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Once the chronic unemployed reach retirement age, they switch from Hartz IV to a state pension.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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The Germans devised the Hartz IV system to limit benefits to a subsistence level of living.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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In effect, Hartz IV recipients put their lives in receivership to the omnipresent Jobs Center.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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Any savings over that amount must go to pay their expenses before they can receive Hartz IV money.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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If you have never been employed, such as a graduating student, you go immediately into the Hartz IV program.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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The New Deal was introduced after five years of solid economic growth, whereas Hartz IV arrives after three years of stagnation.
ECONOMIST: Ersatz Europeans
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Hartz IV recipients must go through a complicated bureaucratic procedure to replace essential household items such as a refrigerator or television set.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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This month the constitutional court ruled that the government had erred in setting benefits for the main welfare programme, called Hartz IV.
ECONOMIST: Germany and the euro
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If Hartz IV succeeds, Germany will have taken a big step towards helping its army of long-term unemployed off the dole and into work.
ECONOMIST: A new and controversial law takes effect this weekend
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The Hartz IV reform tackles Germany's chronic unemployment problem, cutting the link between the benefits paid to the long-term unemployed and their earnings in their last job.
ECONOMIST: Ersatz Europeans
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Of course, the Hartz IV reforms are not universally popular.
FORBES: Why Obama Cannot Match Germany's Jobs Miracle
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The Monday marches, which are supposed to continue until the Hartz IV law is repealed, gathered strength in the middle of the month but seemed to lose momentum this week.
ECONOMIST: Ersatz Europeans