Diversity helps make people unique, but in the US and Germany, it gets in the way of becoming financially independent. People of foreign descent, who speak a language other than English, or who belong to a different culture often find it difficult to find a job, which is an indication that diversity is not fully welcomed in American employment systems. Proficiency in English and completion of their education at an American university are frequently prerequisites for employment. According to Wang et., al (2021), individuals from diverse backgrounds attempt and are unable to overcome this obstacle, which keeps them in poverty. Likewise, proficiency in German and attendance at an institution in Germany or another European country are prerequisites for employment in Germany. People of diverse backgrounds unfortunately often end up in poverty because they are unable to meet these standards because German is not their first language and they were educated outside of Europe.
US wealth inequality is one of the largest economic disparities. Inequality, lack of education, and employment contribute to poverty. According to the 90th-to-10th percentile ratio, the US income gap declined from 13.53 in 2021 to 12.63 in 2022. Income dropped 6.7% from 2021, with the top 12.63 times more than the bottom. Similar to most industrialized nations, the US income gap is comparable before taxes and transfers but increases dramatically afterward (Singh & Lee, 2021). American high school dropouts may have earned less after 1965 due to increasing immigration rates of unskilled workers. Similarly, Germans have more social welfare than Americans, yet they also have persistent income disparity. The German think-tank DIW reports that a typical German citizen in the top 1% of income has a personal worth of at least 800,000 euros ($1.09 million), while 25% of adults have no wealth or negative value due to debt (Daniele, 2021). Income inequality persisted because of East-West Germany’s reunification; when Eastern German industries and society trailed behind the West.
Housing affordability is a major issue in the US and Germany. Individuals, families, and communities suffer socially and economically from inadequate, affordable, and accessible housing. Poor housing reduces human capital, affecting low-income households’ physical and mental health, education, and productivity. In the US, this issue is exacerbated by high borrowing rates, little inventory, and millennials seeking larger homes to raise children. According to Redfin (2023), White households can afford more listings than Hispanic and Black households, who’ve endured decades of housing discrimination. The average Black household could afford only 7% of listings in 2023. Similarly, affordable housing is a difficulty in metropolitan Germany. According to Danaj &Wagner, (2021), Berlin, where soaring rents have caused housing insecurity, is especially affected. Up to 70% of Europeans own their homes or apartments. DW reports that Germany’s average ratio is 46%, and major cities’ ratios are much lower.
The persistence of gender inequality in the US contributes to the greater rates of poverty experienced by women. In the top 70 US cities, 17% of females had incomes below the poverty line on average. Even though overall poverty rates in Virginia Beach, VA, are far lower than the national average, the gender disparity in this city is highest at 1.76 (7.2% for females and 4.1% for males) (Singh & Lee, 2021). Also, gender inequality is present in Germany, where women may encounter obstacles in their pursuit of equal employment possibilities, which could negatively affect their financial security (Daniele, 2021). One issue with gender equality policies that persists in Germany is the fact that a much higher percentage of women than men take time off from work or work part-time, especially in low-paying jobs. Working mothers and married women are most affected by this.
In conclusion, US and German poverty as a diversity issue reveals shared educational, cultural, and language issues. Both countries have poverty due to gender disparity, housing affordability, and economic inequalities. Even though each country has a varied social welfare system and history, addressing these issues requires comprehensive approaches that account for its socioeconomic and cultural differences. Expanding education, reducing economic inequality, and supporting fair employment practices are crucial to financial independence and ending poverty in the US and Germany.
References
Danaj, S., & Wagner, I. (2021). Beware of the “poverty migrant”: media discourses on EU labor migration and the welfare state in Germany and the UK. Zeitschrift für Sozialreform, 67(1), 1-27. https://doi.org/10.1515/zsr-2021-0001
Daniele, V. (2021). Socioeconomic inequality and regional disparities in educational achievement: The role of relative poverty. Intelligence, 84, 101515.
Singh, G. K., & Lee, H. (2021). Marked disparities in life expectancy by education, poverty level, occupation, and housing tenure in the United States, 1997-2014. International Journal of Maternal and Child Health and AIDS, 10(1), 7. https://doi.org/10.21106%2Fijma.402
Wang, Q., Kwan, M. P., Fan, J., & Lin, J. (2021). Racial disparities in energy poverty in the United States. Renewable and Sustainable Energy Reviews, 137, 110620. https://doi.org/10.1016/j.rser.2020.110620
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