How did Spain get so rich... and Greece Flip Germany! Answer should not surprise you! (Patreon)

TLDR

Homeownership and Hodling hard Assets Drives WEALTH

The Details

As a small boy early 70s I spent quite some time in Athens... it was a very very poor country compared to Germany. But I liked it.

FFWD to 1981... they joined the EU.

Germany was still the superpower of Europe.

But this chart took me by surprise for a number of reasons.

1) holy crap median income of Greece is now the same as Germany. That was not on my bingo card in the early 1970s!

2) Spain blew up.... why?

Southern Europe has stronger traditions of intergenerational transfers—think family homes or small businesses passed down—which boosts the median without relying on high salaries. Germany emphasizes self-made savings mostly FIAT which is the kiss of death and pensions, but fewer own big-ticket assets like real estate, stocks, etc early on!

Homeownership Rates: This is the big one. Spaniards overwhelmingly own their homes (75% rate), often paid off early or inherited, turning property into a wealth anchor for the median household. Germany's rate is just 47%—one of Europe's lowest—thanks to a robust renter's culture (strong tenant protections, no tax breaks for buying), so even middle-income families rent indefinitely, building less net worth. Add in the fact that the Brits buy up tons of Spanish Real Estate helps the values also.