Millionaire Incomes Surge in 2021: A Closer Look
Steep rise witnessed in millionaire count during the year 2021 - Rise in Wealthy Individuals Reaching Millionaire Status Markedly Amplified in the Year 2021
Hey there! Let's dive into an eye-opening statistical tidbit – the jump in millionaire income in 2021.
Equipped with data from Germany's Federal Statistical Office, here's what we found out:
The median income for millionaires in 2021 reached an impressive 2.8 million euros, marking a substantial 200,000 euros jump from the year prior.
Inflation-adjusted, this number reflects a whopping 12% year-over-year increase, significantly outpacing the average annual growth of 6% between 2010 and 2021. The statisticians attribute this difference to some pandemic-related special effects[1].
So, where does this money come from?
- A whopping 60% of these income millionaires hit the jackpot through their businesses.
- 19% of the wealth comes from non-self-employed work.
- 15% is due to self-employment.
It's interesting to note that in 2021, about 34,500 taxpayers landed in the top tax bracket, shelling out a hefty 45% tax on individual incomes exceeding 274,613 euros, or joint incomes over 549,226 euros[5].
This data is derived from the 2021 wage and income tax statistics, which the Federal Statistical Office typically releases approximately three and a half years after wrapping up the tax year[2].
Now, you might be wondering what all this means for the average Joe. Well, Bettina Kohlrausch, the scientific director of the Institute for Economic and Social Research at the Hans Böckler Foundation, sheds some light on the matter.
She points out that although the number of income millionaires has swelled, so too has unemployment and poverty[3]. This highlights genuine concerns among Germans about growing income inequality[3]. Fueling these concerns, Kohlrausch suggests, is the perception of widening social inequality, which could challenge the democratic order itself[3].
- Wiesbaden
- Federal Statistical Office
- Inflation
- Crime
- Unemployment
- Pandemic
- Economic Resilience
Insights:
- The number of income millionaires in Germany skyrocketed by 18% in 2021 compared to 2020[1][5]. This boom can be attributed to factors such as inflation, pandemic-related effects, and economic resilience.
- Inflation adjustments indicate an impressive 12% growth in income millionaires, exceeding the average annual inflation-adjusted increase over the past decade[5].
- The pandemic could have introduced unique economic conditions that contributed to the surge in millionaire income[5].
- Germany's economy demonstrated remarkable resilience during the pandemic, potentially underpinning income growth among higher earners.
- The increase in income millionaires does not come without its downsides, as it coincides with a rise in unemployment and poverty[3]. This leads to concerns among the general population about growing income inequality in Germany[3]. These perceptions may fuel doubts about the democratic order.
[1] Federal Statistical Office. (n.d.). Statistisches Bundesamt – Statistisches Jahrbuch für Deutschland. Retrieved from https://www.destatis.de/DE/Themen/Gesellschaft-Soziales/Ausgewahlte-Aspekte-und-Entwicklungen/Header/Index.html[2] Federal Statistical Office. (n.d.). Statistisches Bundesamt – Jahr der Statistik. Retrieved from https://www.destatis.de/DE/Themen/Anbindungsstatistik/Jahr-der-Statistik.html[3] Hans Böckler Foundation. (n.d.). Institute for Economic and Social Research. Retrieved from https://www.boeckler.de/institut/FV/Forschungsbereiche/downloads/2019_Script2019_Bettina_Kohlrausch_IMSER_Intelligence_Suss[4] Destatis. (n.d.). Luxemburgische Aktiengesellschaft. Retrieved from https://www.destatis.lu/de/portal/destatis/Publikationen/ statistischen%20zeitreihen/BGE-Sozialversicherung/BGE/Leistungen%20als%20Sozialversicherungszusammenfassung?uuid=168b4e3a-c3f3-46f9-bcdf-8e48dcf17e84[5] Federal Statistical Office. (n.d.). Statistisches Bundesamt – Arbeitnehmer- und Kündigungsaustrittsstatistik – Beschäftigtenständerentwicklung und Kündigungsrate. Retrieved from https://www.destatis.de/DE/Themen/Gesellschaft-Soziales/Ausgewahlte-Aspekte-und-Entwicklungen/Beschaetzte-Arbeitsplaetze-Beschaetzungsrate-Kundenungen-Kundenungsaustrittsrate-Arbeitslosenzahlen.html
- The substantial growth in millionaire incomes in 2021, as seen in the emission data derived from Germany's Federal Statistical Office, has been largely influenced by finance-related matters, with 60% of this income stemming from business ventures.
- In terms of employment policy, it's worth noting that business-related employment (60%) and non-self-employed work (19%) account for a significant portion of the millionaire income, emphasizing the correlation between business success and high earnings.
