Poverty and Inequality in the Federal Republic of Germany

Abstract

Why is the Federal Republic of Germany a case of interest at all to be considered in a handbook on poverty and inequality? Three reasons come foremost to mind. First, Germany holds a dominant economic and political position within the European Union, making changes in poverty and inequality highly significant beyond its borders. Second, Germany is often considered a prime example of a "coordinated market economy" with a conservative and corporatist welfare state. Examining the country’s rising poverty and wealth disparities provides valuable insights into the strengths and limitations of this institutional model. Third, Germany’s post-World War II history created unique socio-economic structures. The reunification of West and East Germany in 1990 merged two vastly different systems, resulting in distinctive patterns of inequality that persist today.