Living in Berlin on and off during the last 30 years has made me acutely aware of the increasing number of homeless in Germany’s capital during the last 3-year span, basically since the price shock has overlapped with other shocks.
What is the cause for this? Well, it is very simple, and it went on unimpeded for decades, it basically meant a war on the poor and ended up transforming cities into unaffordable places and countries with infrastructures that were not buit for the 21st century capitalism.
A look at the figures shows just how dire the situation on the German housing market really is: There is a shortage of over 800,000 apartments in Germany, a figure that is growing. More than 9.5 million people, mostly single parents and their children, live in cramped conditions, according to the Federal Statistical Office. (source DW)
Berlin now looks more and more like SF, and maybe that is a sign of how much inequality is affecting Germany (its index lies close to the US) combined with a lack of affordable housing. The invisibility of poverty in Germany is also part of why it is hardly being addressed, but many have pointed out the strain put on the lower half of the population or what is termed “seller’s driven inflation”, practically driven by rising consumer prices in parallel with energy prices. Certain vulnerable categories are particularly affected by homelessness: women, migrants, LGBTQ+ etc. Australia has now around 500.000 women over 50 or around 50 years old who according to the documentary are on the brink of homelessness. I urge everyone to watch this documentary to get acquainted with the lives of persons who are no different than we are and who’s lives have been affected almost overnight and without any preparation.
This ‘sellers’ inflation’ happens when the corporate sector manages to pass on a major cost shock to consumers by increasing prices to protect or enhance its profit margins. Of course, not all firms have won equally. The bottom line is that sellers’ inflation results in an increase in total profits. This simple truth led Adam Smith to warn, 250 years ago, that profits can drive price pressures. (Isabelle Weber)
“The gap between rich and poor continues to widen in many developed nations. The result: more and more people are finding themselves homeless, with women making up the fastest-growing affected group. They live in their cars or camper vans, sleep on friends’ couches or end up in short-term accommodation: Homelessness in industrialized nations is a growing problem, and increasingly affects the middle class, as well as the poor. While the wealthy can also lose everything, the middle classes are the ones coming under more and more pressure from the ever-present threat of joblessness. It’s a problem also affecting migrants and indigenous communities. Increasingly difficult socio-economic conditions in rich countries are leading to a sharp rise in poverty. The documentary profiles some of those affected in Australia: women who’ve not lost their optimism and humor despite their personal hardship.” (Youtube)
TimeSpace Warps 