Imagine you are from an non EU country, have ten years of working experience in a relevant field, speak German at B2/C1 level. You apply for a residency permit with work permission. Sounds reasonable?
Wrong! Your school education, higher education and trade certification aren't recognised. You can apply for a trade certification course and residency permit, but only when you can proof to have about 10,000€ in the bank account for each year of the course. You are not allowed to engage in any form of employment on the side except for 10hours a week and <450€/month.
After you get your arbitrary certification you have to rush to find any job that is within the scope of your certificate. You will need to beg companies that they will sign the contract and risk waiting three months or more until your residency permit is approved. If it works out now for the first two years you are beholden to that company as your permit is tied to that job. If you want to change jobs you need to have a new company ligned up and initiate for a change approval, with the new company again willing to wait multiple months for the procedure.
If you don't abide by that process, get laid off, etc. your residency is invalid and you could be deported easily.
These were the experiences people close to me made under the supposed progressive government before the current one. German administration absolutely hates foreigners and the processes are made to make them sufder as much as possible and keep showing them that they should feel like servants kissing the boots of their masters.
It does not make sense economically, socially or in any other capacity. It is pure systematic racism, using the illogical and cold blood bureaucracy as a front.
Note that Germany hasn't reinstated the wealth taxation since more than 30 years and the inheritance tax is designed in a way to protect rich inheritors, so people who inherit hundreds of millions or billions usually pay no or a rather small percentage of inheritance tax, while people who inherit a few millions pay upwards of 30% on it.
Because of the lacking wealth taxation, there is no proper knowledge of how rich the rich in Germany actually are. The 1970s marked the end of the "Wirtschaftswunder" the time of rapid economic growth. Nonetheless since 1980 the real economic output has increased by 230%.
It isn't a matter of affordability for now that the social security is being attacked. It is a matter of political prioritization to enrich the rich and fight the middle and lower income people. In the longer run we will also see a huge demographic issue as there simply won't be enough people to keep working in the industries, but more importantly for social security in the healthcare and eldercare.
All of this was and is predictable. It has been matter of "discussion" since more than 30 years. Every government since then chose to remain inactive or work to make things worse. Doesn't matter if led by the CDU/CSU or SPD and doesn't matter if the coalition partners were Green or FDP (ultra-neoliberals). They all worked together to bring us here and now they get to reap the reward of neoliberalism in the form of rising fascism.