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Dec 9, 2023Liked by Jörg Luyken

Given that new housing construction has practically come to a halt (and renovations to bring old housing up to modern energy-efficiency standards have as well), it's likely that overall housing costs (and energy costs) will only continue to rise, along with inflation. Since as Gavin said, it's clear that we are (or will be shortly) in a low wage economy for the folks at the bottom, that is indeed the problem.

As for the Ukrainians, it's quite clear that it's unlikely they are going anywhere for the next few years, and unfortunately (for them) if things go badly in that country, we'll probably have a lot more arrivals. Given the shortage of skilled workers now - and the ever-growing shortage caused by the baby boomer-generation retirements, it is necessary to employ them at the skill level they have, particularly in the medical area. Before 2022, Ukrainians were some of the best in the world in their respective fields and had some excellent research facilities, and they trained lots of medical personnel from all over the world. It's in Germany's best interest to take advantage of any "brain drain" and encourage Ukrainians to settle here.

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Interesting parallels with the welfare/work system in the UK. One of which is that those that don't work are seen as 'lazy.' Amplified by Conservative politicians and their media friends. With a minimum working wage of 1,400 Euros and Burgengeld of approx 1,200 Euros it's clear that to survive on anything less would be very difficult. All very laudable (yet unfair to others) that Ukrainians are treated to the best employment training and opportunities but then don't take them up. No pressure there then. It only pays to work if it pays you enough to have a reasonable life. If you work 35/40hrs pw and can't afford to put food on the table or pay the bills and then have your low wages topped up by the State you are working in a low wage economy. That's the problem. Not Burgengeld.

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