IMF: China being one of the most unequal countries in the world

[Lux de Veritas]

China Is One of the Most Unequal Countries in the World, IMF Paper Says - Real Time Economics - WSJ

A widening gap between China’s rich and poor makes it “one of the most unequal countries in the world,” according to a new working paper published by the International Monetary Fund.

Authors Serhan Cevik and Carolina Correa-Caro write that the rich are gleaning most of the fruits of the transition from a system of centrally-planned socialism to a market-oriented economy.

Although per-capita income has grown and the number of people living on less than a $1.25 a day has plummeted, income inequality has skyrocketed, the economists said. The top quintile of earners now pull in nearly half of total income while the poorest quintile of earners account for under 5%.

“China’s widening income inequality is largely a reflection of faster income growth among the rich, rather than stagnant living standards among the poor,” the two economists said.

With an estimated 2.4 million millionaire households, China now has more than any country but the U.S.

China’s credit-fueled investment and export-led development model are likely the primary drivers of the sharp increase in income inequality over the last three decades, they said.

Beijing’s economic strategy has aimed at higher growth rates. Although that effort may have lifted many Chinese out of poverty, the two economists said there’s mounting evidence that the widening income gap could weigh on future growth. That, they said, could come “with significant social consequences, especially in a country like China aiming to move beyond the ‘middle income’ status.”

To relieve those potential pressures, the two economists recommend ramping up taxes to pay for a redistribution of income: raising taxes on higher earners, broadening the personal tax and imposing a value-added tax on services. At the same time, Beijing could lower labor taxes that hit low- and middle-income earners, they said.

 

[SAMEET]

capitalism this what it offers ! anyway industries rely on cheap labours so what we can expect ! chinese labourer will not get which he should btw its everywhere in developing countries!

 

[OrionHunter]

When all the farmland is forcibly taken away from poor farmers and villagers at the stroke of a pen to build mega cities for the rich and powerful, what else can one expect?

 

[My-Analogous]

China Is One of the Most Unequal Countries in the World, IMF Paper Says - Real Time Economics - WSJ

A widening gap between China’s rich and poor makes it “one of the most unequal countries in the world,” according to a new working paper published by the International Monetary Fund.

Authors Serhan Cevik and Carolina Correa-Caro write that the rich are gleaning most of the fruits of the transition from a system of centrally-planned socialism to a market-oriented economy.

Although per-capita income has grown and the number of people living on less than a $1.25 a day has plummeted, income inequality has skyrocketed, the economists said. The top quintile of earners now pull in nearly half of total income while the poorest quintile of earners account for under 5%.

“China’s widening income inequality is largely a reflection of faster income growth among the rich, rather than stagnant living standards among the poor,” the two economists said.

With an estimated 2.4 million millionaire households, China now has more than any country but the U.S.

China’s credit-fueled investment and export-led development model are likely the primary drivers of the sharp increase in income inequality over the last three decades, they said.

Beijing’s economic strategy has aimed at higher growth rates. Although that effort may have lifted many Chinese out of poverty, the two economists said there’s mounting evidence that the widening income gap could weigh on future growth. That, they said, could come “with significant social consequences, especially in a country like China aiming to move beyond the ‘middle income’ status.”

To relieve those potential pressures, the two economists recommend ramping up taxes to pay for a redistribution of income: raising taxes on higher earners, broadening the personal tax and imposing a value-added tax on services. At the same time, Beijing could lower labor taxes that hit low- and middle-income earners, they said.

Thank you IMF and always remember AIIB bank for next 100 years

 

[Edison Chen]

When all the farmland is forcibly taken away from poor farmers and villagers at the stroke of a pen to build mega cities for the rich and powerful, what else can one expect?

China's rural residence land can't be traded, it's against the law.

China Is One of the Most Unequal Countries in the World, IMF Paper Says - Real Time Economics - WSJ

A widening gap between China’s rich and poor makes it “one of the most unequal countries in the world,” according to a new working paper published by the International Monetary Fund.

Authors Serhan Cevik and Carolina Correa-Caro write that the rich are gleaning most of the fruits of the transition from a system of centrally-planned socialism to a market-oriented economy.

Although per-capita income has grown and the number of people living on less than a $1.25 a day has plummeted, income inequality has skyrocketed, the economists said. The top quintile of earners now pull in nearly half of total income while the poorest quintile of earners account for under 5%.

“China’s widening income inequality is largely a reflection of faster income growth among the rich, rather than stagnant living standards among the poor,” the two economists said.

With an estimated 2.4 million millionaire households, China now has more than any country but the U.S.

China’s credit-fueled investment and export-led development model are likely the primary drivers of the sharp increase in income inequality over the last three decades, they said.

Beijing’s economic strategy has aimed at higher growth rates. Although that effort may have lifted many Chinese out of poverty, the two economists said there’s mounting evidence that the widening income gap could weigh on future growth. That, they said, could come “with significant social consequences, especially in a country like China aiming to move beyond the ‘middle income’ status.”

To relieve those potential pressures, the two economists recommend ramping up taxes to pay for a redistribution of income: raising taxes on higher earners, broadening the personal tax and imposing a value-added tax on services. At the same time, Beijing could lower labor taxes that hit low- and middle-income earners, they said.

Chinese should reform the individual tax to comprehensive levy system, to calculate the taxable income based on total gross income, rather than calculate the taxable income from each individual source of income. China has 11 taxable income, each of them have its own tax rate, which results to the consequence that some people with extremely high income from any single source, like stock dividend, can escape large amount of tax due. While the same rule apply to poor guys too, the percentage of tax collected from their total income is much larger than those rich guys who just need to pay very small amount of tax. If we use comprehensive tax system, the gap will be lower.

 

[aliaselin]

When all the farmland is forcibly taken away from poor farmers and villagers at the stroke of a pen to build mega cities for the rich and powerful, what else can one expect?

Indians do not understand how happy the farmers will be if the government take over their land. There will be money compensation which a common Indian can not earn for 10 generations.

 

[Nan Yang]

When all the farmland is forcibly taken away from poor farmers and villagers at the stroke of a pen to build mega cities for the rich and powerful, what else can one expect?

Building mega cities means building upwards and moving more people off the land actually reduce the need for land.

 

[ChineseTiger1986]

IMF, nuff said.

 

[Lux de Veritas]

China's rural residence land can't be traded, it's against the law.



Chinese should reform the individual tax to comprehensive levy system, to calculate the taxable income based on total gross income, rather than calculate the taxable income from each individual source of income. China has 11 taxable income, each of them have its own tax rate, which results to the consequence that some people with extremely high income from any single source, like stock dividend, can escape large amount of tax due. While the same rule apply to poor guys too, the percentage of tax collected from their total income is much larger than those rich guys who just need to pay very small amount of tax. If we use comprehensive tax system, the gap will be lower.

I am a socialist, similar to many of the CPC founding fathers. When Zhao Ziyang designed the current system, his intention is to use capitalism bridge the gap between traditional Chinese feudal society and socialism.

共产主义初级阶段是资本主义

He got Deng Xiaoping as a half hearted backer.

China under Jiang Zemin has developed into crony capitalism, though not without positive aspect. If Zhao Ziyang succeeded Deng instead of Jiang Zemin, China would be vastly different.

Chairman Xi need to come back to the design of Zhao as well as the dreams of CPC founding fathers. Capitalism is a bankrupt ideology. Only socialism can save China.

 

[onebyone]

IMF = USA

 

[Sommer]

China is one of the biggst country in the world. With so many population and such a big land, everything is different.
You can't expect the people at sea earn same money with the people in very west. If you campare the hole Eurapa with China, you will see things are not much different. There is rich country like German, and also poor like Albania.
It's only take china 30 years to get today. Things are changing fast in China.

If you realy want to understand china, I will sugust use the taji model(my own idea).
At the same time there are:
rich and poor,
good and bad,
modern and primitivism.
You always can see both sides of a thing.

（Both are classroom in village.）

 

[TheTruth]

You're representative of the reason why India will always be a second rate shit-hole. Jealousy and an inability to actually think.

@Lux de Veritas

<$2.00 a day and millionaires is comparing apples to oranges. This doesn't even include taxes and subsidies. No one in China is "living on" <$2.00 or you'd see India-like shit-hole living conditions.

 

[SarthakGanguly]

It's a growing country. Inequality in this stage is not abnormal.

What is worrying is the excess of it due to Central policies.

 

[FairAndUnbiased]

The geographic distribution of the wealth inequality is also important.

The question then becomes: is the wealth unevenly distributed over all classes regardless of province? Or is it that provinces are very different but within each province it is more equitable? It is important to think about because they point to very different problems.

 

[TheTruth]

The geographic distribution of the wealth inequality is also important.

The question then becomes: is the wealth unevenly distributed over all classes regardless of province? Or is it that provinces are very different but within each province it is more equitable?

There was a study done somewhere and I have to dig it up, the latter is the case. They studied India too, and found it has enormous intraregional inequality due to caste, race, gender and religious discrimination.