The Poor in Developed Countries - Western Europe: Poverty In The United Kingdom And Germany

http://www.libraryindex.com/pages/2682/Poor-in-Developed-Countries-WESTERN-EUROPE-POVERTY-IN-UNITED-KINGDOM-GERMANY.html

Germany and the United Kingdom are the two largest economies in the European Union. The U.K. also has the EU's highest levels of poverty and income inequality as well. In Germany, child poverty is rising and unemployment levels are soaring. Countries confront the problem of poverty with three different social welfare approaches:

The social democratic:

This exists in mostly in the Scandinavian countries of Sweden, Denmark and Norway. This welfare program is paid for by taxes. This provides the highest level of services.

The liberal:

This is what the U.K. is using, and while it provides lower levels of service, it also lowers taxes. Private sectors are encouraged to help the needy, and those who are unemployed are urged to take whatever is available. This approach is very similar to what the U.S. welfare system is like.

The corporatist:

Countries such as France and Germany use this model, as well as most other continental European countries. Benefits would come through the employers through individual contributions.

Note: Scandinavian countries have the lowest poverty rates when compared to the rest of the European Union.

Although efforts have been made to reduce the number of impoverished people in Britain, the results were based off of the increase of all levels of society's incomes; therefore the challenge is to increase the incomes of the poor faster than that of the wealthy. As of 2005, about one in five people in Britain are poor. 33% of that number are families with children.

Germany, though they seemed to recover remarkably well after WWII, fell into an economic sinkhole by the 2000s. As of December of 2005, the unemployment rate had dropped from 12.6% to 11.2%, it shot back up to 12.2% by February of 2006. Germany had a similar problem to the British when it came to measuring the poverty line, however. They looked at income increases across the board, instead of specifically where the rise was needed most. The government is now looking at reforming labor and social welfare laws. But these reforms do not seem to be a valid way to reduce poverty. In specific:

-The work week would be increased with no pay raise (it is now at 35 hours per week)

- Labor unions power would be decreased

- Unemployment benefits would be very strictly limited