Inserts:

00:03 Report / Lars Halter
00:48 Ünal Özcan / Cutman CEO
01:40 Marcel Fratzscher / German Institute for Economic Research
01:55 Oliver Stettes / Institute of the German Economy

+++SYN+++

Washing, cutting, trimming... Oksana has been working at the Cutman hair salon in Berlin for three years. Like many in her line of work, she's passionate about styling her customers.. and having a friendly chat while doing so. At the same time, many hair dressers are also worried.. as they're m aking minimum wage in times of drastically rising prices.

In Germany, 6 million people work for 12 Euros and 82 Cent per hour... most of them in retail, gastro and service jobs.

Their exact earnings are set by an independent commission. They're required to look towards the median wage and set the minimum at around 60 percent.

But for employers, the question of higher wages is not such an easy equation.

+++SOT Ünal Özcan, Cutman CEO+++ ((A144C002_250429_H005 03:22min))
"Here at Cutman that would mean that we might have to cut down on personnel.. that we have higher costs and have to raise prices.. Definitely.. 100 percent we'll have to pass this on to customers, because the money has to come from somewhere."

(("Für uns bei Cutman bedeutet das, dass wir eventuell Personal einsparen müssen, die Preise erhöhen müssen und mehr Kosten haben. Eindeutig. hundertprozentig werden die Kosten weitergegeben, weil irgendwoher muss das Geld ja kommen."))

+++GRAFIK+++
Ever since the minimum wage was standardized back in 2015, it rose steadily, starting at 8 Euros and 50 cents. If the minimum wage were to reach 15 Euros, as is currently discussed, it would be a 76 percent rise over ten years.. far outpacing standard wages, which, on average, have only gone up by 24 percent between 2015 and today.

The pros and cons of a higher minimum wage can be argued in any hair salon... or bakery, or restaurant for that matter. But they're also debated among economists. And they, too, disagree on what's best for the country and its stagnating economy.

+++SOT Marcel Fratzscher, German Institute for Economic Research DIW +++
"There are many strong arguments for a higher minimum wage... a higher minimum wage guarantees many people a higher income, but it also helps the economy as a whole.. as it makes the economy more dynamic, it increases demand, and productivity as well.

(("Es gibt viele gute Argumente für einen höheren Mindestlohn ((...)) ein höherer Mindestlohn hilft nicht nur den Betroffenen ein besseres Einkommen zu haben, sondern es ist auch gesamtwirtschaftlich sinnvoll, weil es mehr wirtschaftliche Dynamik, mehr Nachfrage und auch mehr Produktivität schafft."))

+++Oliver Stettes, Institute of the German Economy / Institut der Deutschen Wirtschaft+++ ((09:36))
"A higher minimum wage certainly strengthens the purchasing power of those who earn it... but we have to be clear about the fact that it also increases prices for goods and services produced or provided by those people who are actually earning that minimum wage."

(("Der Mindestlohn erhöht zunächst einmal für die Betroffenen die Kaufkraft, das ist völlig klar ((...)) man muss sich aber darüber im Klaren sein, dass er dann automatisch zu einer Verteuerung von Produkten und Dienstleistungen führt, die von Beschäftigten erzeugt oder bereitgestellt werden, die den Mindestlohn beziehen. Und das würde zu einem Kaufkraftverlust an anderer Stelle führen."))

Like the haircuts at Cutman, for example. They would go up in price.. and the salon fears that customers might cut back on visits.
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