2023-09-07 11:37:42
How do you deal with the money that is still available at the end of the month? Image: Lucas Bäuml
People with a lot of money invest differently than people with less wealth. This exacerbates the contradictions. The planned “generational capital” is intended to change that. A guest post.
The distribution of wealth in Germany is very unequal. According to the most recent “Household Finance and Consumption Survey” conducted by the European Central Bank in 2017, the richest tenth of households had an average of just under 1.25 million euros. The poorest 50 percent, on the other hand, only have an average of just under 10,000 euros. The reasons for the large differences in wealth are as diverse as wealth serves different economic purposes.
First of all, from an economic perspective, “wealth” primarily means the ability to incur future expenses that exceed income. Therefore, for example, retirement provision is a central motive for wealth creation. But other situations in which income and spending desires diverge also play an important role in the decision to forego current consumption and build wealth. These could, for example, be phases of unemployment or part-time employment.
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