5 Common Prejudices About Poverty and Basic Income: Refuted by Paritätischer Gesamtverband

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In the social discussion about poverty and basic income, prejudices that do not correspond to reality keep popping up. The Paritätischer Gesamtverband has singled out and refuted the most common prejudices.

Myth 1: There is no poverty in Germany

The assertion that there is no poverty in Germany is wrong. This statement mixes the terms absolute and relative poverty. Absolute poverty means that people cannot meet their basic needs for material reasons. The World Bank defines extreme poverty as living on less than $2.15 a day. This is the bare minimum a human needs to survive.

In Germany, on the other hand, we speak of relative poverty. The focus here is on the relationship between a person’s material resources and social prosperity. It is about the question of whether a person can participate in social life materially, culturally and socially.

The more prosperous a society is on average, the higher the cost of living. For example, people living in poverty in Germany have difficulties affording a healthy and balanced diet, buying their child a bicycle or replacing a broken washing machine.

According to this definition, around 14.1 million people in Germany are currently considered poor. In order to get a comprehensive picture of the poverty situation in Germany, it is important to distinguish between absolute and relative poverty. Even in a wealthy country like Germany there are people who are confronted with material limitations and social challenges.

Misconception 2: Poor people spend their money wrong

This prejudice reflects an ignorance of the financial realities of people living in poverty. The statement assumes that a frugal lifestyle can get you through the month on very little money. However, this ignores how tense and stressful the financial situation of poor people actually is.

A clear example is the situation of a single parent who has to get by on less than 1489 euros – that is the poverty threshold for a one-person household with a small child in 2021. This person already lives in extremely frugal circumstances and can take care of many things that are important for other people are commonplace and enable social participation simply cannot be afforded.

It is important to recognize that people living in poverty cannot extricate themselves from this situation simply by living frugally. The financial burdens and limitations they face are often overwhelming.

They face the challenge of covering their basic needs while at the same time meeting the demands of everyday life. The prejudice that poor people can easily get by on little money ignores this reality and contributes to the stigmatization and devaluation of people in poverty.

Myth 3: Poor people need a job, not citizen benefits

The prejudice that poor people need work and no social security benefits is expressed in various forms, but it does not make it any truer.

While it is true that unemployment is a high risk of poverty, it does not necessarily follow that work is the best antidote to poverty. For the vast majority of the 14 million poor people in Germany, work is not a way out of poverty.

This is because they are either too young or too old, in education or engaged in care work outside of the labor market. There are also people who are already employed, which accounted for more than a quarter of all poor people in 2021.

It is important to recognize that poverty is not always due to a lack of employment. The structural and individual reasons for poverty are diverse and go beyond unemployment.

There are people who, despite their commitment to the labor market, do not earn enough to cover their basic needs. There are also situations in which people are unable to work due to personal circumstances such as illness, disability or family commitments.

Therefore, it is important that as a society we not only rely on employment as a solution to poverty, but also recognize the importance of adequate welfare and support systems. These can help to enable those who cannot work because of their individual circumstances to live in dignity.

Myth 4: Poor people have nothing to do

This prejudice shows a very narrow understanding of poverty that does not do justice to the reality of poor people. It only considers poverty in connection with integration into the labor market and neglects other aspects of life.

In fact, poor people are active in many ways. They do voluntary work, care for relatives and look after children. They attend schools, universities or complete an apprenticeship.

As already mentioned in the answer to prejudice 2, they are often also employed. So it is wrong to make a blanket statement that poor people have nothing to do. They can be as busy or as busy as people not affected by poverty.

It is important to recognize the diversity of poor people’s activities and commitments. Poverty does not mean being idle or having no responsibilities. Many poor people struggle hard to improve their living conditions and support their families. They face a variety of challenges and often have to fulfill several roles at the same time.

Myth 5: Education is the best remedy against poverty

This argument is often formulated by Union or FDP circles. Education is undoubtedly an effective tool against child poverty. It is important to strengthen the education system so that children from low-income families have the same opportunities for a good education as their affluent peers.

However, it becomes problematic when this statement is used to play off education and money against each other. The claim that poor children don’t need more money, just a better education, is misleading.

In fact, money is the quickest and most effective way to fight child poverty. A better education system supports poor children in their future development, but additional money helps the almost three million children in Germany who are currently living in material need. It allows them to participate in activities that are normal for their friends and reduces the long-term health and psychological consequences of growing up in poverty.

It is important to know that both money and education are important to fight poverty. Both aspects are inextricably linked. A strong education system opens up better future prospects for poor children, while additional money directly helps them meet their basic needs and have a dignified childhood.

Instead of playing education and money off against each other, we should recognize that together they are effective. A holistic approach that includes both the strengthening of the education system and the provision of financial resources for poor families is the key to sustainably combating child poverty and giving all children the same opportunities for a successful future.