Real wages plummet: What you should do

Last Updated: 23. Februar 2024By

Mismanagement and high state deficits can ruin a country’s currency – as is currently happening in Argentina. Newly elected government leader Javier Milei wants to get a grip on the problem of devaluing money by abolishing the country’s own currency and replacing it with the US dollar.

Today, we want to provocatively compare the soon-to-be abolished Argentine peso with the euro, because unfortunately, mismanagement and high state deficits also rule here in Germany – although we have not sunk as low as Argentina, urgent measures are needed to avoid a long-term decline.

Are our politicians turning Germany into a wasteful state? Germany has mutated into a wasteful state that is impoverishing its citizens. Take a look at this chart showing the development of real wages in Germany:

Chart from „Sicheres Geld“

Real wage decline over the past three years was 6 percent. The citizens have worked hard and boosted the economy, but they received less money in return. These are the consequences of a political waste crisis.

Politicians like to blame the decline in real wages on high inflation, but that is a lazy excuse. Take another look at the chart. In the 1970s, despite high inflation rates, real wages rose by a whopping 4.7 percent per year. This is proof that the recent decline is due to waste. It is a removal of wages through redistribution to foreign countries and the public sector.

State spending has dramatically increased. Between 2019 and 2022, the state’s share of the economy, or the proportion of state spending in relation to economic output, has risen by 4.5 percentage points or 10 percent. Politicians are implementing one expensive project after another without cutting spending elsewhere. This inevitably leads to impoverishment, as we can see from the decline in real wages.

One of the SPD’s election promises was well-being for employees, but the opposite is true, as the increased share of state spending limits the options of every individual citizen. And even worse: because the government is wasting money, there is a lack of resources in other areas. It is possible that taxes will be raised later this year so that the elected representatives can continue to finance their own wasteful habits.

Take responsibility now. The politicians in Berlin could still turn things around, but will they succeed? We don’t know! Therefore, do not trust politicians, but take care of yourself. You can offset real wage losses, especially by investing in physical gold.

Find out why gold investments offer the best protection for your assets in these times of crisis by reading „Sicheres Geld“, an advisory service for critical investors who want active asset protection. Numerous readers are already benefiting from it. They have been able to protect and increase their assets in recent years with the recommendations from „Sicheres Geld“. You can do the same. Get to know „Sicheres Geld“ now.