Sunday, February 26, 2012

Occupy The Middle Kingdom?

Income inequality isn't only a problem in America. I do believe that China's Gini coefficient (a measure of inequality) recently overtook the US. This will be tolerable to the legions of workers while China experiences the 10% growth that it currently enjoys. With a significant slowdown, it won't be tolerable.

Westerners tend to ascribe virtues of competence and wisdom to the Chinese government. If these leaders were wise, they would be starting to implement political reforms now. That way, pressure release valves are already in place when the system gets dealt a shock. Have they not been watching the news at all over the last year?

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