China: An historically unique kleptocracy?

[AnimalMother]

Here's a very interesting interpretation of China's economy, and where its money comes from. Thoughts?

[Super Nova]

All because the inflation rate is dropping. Maybe they can stop it dropping. The Chinese establishment has a vested interest in getting the inflation rate up in China. Because if they don't all hell will break loose.

Unless the Chinese can get the inflation rate up expect a revolution.

A very interesting and logical article. I know china is corrupt however I didn't appreciate the method that those in positions of power benefited beyond taking (via taxes) from the poor and just distributing this to themselves.

This article describes the "looting" from a macro ecconmic view point. This means, those in power may have had a sinister personal motive for relaxing the elements of the communist dogma. Clever if they made such changes recognising the benefits to them. Since China has allowed some for a capitalism and immediately the super rich appeared I was under the impression it was business acumen and opportunity... there must be some pessants who fit this bill.

The logic that deflation or a low inflation will bring the government down is interesting.

The points on the later the countries develops the faster that do by stealing the inventions from those before is interesting. What happens to those countries in the end if they did not lead the inventions.

Japan has been stagnant for years.
Will this happen to China eventually?

[AiA in Atlanta]

Japan has been stagnant for years.
Will this happen to China eventually?

China is aging along with Japan but China will get old before it gets rich like Japan.

[AiA in Atlanta]

What I meant to say was that other countries are aging rapidly as well but China is doing so while it is relatively poor. Would think at some point there would have to be some kind of safety net and have heard they are moving towards a public health care system.

[freediver]

The aging population argument is complete BS. China is doing so well because of the one child policy. One result of this is a skewed population. The other is that they are suddenly a whole lot richer. Right from the start they called the single children the generation of 'little princes'. Only a few generations back they were starving. You only have to look at India to see what happens if you try to support your old people with even more young people.

[Mattus]

What I meant to say was that other countries are aging rapidly as well but China is doing so while it is relatively poor. Would think at some point there would have to be some kind of safety net and have heard they are moving towards a public health care system.

It's a good point. China's inflation adjusted GDP/capita PPP is $8,848 and the median age is 34. When Japan's GDP/capita was in that range their median age was just 28. However, since then Japan has started aging very rapidly, much more rapidly than China. Indeed the median age in Japan now is 45. That's 11 years older than China! Australians are just 38.

China is not aging as rapidly as Japan, Australia or the USA. But it is growing wealth at a faster rate than any of those. Take a look (although note the log x axis).

http://www.gapminder.org/world/#$majorM ... 13_t001965,," onclick="window.open(this.href);return false;,
Here's one with India for Freediver's interest.

http://www.gapminder.org/world/#$majorM ... 01_t001965,," onclick="window.open(this.href);return false;,

[AnimalMother]

Now that's an interesting tool ...

[freediver]

How could China's population not be aging the most rapidly?

[mantra]

Maybe they kill the elderly off - or use them for experiments. As most of them have sons, who aren't renowned for looking after their old parents - they might end up dying sooner than they should through neglect?

[Super Nova]

Maybe they kill the elderly off - or use them for experiments. As most of them have sons, who aren't renowned for looking after their old parents - they might end up dying sooner than they should through neglect?

They work them to death in fields or in Ipad factories that's if they don't kill themselves first.