Germans Among the Poorest in Europe: ECB StudyGermans are one of the poorest groups in Europe even poorer than those in the troubled peripheral nations of Greece, Spain and Italy, according to the surprising findings of a joint survey by various divisions within the European Central Bank.
No, you are surprised. One reason why its the work shop of Europe. You don't put industry where people want to collect high rent. You going to put a shoe string factory in Manhattan? A fat rentier is waiting, and he has lobbied to lower his wealth taxes and leveraged to the hilt. So your workers have to pay while they ,and you, pay high rents.
According to the report, "the composition of net wealth is primarily driven by real assets", of which the main component is owner-occupied housing wealth.
For countries that don't have high rates of home ownership and have not experienced significant house price increases, net wealth looks more markedly muted, such as Germany, which is "poorer" in terms of net wealth than some countries it bankrolls through bailout programs.
No, you don't say? Lets reinvent the wheel.
The rise of rent is always the effect of the increasing wealth of the country, and of the difficulty of providing food for its augmented population. It is a symptom, but it is never a cause of wealth; for wealth often increases most rapidly while rent is either stationary, or even falling. Rent increases most rapidly, as the disposable land decreases in its productive powers. Wealth increases most rapidly in those countries where the disposable land is most fertile, where importation is least restricted, and where through agricultural improvements, productions can be multiplied without any increase in the proportional quantity of labour, and where consequently the progress of rent is slow.
Ricardo
When rent rises its a sign of monopoly and/or scarcity just like water in a desert rising in value is not a good sign.
House poor is wealthy just like being water poor when it rains. House wealth is like water wealth when it doesn't rain in the desert. Finances improve when their are shortages.
Meanwhile the idiots in the US want housing to go up in value so we can print up some bank debt.
Net wealth according to the findings is substantially higher in Cyprus at 671,000 euros compared to a rather paltry 195,000 euros for Germans.
Banana republic. All that "wealth" is the price industry has to pay to a rentier(fat slug).
Given the macro-economic facts on the ground it might surprise some to learn that Germany as a country overall is 'poorer' than Cyprus, a country on its economic knees, and Spain where unemployment stands at 26 percent, compared to the euro zone rate of 12 percent.
Some? 90% of Americans who are utterly clueless about macroeconomics.
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