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Domestic demand Minderverdiensten stopped because

First, I thank the interested reader for yesterday's phone call. The aim was to estimate that was, whether in Germany, there is an opportunity for increasing domestic demand and the possibility exists that is possible through increased domestic demand through increased private consumption, an economic upturn.

One of the most important criteria is the earnings statistics - as determined in the micro-census of the Federal Statistical Office on the date 12/2006. Since, as we know, have a first approximation, the gross earnings does not change, you can identify and interpret the numbers from 2006 (about 20 million jobs).

1st Bruttojahrs-/monatsverdienste men / women

Figure 1: Gross annual earnings of male / female

Figure 2: Gross monthly earnings of male / female

When the gross monthly earnings men / women can be quite clearly seen the difference in earnings. It is clear why a unternehmerhörige CDU is increasingly relying on women's work: so that the wage level is lowered further! With decreasing wage levels also reduces the pensioner increments. Thus, the state can save a lot of money. It therefore benefit from increased female labor contractor and the state but not - families.

2nd Sum frequency Bruttojahrs-/monatsverdienste men / women

Figure 3: Gross monthly earnings of male / female

While men and women (in the relative maximum) months of 2450-1500 = 950 € difference exists, there is one thing in common: in the not inconsiderable magnitude is clearly two typical job classes:

  • Low
  • Average earners.

The statisticians say that if a curve has a population of two high points, then two completely different situations are available. Therefore this is the average income of the low-separated clearly! One sees the influence of the 400 € jobs very well!

2nd Sum frequency Bruttojahrs-/monatsverdienste men / women

What does "cumulative frequency"?
If you added up the percentages of each month's earnings classes, then you get the statistical sum frequency. This gives a statement about the distribution of the individual data that allows to say how many percent are below a certain monthly or annual earnings.

Such a number is important when you know that is about 900 € / month, the defined poverty line.

Figure 4: Total gross earnings rate men / women

Figure 5: Total gross monthly frequency of men / women

If we accept the poverty line of around 900 €, then you can see in the above chart 4 that about 30 percent of female workers and about 10 percent of male workers less than the poverty income received. Taken together, therefore, receive about 40 percent of workers less than the poverty income.

3rd Loss of purchasing power by inflation

Not only in Germany-debate, the Federal Statistical Office calculated inflation rate is doubtful. Professor Brachinger has created a special purpose analysis, but unfortunately he used the rather "unfortunate" concept of perceived inflation, however, thinks the perceived inflation by households.

Therefore the following statistics, which shows the different rates of inflation:

Purchasing power at a real rate of inflation ... percent
1% 2% 3%
4% 5% 6% 7% 8% 9% 10%
100 100 100
100 100 100 100 100 100 100
2007 99.00 98.00 97.00
96.00 95.00 94.00 93.00 92.00 91.00 90.00
2008 98.01 96.04 94.09
92.16 90.25 88.36 86.49 84.64 82.81 81.00
2009 97.03 94.12 91.27
88.47 85.74 83.06 80.44 77.87 75.36 72.90
2010 96.06 92.24 88.53
84.93 81.45 78.07 74.81 71.64 68.57 65.61
2011 95.10 90.39 85.87
81.54 77.38 73.39 69.57 65.91 62.40 59.05
2012 94.15 88.58 83.30
78.28 73.51 68.99 64.70 60.64 56.79 53.14

Figure 6: purchasing power losses due to inflation rates of 1% ... 10% for six years (2007-2012)

We know that the EU was looking to date to achieve an inflation rate of about 2 percent. Forget the data of the Federal Statistical Office: there are political provisions of the Federal Interior Ministry, which presides over the Federal Statistical Office.
In relation to this target inflation rate for the observation period, the purchasing power reduced at least by 12 percent, which means you can only buy 9 / 10 in just six years.

We know the show today's discussions of the EU Commission that inflation is under consideration by three or more percent. This means you can only buy 8 / 10 in just six years. About 20 percent are "consumed", not by you but by the value of money.

In connection with the unimaginable money flows is often spoken of a high inflation / hyperinflation. To say that hyperinflation would last six years with an annual 10 percent,

  • Your property is worth only half, the other half is eliminated by inflation (burnt)
  • the state has held a current debt of about € 1.7 trillion, only a debt of 0.85 trillion!

4th Score income development and loss of purchasing power

It is in this article does not define the task to a "fair" wage. That about 40 percent of workers have an income below the poverty line, can not hope regarding a domestic demand.

A required number of states of the EU boost domestic demand (reducing the trade surplus) requires, however, that would be earned in the lower income areas more. The fact that such a claim with considerable resistance from the export-oriented industry in Russia is likely to be clear.

It may also not completed the criticism against the above representations are missing:

Here, only the legal income are recorded. There is growing voices that speak of major undeclared. Yet it is sometimes not very logical, for example, when people drive vehicles that do not meet the self-promulgated by income class. One should therefore be clear: in the above statistics lies no unknown unknown cases, on whose education the state is not interested.

Why the state is currently not interested in fighting illegal? We do not have enough total work. The global economy is on the ground, not only this year, maybe even the next five years. The state would now pursue the illegal, then they would have to be abandoned in the broad style. This means that domestic demand will decline in the proportion of black workers. That would be an additional economic weakness in an already weak period.

A response to 'domestic demand stopped because Minderverdiensten "

  1. Bernd Mueller

    Just found:

    " The chief economist Olivier Blanchard places near the banks of issue, from two to four percent inflation target to increase it. Does that make sense? "

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