What does it mean when the rich get richer
Why a wealth tax is nonsense : The poor need to get richer, not the rich poorer
If the rich in Germany own a lot more than previously known, they should kindly pay more taxes. This line of thought was presented by SPD leader Norbert Walter-Borjans after the publication of the new rich study by the German Institute for Economic Research. In this way, excessive wealth, inequality and public deficits would be combated at the same time and everyone would be satisfied. Unfortunately that's not true.
First of all, in a deep economic crisis, it is not very wise to ponder the reintroduction of the wealth tax. The federal government and parliament are doing everything they can to keep people happy and businesses alive. Threatening them with a wealth tax now has the opposite effect.
Because a large part of the wealth of the rich is in companies, but the tax is levied independently of company earnings, reintroduction would make not only the rich poorer, but also the poorer. It would weaken companies and destroy jobs.
The gap between rich and poor only closes if the now dispossessed manage to build up wealth. For the materially disadvantaged, however, there is hardly anything left to save after renting, supermarket and monthly tickets. In addition, the welfare state itself is not encouraging. A lot is being redistributed in Germany.
Nevertheless, here, as in the Scandinavian countries, wealth is increasingly concentrated in a few hands. According to economic researchers, one reason is: Those who can count on comparatively generous support in an emergency do not have to put as much as a low-wage earner, who is then left to fend for himself.
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Nobody in Germany wants to cut back on the social network. But something can still be changed. Inequality arises and worsens in school. Although more than half of a year graduate school, children from educationally disadvantaged families hardly benefit from this expansion. A good education, however, is the surest way out of poverty.
If Walter-Borjans were serious, the SPD would finally start here. Of course, it takes a long time for education to turn into higher income and wealth. This path is exhausting. It's much more exhausting than the idea of simply making the rich poorer. But it is the only sensible way.
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