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:
"Those who earn 1,500 euros net today,
would actually get long 3,400 euros net."

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:
Prosperity doubling every 25 years!

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:
Instead of prosperity doubling it went all downhill!

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".
Germany would then degenerated into an industrial development land?

How is it that Switzerland has suspended this far without EU and Euro Germany in real wages?

Wage cuts despite double productivity -
how can that be?
Unfortunately, politics and the media cheat around this central theme. You do not see and do not discuss mainly the opposition. For if openly talked about, would inevitably unpleasant truths to light.
It would clear that neither globalization nor the EU have contributed to increased prosperity. Quite contrary to what has been asserted again and again on all sides. This is true even for an "exporter" of Germany. Details ...

It would seem that on the contrary the EU and globalization are systematic prosperity killer!
Because yes, it lights up quite a: a country without proper customs borders can not defend themselves against the global dumping system - a country without customs barriers must inevitably take part in an absurd wagesdumping.
Beneficiaries of wrong economic policies are especially big business, so companies and speculators - coincidentally those who exert great influence on the media and politics.
Details ...


 "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!
By the perverse global dumping system but not only reduces wages and pensions, and working conditions deteriorate. The performance requirements and stress are increasing, the struggle for scarce jobs is getting tougher. For low-skilled workers in our work world is hardly any room - the economy can use only extremely durable top people who do not aufmucken, to be obedient and humble.

How is it possible that economic growth and productivity down steadily, real wages but still fall?

Fig.: To all covert factors Had been taken into account, the real wage decline would have been even greater.

Also: Without the effects of globalization also had productivity increased more!
Because of all the simple, labor-intensive areas that pose a high potential for rationalization were largely shifted abroad (unfortunately we have still continues unabashedly left millions of low-skilled migrants into the country).

"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 ..


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?
The real reasons are displaced because that would expose the people Verdummungs propaganda ( "straight
Germany benefits from the EU, the euro, globalization, its dependence on exports").

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.
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.


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© 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!
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?

A critical look behind the scenes of political machinations:
The dreaded books by Manfred Julius Müller...