Wealth inequality in Germany: Finding refutes Oxfam's alarmism

Wealth inequality in Germany: Finding refutes Oxfam's alarmism

According to a report by www.nnz-online.de, an evaluation by the German Economic Institute (IW) shows that wealth inequality in Germany was slightly reduced between 2017 and 2021. Assets have grown above average not only across the board, but particularly in households with low assets. Data from the Credit Suisse Global Wealth Report also shows a slight decline in wealth inequality in Germany.

Wealth inequality in Germany is noticeably higher than income inequality. However, this is due to various factors, such as the strong social network in Germany and the fact that wealth increases, especially with increasing age.

A wealth tax in Germany would be counterproductive in the current economic situation. According to the Federal Statistical Office, a recession was confirmed in 2023 and many business associations reported worsening business. A wealth tax would further burden German companies, limit the scope for investments and worsen international competitiveness.

According to the available data, Oxfam's statement that the rich have become richer and the poor have become poorer is not confirmed in Germany. Rather, the evaluations by the IW and the Credit Suisse Global Wealth Report show a slight reduction in wealth inequality. However, it remains to be seen whether and how political decisions regarding a wealth tax will impact economic development in Germany.