The problem becomes clear when looking at the house price index in relation to the average net income. While real estate prices have doubled over the past twenty years, average net income has risen by just 52 percent in nominal terms.
While it used to be a matter of course for a middle-income family to build their own four walls, today this is often a utopia that can only become reality with the help of parents and grandparents. Anyone who does not have well-off relatives is at a disadvantage when it comes to building up their own wealth. Constant rent payments mean that there is not enough disposable income left over to build up wealth or even assets. Society is also divided into those who live off the achievements of their ancestors and those who can no longer build anything themselves.
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