Education,medical care and real estate, the three items are the main consumption of most Chinese family. Unfortunately, those items for most family are too much because those are not supply by goverment.Theoretically speaking, those items should be public goods, but now they are considerable like a private goods: you must pay for them by yourself. So most family have to save their income in the bank despite the interest rate is really low.
The second problems, China's economic overheat. From Keynesianism, aggregate demand increase will cause the economic increase. But in China, though the goverment encourage people consume more, but the people don't have any supply on education,medical care and real estate. They worry about future and China's finance market is bad. So the only way keep the property is save(though the interest rate is low and there are 20% tax on interest rate，the net income is minus).
The Chinese people don't have will to consume, the only way for Chinese goods is export. Export is take 31% of Chinese economic, it's such a great quotient! Those goods sell will just because of our workers' wage is only 4% of American&Japanese workers. In 2005, our nation income from export is 83.1billion, but only have net income is 14.6billion. Why? Because more than 80% export was made by multinational.
From above we could see the economic growth is just outside. The benifit mostly share by the ruling class and multinational. China don't have high-tech company, there only some low-tech company product the cheapset and the most simple goods by low-paid workers.
Underclass workers have to bear low-pay, the 12 hours' work one day and all the bad condition living. Some of them still got unemployed. Their is no labor union help them. Sadly, someone have to steal ,to rob and do some other illegal things. City residents have may negative stereotypes about underclass, thought they are not interest in works and only looking to live off the work of others, they are selling sex and drugs.
There will be the creation in China of a huge underclass that will find it more and more difficult, as the the rest China advances, to join in.
If the ruling class still exloit them, mistreat them, and blame them for they troubles that they are suffer, there will be a poor and divided China.
The second problems, China's economic overheat. From Keynesianism, aggregate demand increase will cause the economic increase. But in China, though the goverment encourage people consume more, but the people don't have any supply on education,medical care and real estate. They worry about future and China's finance market is bad. So the only way keep the property is save(though the interest rate is low and there are 20% tax on interest rate，the net income is minus).
The Chinese people don't have will to consume, the only way for Chinese goods is export. Export is take 31% of Chinese economic, it's such a great quotient! Those goods sell will just because of our workers' wage is only 4% of American&Japanese workers. In 2005, our nation income from export is 83.1billion, but only have net income is 14.6billion. Why? Because more than 80% export was made by multinational.
From above we could see the economic growth is just outside. The benifit mostly share by the ruling class and multinational. China don't have high-tech company, there only some low-tech company product the cheapset and the most simple goods by low-paid workers.
Underclass workers have to bear low-pay, the 12 hours' work one day and all the bad condition living. Some of them still got unemployed. Their is no labor union help them. Sadly, someone have to steal ,to rob and do some other illegal things. City residents have may negative stereotypes about underclass, thought they are not interest in works and only looking to live off the work of others, they are selling sex and drugs.
There will be the creation in China of a huge underclass that will find it more and more difficult, as the the rest China advances, to join in.
If the ruling class still exloit them, mistreat them, and blame them for they troubles that they are suffer, there will be a poor and divided China.
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