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1/6
Good article on the real meaning of Chinese GDP growth figures. The article correctly points out that income inequality in China is extremely high, comparable to levels in the most unequal developing economies, and of course higher than in the... https://www.bloomberg.com/markets/fixed-income
Good article on the real meaning of Chinese GDP growth figures. The article correctly points out that income inequality in China is extremely high, comparable to levels in the most unequal developing economies, and of course higher than in the... https://www.bloomberg.com/markets/fixed-income
2/6
developed economies. It also points out that Beijing, like the rest of the world, recognizes this to be a serious problem and for years has pledged to redress it – so far unsuccessfully, also like the rest of the world.
developed economies. It also points out that Beijing, like the rest of the world, recognizes this to be a serious problem and for years has pledged to redress it – so far unsuccessfully, also like the rest of the world.
3/6
But I would add that in fact China has two types of income inequality, which is why its consumption imbalance is so much more difficult to resolve. Not only do ordinary Chinese have too low a share of total household income but, what is worse, household income is...
But I would add that in fact China has two types of income inequality, which is why its consumption imbalance is so much more difficult to resolve. Not only do ordinary Chinese have too low a share of total household income but, what is worse, household income is...
4/6
itself too low a share of GDP. China, in other words, must do two things if it is to rebalance.
Like the rest of the world it must redistribute income downwards, from very rich to poor and ordinary Chinese. But unlike the rest of the world, it must even more urgently...
itself too low a share of GDP. China, in other words, must do two things if it is to rebalance.
Like the rest of the world it must redistribute income downwards, from very rich to poor and ordinary Chinese. But unlike the rest of the world, it must even more urgently...
5/6
redistribute income from the state sector to the household sector. Each of these forms of redistribution is likely to be politically very difficult and will require substantial institutional and political reform, which is why rebalancing demand within the economy has...
redistribute income from the state sector to the household sector. Each of these forms of redistribution is likely to be politically very difficult and will require substantial institutional and political reform, which is why rebalancing demand within the economy has...
6/6
been – and will continue to be – so hard to pull off.
been – and will continue to be – so hard to pull off.
