Claudia Müller: Racism and Poverty: A Complex Interplay

In Germany, anyone who has less than 60 percent of the median income at their disposal is considered to be at risk of poverty. With a median annual gross income of 45,358 euros (2024), the poverty risk threshold is therefore around 27,000 euros. But the causes of poverty are more complex than pure income differences. One often overlooked factor is the influence of racism on the economic situation of minorities.

Current studies show alarming differences in the risk of poverty among different population groups. While the risk of poverty for people without a migration background is 14.8 percent, it is 33 percent for Muslim men, 27 percent for Asian men and 20 percent for black men. This discrepancy cannot be explained solely by differences in education or employment. Even with a high level of education and full-time employment, the risk of poverty for these groups remains significantly higher.

Education is considered an important factor for economic success and social mobility. But despite formal equality of opportunity, there are clear differences in practice. Children with a migrant background often have worse educational opportunities, either due to insufficient resources in certain schools or subtle discrimination in the education system. This disadvantage continues into later working life and increases the risk of long-term poverty.

Racism also manifests itself in access to the job market. Studies show that applicants with foreign-sounding names or dark skin have worse chances of being hired despite having the same qualifications. This discrimination means that many of those affected end up in precarious and poorly paid jobs, which further worsens their economic situation.

Poverty and racism reinforce each other through social segregation - the spatial separation of residential areas of social groups. People affected by poverty often concentrate in disadvantaged urban areas with poorer infrastructure, which makes access to education and work even more difficult. At the same time, spatial separation promotes prejudice and mistrust between different population groups.

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This dynamic also has political implications. Marginalized groups often have less political influence, which can lead to frustration and alienation. The resulting social polarization makes dialogue and finding solutions to these complex problems more difficult.

To break the vicious circle of racism and poverty, comprehensive measures are needed:

1. Investment in education : All children must have access to quality education, regardless of their background. This requires targeted support for disadvantaged schools and raising awareness among teaching staff about unconscious bias.
2. Labor market reforms : Discrimination in hiring and promotion must be actively combated. Anonymous application procedures and diversity quotas can bring progress here.
3. Strengthen political participation : The voices of all population groups must be heard in political decision-making processes. Participatory approaches at the local level can be a first step here.
4. Intercultural dialogue : Opportunities for encounters between different population groups should be encouraged in order to reduce prejudices and promote mutual understanding.
5. Data collection and research : In order to develop targeted measures, we need better data on the situation of minorities. Recording migration backgrounds in education statistics would be an important step here.

Combating poverty and racism requires a rethink at all levels of society. Only if we understand and address the complex relationships between these phenomena can we create a fairer and more inclusive society. This is not only a moral obligation, but also makes economic sense: a society that uses the potential of all its members is more innovative, productive and ultimately more successful.

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The economy also has a duty here. Companies that focus on diversity and inclusion demonstrably benefit from a broader perspective and higher employee satisfaction. Diversity management should therefore not be seen as a cost factor, but as an investment in future viability.

The path to a fairer society is long and challenging. But with the combined forces of politics, business and civil society, we can achieve this goal – for the benefit of all.