Wealth and poverty in Munich: A city between worlds

Wealth and poverty in Munich: A city between worlds

In Munich, two realities of life collide that couldn't be more different. While the city boasts purchasing power that is a whopping 35 percent above the German average, the social divide in the Bavarian capital is deep. Despite the title as the richest city in Germany, how BR According to reports, one in six people in the city is affected by poverty. Those affected often only have a pension or an income that is not even enough to survive.

A very specific example of this is 83-year-old Charlotte, who, after 24 years of running her restaurant, is dependent on food donations due to health problems. With a pension of 480 euros and additional basic security, she is confronted with the reality of poverty. According to the 2022 poverty report, older people, families with children, single parents and people with disabilities or chronic illnesses are particularly affected. The cost of living in the city is so high that many Munich residents have to struggle to make ends meet ( City of Munich ).

Numbers that make you sit up and take notice

Declaring war on poverty is urgently needed because the Munich Poverty Report from 2022 shows that more than 17 percent of the population is affected by relative poverty, which corresponds to approximately 269,000 people. However, only around 129,000 of them receive state support. It is a vicious circle that is anchored in the city with the clearly visible social imbalance.

A striking contrast can be seen in the life of Steffi, a 26-year-old heiress who, with net household assets of around 1.2 million euros, is one of the richest five percent of Germans. Steffi owns several properties and volunteers at a gardening center. The impression is that the gap between rich and poor in Munich is only growing, while economic success and a solid labor market prevail. This imbalance does not make it easier for many people to make a living and find accommodation that meets their financial means ( City of Munich ).

The definition of poverty

The European definition of poverty is clear: Anyone who earns less than 60 percent of the median income or is affected by material and social deprivation is considered to be at risk of poverty. This measurement is based on various factors that take into account not only income but also general quality of life. The at-risk-of-poverty limit for single people, for example, is 1,250 euros per month ( Destatis ).

While some of Munich's population are struggling with ever-increasing costs of living, others are enjoying increasing wealth and property. This divergence is not just a local issue, but also reflects challenges for society as a whole, which should provide impetus for discussions about social justice and sustainable urban development.