22 Dec. 2021 6:15 p.m.
While the German national debt climbed to a new record high in the third quarter, the super-rich have almost consistently made enormous profits in the last two years.
A poorly organized economic policy, the consequences of the Corona crisis and the loose ECB monetary policy are causing the German state’s debt bubble to swell to a record level, like that Handelsblatt reported. At the end of September 2021, federal states, municipalities and social security, including all extra households, were together in the red with a good 2.284 trillion euros.
Corona crisis causes federal debt to explode
That is 5.1 percent or 111.3 billion euros more than at the end of 2020, according to the Federal Statistical Office on Wednesday announced. This can be attributed “especially at the federal level, but also in some countries to measures to cope with the corona pandemic”.
With the exception of social security, liabilities increased at all levels of government. The federal government recorded the largest share with an increase of 7.2 percent or 101.4 billion euros to around 1.505 trillion euros. At the end of the third quarter, the federal states were in debt with 645.2 billion euros, which corresponds to an increase of 1.4 percent or 9.2 billion euros in 2020.
In a state comparison, Bavaria and Saxony are growing the most
The highest percentage increases compared to the end of 2020 were seen in Bavaria (+12.4 percent), Saxony (+11.0) and North Rhine-Westphalia (+6.0). The Federal Statistical Office said:
“The increase in Bavaria resulted in particular from a higher need for spending on measures to cope with the corona pandemic.”
In Saxony, the increase resulted in part from recordings for the “Corona coping fund”. The increase in North Rhine-Westphalia is due to an increase in the state’s securities debt for the “special fund to finance all direct and indirect consequences of coping with the corona crisis” and the Erste Abwicklungsanstalt (EAA), the bad bank of the former WestLB.
The super-rich benefit massively in the corona crisis
While on the one hand the mountain of state debt is growing, the middle class and above all artists, stand builders or restaurant specialists have massive livelihood problems, in Germany the number of super-rich with assets of more than 100 million euros rose to 2,900 people during the Corona crisis.
At the top of the super-rich Germans would be Beate Heister and Karl Albrecht junior, the children of ALDI founder Karl Albrecht senior, like t-online reported. They were able to increase their wealth in Corona year 2021 by around 6 billion to a total of 39.2 billion US dollars. Dieter Schwarz is in second place. The 81-year-old, who owns Kaufland and Lidl, got around 17 billion US dollars richer in the Corona crisis. Its total assets are currently 36.9 billion.
Klaus-Michael Kühne achieved even greater wealth growth than Dieter Schwarz: the entrepreneur accumulated more than 22 billion US dollars in the past year.
Theo Albrecht junior, also an ALDI heir, is among the ten richest Germans; Susanne Klatten and Stefan Quandt, heirs of the BMW Group; Reinhold Würth, who got rich selling screws; Georg Schaeffler, heir to the Schaeffler auto supplier group; Alexander Otto, heir to the Otto Group and Managing Director of the ECE Group, which operates shopping centers; and Andreas Strüngmann, who founded the pharmaceutical company Hexal together with his brother (11th place).
Consistently all billionaires in the German top 10 list increased their assets in the past year. Further down the list, however, new billionaires have also been added, such as the Biontech founder Uğur Şahin. His fortune quantified Forbes currently at four billion US dollars.
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