Florida Rolf

German media are talking about the man called Florida Rolf on the occasion of the 10th anniversary of major social reforms.

The then government of social democrats and the greens pushed through a huge overhaul of the German social system and labor market.

One of the major tenets of the package was limiting unemployment benefits to 12 months for those under 55 and 18 months for those over. At the same time, the amount of money paid was drastically reduced.

Once these benefits run out, you may become eligible for means-tested SSI type benefits along with the attached social stigma (lazy, uneducated, not pulling your weight in society). German style means-testing is a serious business and until recently included the odd 10 euro cash gift to the grand kids by opi or omi.

Contract hires were made easy, laying off workers was simplified, and some fairly timid reforms to promote self-employment were instituted. Payroll taxes for employers were reduced, and 401 k type individual pension schemes came into being.

Around the time of these reforms, a German living in Florida became famous as a "tropical moocher", on perpetual vacation in the sun financed by the German government, as the poster boy of the campaigners against Germany's social safety net. The reform abolished payment of SSI benefits to Germans who live outside the country.

While most Germans at the time agreed that some measure of reform was desirable, the results are mixed and are said to have contributed to the growth of a low wage sector which, opponents claim, furthers marginalization. The jobs pay a maximum of 450 euros a month and are exempt from payroll tax, making them an instrument of choice in a number of low wage sectors.

The benefits, known as Hartz IV after the VW manager (and subsequent convicted felon) who proposed them, are being re-calculated every five years and are currently around 400 euros a month. Insecurity in the lower middle class is said to have increased, and German populist tabloid Bild Zeitung continues to take pot shots at people on their version of SSI.

Inequality has increased here, too, and conservative chancellor Merkel was just reminded that the "haves" are fragile when it comes to high incomes. She mentioned in public that it might be a good idea to look into management compensation and found herself heavily criticized by the pillars of conservatism.

To us, this looks a lot like a modern day version of Nietzsche's "what does not kill me makes me stronger".