Germany The Self-Employed
Sources: The Library of Congress Country Studies; CIA World Factbook
During the centuries when Germany was a collection of medium-and small-sized states, wealth and power were concentrated in the hands of the nobility, landed gentry, and wealthy merchants in the cities. With the collapse of the German Empire in 1918, the nobility and landed gentry suffered a major setback, but they still retained much power and influence. During the interwar years, however, much political power devolved to representatives of other classes. A vivid illustration of the transfer of power was former army corporal Adolf Hitler's assumption of the German presidency following the death of General Paul von Hindenburg in 1934.
The old propertied and monied elites suffered an additional loss of power after World War II. In the new worker-dominated GDR, they saw their property confiscated and their power evaporate. West German society was transformed by the rapidly expanding social market economy and the migration of millions of displaced persons from the east, many of whom were well educated and capable. Some of the old elite and their offspring retained positions of influence (most notably in the military and the diplomatic corps), but to an extent greater than ever before, the elite class became open to society as a whole.
According to Geissler, Germany's elite numbers just a few thousand, less than 1 percent of the population, but its influence far outweighs its numbers. The elite consists of persons occupying key positions in such social sectors as business, politics, labor unions, the civil service, the media, and the churches. Membership in the elite is based on performance and is rarely inherited. For this reason, Germany's elite is pluralist in nature because members of lower social strata can enter it by rising to the top of a social sector. The openness of elite positions varies. Sons of workers routinely come to hold high positions in labor unions or in the SPD, but rarely in banking or the diplomatic corps. A vital criterion for advancement is a university degree, most notably a law degree, because about one-third of Germany's elite consists of lawyers.
Entry into East Germany's elite was determined almost exclusively by ideological considerations. Small and entrenched, the East German elite has been characterized as monopolistic, in contrast to that of the West German elite, where numerous groups shared or competed for power. Most of the GDR elite has lost power since the fall of the Berlin Wall. As a result, a new elite similar to the pluralistic elite of the old Länder is forming in the new Länder .
The self-employed provide a service on their own or are the owners of firms that provide a service or a product. In West Germany in 1989, the self-employed constituted 8.8 percent of the workforce, compared with 16.0 percent in 1950; their decline was even steeper in East Germany, from 20.4 to 2.2 percent over the same period. The self-employed are a heterogeneous group, encompassing shipping magnates and seamstresses and artists and gas station owners. As a result, the earnings of the group's members vary considerably--some members are wealthy, most rank in the upper middle or middle class in terms of income and social prestige, and some (about 7 percent of this group) are poor. Excluding farmers, annual household income of the self-employed in the old Länder in 1991 amounted to about DM150,000, almost triple the average household income.
As property owners and food producers, farmers are a small but significant part of the self-employed. In both Germanys, the number of farmers fell dramatically in the postwar era: in the west, from 5 million (or 10 percent of the population) in 1950 to 864,000 (or 1.4 percent) in 1989; in the east, from 740,000 in 1951 to only 3,000 in the early 1990s.
A typical agricultural enterprise in the old Länder is a small- or medium-sized farm worked by the owner, assisted by one or two family members. Some farmers are wealthy, while others only earn a bare subsistence. Farmers' average household income is lower than that of most other self-employed but is about 25 percent higher than the national average.
Data as of August 1995
NOTE: The information regarding Germany on this page is re-published from The Library of Congress Country Studies and the CIA World Factbook. No claims are made regarding the accuracy of Germany The Self-Employed information contained here. All suggestions for corrections of any errors about Germany The Self-Employed should be addressed to the Library of Congress and the CIA.