Hamburg's prosperity: millionaires and the risk of poverty in the shadow of inflation!

Hamburg's prosperity: millionaires and the risk of poverty in the shadow of inflation!

In Hamburg there are warm currents and cold shadows at the same time. While millions supposedly live in prosperity, many Hamburg residents are struggling with rising costs of living. Loud t online A large number of millionaires live in the Hanseatic city. But record inflation, high energy prices and exorbitant rents are causing the image of the wealthy to crumble. The Hamburg food banks are at their limit as new customer groups, especially from the low-wage sector, urgently need support.

The situation is worrying. At the end of 2021, the proportion of full-time employees with low wages in Hamburg was around 15 percent, while 18 percent of full-time employees across Germany are considered poorly paid. Despite higher wages in the city, the majority is eaten up by high housing and living costs. This is reflected dramatically in the at-risk-of-poverty rate: This increased from 17.4 percent in 2005 to 19.8 percent in 2021, according to information from Diakonie Hamburg emerges.

The middle class under pressure

But what does this mean for the middle class? According to the OECD, this is defined as those who earn between 75 and 200 percent of the median income. In plain English this means: A single person is considered middle class if they earn between 1,690 and 3,160 euros net per month. Expressed in euros, the annual gross income for the middle class is between 36,000 and almost 110,000 euros. Shockingly, a city with the highest concentration of millionaires also has a significant number of people living below the poverty line.

The social division in Hamburg is particularly exacerbated by the housing situation. 45 percent of Hamburg households already spend at least half of their net income on rent. Diakonie Hamburg points out that young people between the ages of 18 and 25 as well as single parents are disproportionately affected. In particular, the proportion of people over 65 years of age who are affected by poverty has increased from 9.5 percent in 2005 to 23.2 percent.

Political challenges and solutions

The gap between rich and poor is becoming more and more visible. Policymakers are under pressure to find solutions that go beyond short-term offers of relief. Diakonie Hamburg is calling for legal regulations to combat this social division. Proposals to combat poverty include strengthening public goods, free entry for children and young people to state museums and a social ticket for public transport.

The aim of this poverty reporting is to show the social developments in the city and to address the need for integrated social reporting. Because in a rich country like Germany, social security should not be a privilege, but a basic right for all citizens.

Amid these challenges, it remains to be seen how Hamburg society will deal with these social inequalities. In an urban environment characterized by wealth, no one should be pushed into the shadows.