Monday, June 14, 2010

Chinese prosperity, in a word

Wall Street Journal:

The share of national income going to Chinese households has been declining for a decade, meaning the benefits of China's growth have gone mainly to corporations and the government.



Anonymous said...

isn't that the story of the US economy for the last 4 decades? productivity has skyrocketed, but all wage gains have been neutered by inflation. (actually it's worse than that: instead of wage gains, people have been given "credit," so they are paying off debts, much of which they accrued in order to survive.)

o invisible hand that fixes this stuff for the good of all, where art thou?

JRB said...

I think the story we want to stick to, because it translates into every language, is that the distribution of wealth is always the prerogative of whomever owns it.

You get different outcomes depending on the historical circumstances, and the requirements of the ownership caste.

But you're right that the past 40 years or so have played out in the way you describe here at home.