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"Strengthening the health care, retirement and unemployment insurance systems, so that workers feel more secure, might help lower the savings rate somewhat." T
by timtas 11y ago
"Strengthening the health care, retirement and unemployment insurance systems, so that workers feel more secure, might help lower the savings rate somewhat."
Translation:
We need to get 'em all on the dole but quick, because as innovation increases output per worker how can they possibly make the transition to higher paying jobs, what with all that dang savings to worry about. Wait...what?
- crdoconnor 11y agoChina's high household savings rate is largely due to the smashing of the iron rice bowl and the increase in income uncertainty. It's a vastly inefficient form of self-insurance driven by the lack of welfare. Worse, this enormous savings surplus is largely being recycled into enormous infrastructure construction projects which will never show any ROI and apartments which nobody will ever live in. All that construction does provide a lot of opportunity for graft, though.
- timtas 11y agoOh, there's no doubt that China's central planners are malivesting on an enormous scale. Good thing for us they still save enough to fund America's borrowing.
- LoSboccacc 11y agohonestly better to have apartment available to sustain the growth that a speculative market that makes having a roof a privilege like in the western countries, where most houses are actually owned by banks.