Criticizing the growth model: Ignoring structural inequality

Critics argue that Germany's growth model is failing the most vulnerable. The boom masks deep structural problems: the rise of precarious jobs, a weak minimum wage, and a tax system that favors capital over labor. While GDP climbs, the bottom third of earners see little improvement. Inflation has wiped out modest gains, and housing costs in cities are out of control. The government's response has been piecemeal—tax breaks for businesses and small increases in welfare—but these do not address the core issue. Real wages have stagnated for years, and the share of national income going to workers has fallen. Moreover, the Hartz reforms of the 2000s created a large low-wage sector, making poverty more likely even in a strong economy. Without a shift toward higher wages, better job security, and progressive taxation, growth will remain unequal. The recent data is a wake-up call: growth is not inherently good if it enriches a few while leaving millions struggling to get by. Policymakers must prioritize redistribution and invest in public services to create a fairer society.