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Interesting, but relevant? What is the link to this Bloomberg article? There are some question that these two sentences raise. Is South Korea really still classified as a developing country?|
It is commonly accepted that China is the world's second largest economy (to USA) based on GDP, so why is Bloomberg saying it is now number 1? Are we comparing GDP, GDP per capita, or purchasing power parity?
In my understanding, China was scheduled to become number 1 in PPP during 2014. Certainly China does not have the world's largest GDP, and income per capita is also not the highest in the world. PPP represents the most useful cross-border measure of income because it adjusts the family income for price differences.
But a critical problem for China is not income, but income distribution. China has one of the world's most uneven distributions of wealth. At the top, there is a small percentage of super wealthy (mostly senior government officials and their families, together with business people leveraging their connections to corrupt officials). The rest of society struggles.
One of the roles of government is the creation of a framework through laws and regulations in which enterprise can flourish. This is sadly missing in China, where the Communist Party has only succeeded in creating a structure where corruption can and does flourish. Another role of especially socialist governments, is the redistribution of wealth from the rich to the poor through progressive taxation and a system of welfare transfer payments. Such does not exist in China, where the main purpose of the Party is the entrenchment of power and the expansion of personal wealth.
Lamentable, we are not seeing young comrades joining the Party to give to society or to work to create a better country. Today they join for what they can get out of the "system", and to continue a culture of rape and pillage. It is just 1% of the country that are members of the Party, and all of us who are not are allowing ourselves to be trampled by the avaricious Party members who take our taxes, profits and land for themselves. It is time for the masses to arise and resist the oppressors.