Tuesday, November 29, 2016

That 5 Euros per month hike in German Hartz IV benefits in 2017 is already eaten up

German officialdom does not like to be reminded that there is hunger in one of the premier economies of the world.

So, the blogster decided to do a tiny study when it* read that the announcement that basic means tested social benefits (HARTZ IV) will go up by five Euros to 409 Euros per month for adults.

Serendipity - or German efficiency - timed the press release for the month of August, giving a notoriously disorganized blogster ample time for a non-representative study of prices.

The blogster broke the study down into food and non-food basic living costs.

Non-food basic living costs:
1) Another increase in power prices is coming. Assuming that only the levy components (renewables subsidy, grid maintenance levy) are going up, the blogster calculated that more than 1 Euro per month will go into the electricity bill.
2) Car insurance up by about 25 Euros per year, 2 a month. The funniest thing about German car insurance is that it never seems to go down. The boring and cautious blogster gets all the "good driver" bonus points that reduce part of insurance but a general premium hike or a reclassification of the make and model of the car just never makes it cheaper. If you don't have a car, regular annual increases in public transportation costs have the same effect.
3) A general liability insurance may be something basic benefits recipients tend to forego. The blogster doesn't know if they do. Five Euros more for next year on the cheap on the blogster has.

Food:
Prices of some staple foods have risen sharply over the past couple of months. Butter went up by 25% across stores and brands, milk by about 15%. Most basic cheeses did, too, by about 15%, although for the stores the blogster checked, benefits recipients can switch from Swiss to Gouda to compensate.

The hike in these food prices alone exceeds the 5 Euros a month.

So, Merry Christmas.

* Gender neutral is it at the K-Landnews.

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