Germany: Proposal for a "dowry" of 20.000 euros from the state to all young people

According to the proposal it will be granted at the age of 18 years

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So far we have heard thoughts in various countries about the measure of the minimum guaranteed income for each of their citizens and some have already been experimented with. In Germany, however, thoughts are being expressed about a more advanced step, always with the aim of reducing inequality.

One of the most important economic research institutes in the country, DIW, proposes to the German state to grant to every citizen without exception 20.000 euros at the beginning of his life and specifically upon his coming of age, at the age of 18, to offer him the opportunity to either to study, or to start his own business, or to obtain some vocational training, or even to pay a part of the price for the purchase of an asset. Certainly not to waste them.

The idea is in the same vein as the minimum guaranteed income, a measure that aims to minimize poverty by providing a basic income to all, without any conditions and without even verifying the property status of the beneficiaries.

However, as a relevant report of the German newspaper Deutsche Welle points out, "minimal property" or Grunderbe, as the German term is, is an idea with a history of centuries. However, it stems from the wide gap of inequality in the country and the fact that the poorest 50% of the German population inherits nothing or almost nothing from their family, as the DIW points out. "If we really want to create prosperity for all in the near future, then we must reduce the great inequality through the redistribution of wealth, offering a minimal fortune to those who do not have their own and who are half our population," he wrote. DIW economist and tax expert Stephen Bach suggested.

The amount will be used for studies, vocational training, starting a business or purchasing an asset.

Mr Bach estimates the measure will cost the German state 22,6 billion euros a year, as about 750.000 people grow up in Germany each year. The daring economist does not fail to mention the resources from which this rather expensive measure can be financed. He proposes to increase inheritance taxes but also to introduce a tax on great wealth through the reform of the real estate tax.

As this economics institute points out, compared to other countries with similar incomes, in Germany inequality is higher and wealth is much more concentrated in the hands of a few. The richest 10% of the population controls 2/3 of the total private wealth, the value of which is estimated at about 12 trillion. euros, while the richest 0,1%, ie the richest in the largest European economy, control more than 1/5 of the wealth. Opposite is the poorer half of the population who have no or almost no assets and control only 1/3 of the total private wealth.

According to a study by Forum New Economy, these are families whose members bequeath nothing or almost nothing to their descendants. Defending his groundbreaking idea, Stefan Bach argues that if the minimum wealth measure is implemented, it will increase the wealth of the poorest half of the German population by 57% to 94%. He also challenged the new chancellor, Socialist Olaf Soltz, stressing that "if the new governing coalition really wants to tackle inequality, it must take steps to increase the wealth of the middle class by supporting self-government, to ensure that pensions and provide the Germans with some assets. "

The agreement, which led to the formation of a governing coalition of the Social Democrats, the Greens and the New Liberals of the FDP party, provides for some measures for the creation of property and housing, for private supplementary pensions and for income tax deductions. In Britain, after all, the "Wealth for All" campaign group is urging the government to provide "a decent amount" to those who reach the age of 25 "regardless of their wealth, how lucky or unlucky they are and of how generous their parents are or are not ".

Source: edaily