House ownership makes wealthy – especially in the West of Germany – The Forum New Economy Der Spiegel
One becomes wealthy in the Federal Republic with enterprises or real estate. But even 30 years after reunification, the East still lags behind the West when it comes to ownership of apartments and houses. This is shown in a study by DIW researchers commissioned by the Forum New Economy.
PUBLISHED29. SEPTEMBER 2020
READING TIME1 MIN
Unlike labor and capital, the supply of land is absolutely limited. Whoever owns a piece can exclude other people from it. Real estate is also playing an increasingly important role in the growing inequality in the distribution of income and wealth. Instead of asking directly about wealth, the question would usually suffice: Are you still renting – or do you already own it?
This is shown by Charlotte Bartels and Carsten Schröder of the German Institute for Economic Research (DIW) in a study commissioned by the Forum for a New Economy initiative, which will be presented in Berlin on Tuesday before the anniversary of German unity. It is a study that reveals huge differences between East and West even 30 years after reunification.
The full article by Alexander Preker at Der Spiegel can be found here: Study on Wealth and Income