Author: 468259058

Who has stolen China's middle class? [Copy link] 中文

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Post time 2011-5-9 17:02:25 |Display all floors

USA with only 10 million registered private business

..........is an unusual exception, 3% of it's population but has a US$45,000 per capita income!

So, China can tamper with other models if it wants based on what it sees around the world!
On the other hand, Singapore's high income is due to HIGH SALARIED WORKERS due to huge investment by the UK, USA and France especially on high end industries like Pharmaceutical, Engineering, Jet Engines, Casino etc.

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Post time 2011-5-10 22:11:19 |Display all floors

Middle class and poor

The lack of a middle class and the continuing existence of the poor is due to the taxation system. There should be no income tax on workers wages that are not high enough to allow them to buy a house. High income earners should be heavily taxed on a progressive scale, and wealth should be taxed. Luxury items should also be very heavily taxed.

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Post time 2011-5-11 11:18:53 |Display all floors

poor or middle

because of the CPI and housing and low wage and so on . we don't have enough money to pay the thing we need .so we become poor  classs.In the past. we were middle class or even rich .we need to find out the solutions that convert us to normal class.

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Post time 2011-5-11 12:01:13 |Display all floors

Reply #24 carolcheng's post

You are of "unsound mind", Ms. carol cheng!

The term "middle class", high income, middle income, lower income, entry level income, rich revenue merchants are all statistical - it's impossible to have the numbers changed for the income range and status. The term "middle class" normally refer to "self employed" business people while the "rich" are wealthy individuals with certain monopoly, huge land holdings or government held franchise.

The number of high income, middle income, lower income, entry level income shouldn't change in ratios in "normal natural situation". What we have is dependent on our state's total production, our capability to trade to gain net surplus material and share of production per citizen that determines the "material access" for each member of the state.

Normally in many rich, developed states, it's the predominance of the Middle class, high income worker, middle income workers that generate huge SERVICES industry that allow ACCESS to cash, credit by the lower income citizenry, worker to afford the available material production of our state.

Currently, China is exporting as much as 50% of it's industrial production. Why the productive capability of China is great, equal KG TO KG to the United States on the per capita basis - it's lack of middle class, high income worker, middle income workers (relative to the global income range) that's stopping the material access to that high productivity.

In China, the Shandong-Jiangsu-Beijing/Tianjin were dependent on "labour intensive" work force to man the foreign - mostly Japanese, Korean, US, German, French and British Commonwealth investments. Profits belongs to foreign firms, while income is only workers salaries and domestic overhead cost. (foreign firms earns up to 35% profit margins on their Chinese investments)

While traditionally, the Zhejiang-Fujien-Guangdong + Taiwan/HK were dependent on "domestic, diaspora oversea's Chinese" - so the profit margins are retain for the benefit of Chinese citizen or Diaspora!

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Post time 2011-5-12 09:30:04 |Display all floors
Originally posted by greendragon at 2011-5-11 12:01
that's stopping the material access to that high productivity.
.
According to some news report, More than half of Chinese with city hukou invest more of their income in a living shelter.

Most of farmers invest their income into a living shelter too.

In Chinese official statistics, Both Building a house for themselves by farmers and Buying an apartment for themselves by city people are investment in the calculation of GDP.

For example: an apartment was sold as RMB 1 million in 2010.
The same apartment was sold as RMB 2 million in 2011.  
If the rental in housing market hadn't changed, Chinese CPI won't change by the fluctuation of housing prices.

But even the housing rental is low, Chinese would have to buy their own apartments. Or they won't have the independent Hukou certificates (ID Card certificate), and then they won't enjoy many basic government service.

Housing rental has a much lower weight than food, than other cost in Chinese CPI statistics.
Many Chinese researchers doubted this CPI weight because it is different from the reality. At last, last year, Chinese government began to reform a little of the CPI weight.

++++++++++
Before the housing reform, Most of city people rented house from government. So the cost of living shelter is low. And it was right in the CPI statistics before the housing reform.

However, after the housing reform, City people have to buy house from housing market, But the CPI statistics didn't reform. So huge divergence was produced between CPI and the real inflation of China.

[ Last edited by 468259058 at 2011-5-12 09:32 AM ]
our life is full of sunshine

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Post time 2011-5-12 11:39:09 |Display all floors
capitalism............. behind most thefts

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Post time 2011-5-13 12:52:49 |Display all floors

Reply #26 468259058's post

You only pay MORTGAGE between 10, 15 and the worse 20 years time.

It's not a regular payment!
A home is an investment, represents an assets for the citizen!
The rental market represent the "value base of the home"!

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