[… ] It is not hardship that is politically dangerous, but a comfortable middle class […] On the institutions that underpin a secure middle class — most importantly a social safety net — China diverges sharply from its peers. Social spending sits near 10% of gross domestic product, roughly half the average for countries in the Organization for Economic Cooperation and Development. Xi often warns that welfare programs breed idleness, a surprising stance for an avowed Marxist. The underlying motivation is more likely that households forced to self-insure stay precarious and pliable […]
Is it something like mercantilism with Chinese characteristics?
Rich Country, Poor Citizens: China’s $20 Trillion Paradox Shows That For The Communist Party, A Few Thousand Tycoons Are Easier To Manage Than A Broad Middle Class