ALLIANCE FO§ DEMOCRACY

An OECD report says: The crisis particularly affected young people

The recently published report by the Organisation for Economic Cooperation and Development ( OECD) found that the income gap in the developed, western countries since 2007 (the start of the crisis). The poor are becoming ever poorer, the rich ever richer – in the face of these extremes, young people have little prospect of an affluent life, says the Organisation, which unites the 34 economically strongest countries.
The number of those affected by poverty is increasing in countries such as the USA, Greece, Spain, Italy and Germany. In many of these countries, the differences are cushioned by tricks with taxation policy and transfer payments, but still the income losses (OECD average) of the poorest 10% are still twice as high as the most affluent 10% of the relevant population.
The displacement of the risk of poverty from the old to the young was further consolidated, because those who receive no pension at the moment will be followed by those whose pensions and life insurance have been plundered in order to prop up the Euro, and who will therefore receive little or no pension. The statistics will then note that the number of pensioners who also (have to) earn a little more from mini-jobs will increase further. The new agency AFP reported on 24th June 2014 that the number of Germans who still work after reaching the age of 65 is increasing. At the end of June 2013, there were nationally 829,173 mini-jobbers who were at least 65 years old. This was nearly 36,000 more than in the previous year, and almost 270,000 more than in 2003 (statistics of the Federal Employment Agency). Nearly 137,000 mini-jobbers were more than 74 years old. So since the pension is hardly sufficient today, and the anticipated costs of basic social security will rise by 15 to 20%, this is further compounded by falling pensions, the decline in value of the Euro and increasing costs – an infernal trio.
The risk of poverty is highest amongst young people between the ages of 18 and 25. The OECD judged in its last report, which appeared two years ago, that with its increasing number of low-earners and low wages, Germany would soon be one of the countries in which it is almost impossible for young people to find a healthy income structure. It is thereby irrelevant whether the number of unemployed rises or falls, the army of low-earners must not be allowed to get any larger. Minimum wages would help in this respect. OECD General Secretary Jose Angel Gurria therefore praised the introduction of a minimum wage in Germany. It is just a shame that German politics missed the opportunity of setting a real minimum wage, which could also apply as a net value. The national minimum wage of € 8.50 recently decided by the Cabinet is to come into effect from 2015, although it will not apply for young people, the long-term unemployed and sectors with low tariff agreements, or in other words those who are most affected by poverty. The news agency Reuter’s also reported that there would also be special regulations for harvest workers and newspaper delivery staff. A national tariff regulation is being discussed for harvest workers, which would allow their wages to fall below the minimum wage by the end of 2016. After all deductions, € 8.50/hour gross is also no reasonable amount, because in this way, € 8.50/hour quickly becomes on € 5.00/hour, and who can get by on that?
The minimum wage is to be decided before the summer break (in July), and is to apply from 2015. An increase in the minimum wage is planned for 2018. However, this decision will no longer be up to the Employment Ministry, but to an independent Commission. The Federal Government will then decide by legal ordinance. Which means: The Federal Government will not allow any increase, because there is nothing left in the state coffers.