One thought I hate reading this is: do you need upward mobility?

It's a serious question because in an ideal (IMHO) society, people can have full and satisfying lives with security and family without becoming a CEO. In the US, for example, there's an obsession with "getting ahead" but, by definition, only so many people can get ahead. And why do they want to? Because, at least in part, a basic job in insufficient to make ends meet in most cases now. This is a form of coercion.

This is orthogonal to the issue of German social inclusion and forms of xenophobia (eg in the housing applications you mention).

Personally I'd rather in a society where everyone's needs are met and it's not a race against a rising tide where only 20% of the population are above it.