When do the wages rise
Kangerlussuaq, for example. Markus Völkl laughs. He's been working in the travel industry for 30 years, but it's still fun. Völkl is currently organizing trips to remote parts of the world for engineers from an industrial group. And comes across airports that even he didn't know - after all these years. Kangerlussuaq, for example, in Greenland. There the engineers repair ship engines. Although he never leaves his desk, Völkl feels "up close" on these trips.
Nevertheless, the 53-year-old from Munich doubts whether he has chosen the right profession. This is due to the salary that they transfer to the account. 2000 euros net - after all these years. In 2017 there was another wage increase in his industry, which changed little. 1.5 percent from April, plus a one-off payment: That sounds like more than what remains after almost two percent inflation.
Isn't that a bit poor in the umpteenth year of the upswing in Germany? There are fewer unemployed people than there have been for 25 years, shouldn't skilled workers be scarce and more expensive? Yes, thinks Markus Völkl. And with him millions of citizens. Unusually, however, it is not only employees who think that way, who always want to earn more. But also central bankers like Mario Draghi, who is also calling for more money for workers.
Did wages rise faster earlier? And how would the country get there again? In search of answers, one wanders through post-war history, from the economic miracle to the present day. And learn how the country and the world have changed.
Less innovation, less productivity
In the first decades after the war, salaries skyrocketed (see grafic). The middle class expanded and gained wealth. This was made possible by high growth, pent-up demand in the consumption of cars and refrigerators - and productivity leaps of five percent per year, for example due to the spread of mass production. Productivity is central to understanding wage developments. If the workers in the factory produce 10,500 refrigerators instead of 10,000, these five percent more productivity can increase wages by five percent without additional costs for the company.
But after the stormy early decades, the miracle evaporated. The economy grew more slowly, and soon every household had at least one refrigerator. Because fewer innovations followed, productivity declined rapidly. Today it is usually only increasing by one percent per year, despite digitization. This permanently limits wage increases. After all, productivity is the most important factor in collective bargaining alongside inflation. If wages are to rise faster than productivity and prices, this will increase costs or reduce the profits of the owners - and they will fight back.
- Can i save the world
- Do you like french food
- Are labor rights human rights
- What do we call our own smell
- How do wetsuits work
- What types of food are considered German?
- What is "learn hard and learn smart"
- What makes a person rich
- Eating beetles can make dogs sick
- What is the brutal truth about stress
- Xinjiang becomes predominantly Han Chinese
- What is the smell of burning sulfur
- How do the Chinese feel about work?
- Can we only eat fruit for breakfast?
- American women like Indian men
- What do customer service representatives do
- Arab men are attracted to Nordic women
- Will I ever be a millionaire
- What's the best wheelchair hack
- What is the best salad recipe
- How can libraries be modernized?
- How do I deal with this sex plot
- Pine cones grow into trees
- When can the loss of tax losses backfire?