Friday, November 4, 2022

‘Seven sins’ emerge from flawed Western political systems: Global Times editorial

The Chinese view of the Western way. 

These can be regarded as the “seven sins” of the Western political systems in real life. They must reform and change their systems from being capital-centered to people-centered.

Capitalism favors capital including land, that is, ownership, as a single factor, and socialism favors labor (workers as people rather than as a factor). 

Global Times (Chinese state-sponsored media)

2 comments:

Peter Pan said...

Lot of sins going on in China's real estate developments.

How do you say 'ponzi scheme' in Mandarin?

Ahmed Fares said...

There is no question that China has a major problem with income inequality, which is not only high now, but has remained persistently high over time. Its Gini coefficient — a measure of income inequality where 0 equates to perfect equality and 1 to total inequality — was about 0.54-0.55 in 2019, according to the China Family Panel Studies survey. This was far higher than in most developed economies. The top 20% of income earners receive about 46% of income, virtually unchanged over the last decade or so, while the bottom 40% get slightly more than 13%. Until now, Chinese citizens have been willing to accept that the CCP would continue to enhance living standards and prosperity for future generations, but if citizens begin to doubt this, the government will have to watch out.

Income inequality is high in China, partly because of familiar problems of richer households getting most of the benefits of economic growth, but also because wages and salaries — and, therefore, consumption — account for a low proportion of GDP, and the state for a relatively high 40% of GDP. Compared with developed nations, Chinese households are much worse off because social welfare payments and transfers to households account for about 8-9% of GDP, compared with 15-20% in the US and the EU.


China’s broken promise of prosperity