Tag: Income Inequality

‘Reglobalization’ to the Rescue?

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Russia, China, Iran and their allies, by contrast, tend to use the term to describe a new world order in which they play a greater role, said Benedikter, who first heard “reglobalization” at a 2017 conference in Russia. Since then, he said, the term has gained traction as the global supply chain has experienced shocks from the pandemic, Russia’s war on Ukraine and attacks by Houthi rebels on commercial ships in the Red Sea. To Harold James, a Princeton economic historian, the term describes the constantly shifting relations in global…

Income Inequality Has Been Transformed Globally

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Culturally, the age of inequality is still churning: Over just the last six months, we’ve had the song “Rich Men North of Richmond” and Shawn Fain’s leading the United Auto Workers into a triumphant labor war with Detroit’s Big Three while wearing an “Eat the Rich” T-shirt. But at the structural level, our picture of American inequality also seems to be changing. According to some measures, U.S. income inequality hasn’t meaningfully grown over the last decade, the very period in which it has become such a potent cultural and political…

The Debt Problem Is Enormous, and the System for Fixing It Is Broken

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Martin Guzman was a college freshman at La Universidad Nacional de La Plata, Argentina, in 2001 when a debt crisis prompted default, riots and a devastating depression. A dazed middle class suffered ruin, as the International Monetary Fund insisted that the government make misery-inducing budget cuts in exchange for a bailout. Watching Argentina unravel inspired Mr. Guzman to switch majors and study economics. Nearly two decades later, when the government was again bankrupt, it was Mr. Guzman as finance minister who negotiated with I.M.F. officials to restructure a $44 billion…

China’s Young People Can’t Find Jobs. Xi Jinping Says to ‘Eat Bitterness.’

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Gloria Li is desperate to find a job. Graduating in June with a master’s degree in graphic design, she started looking last fall, hoping to find an entry-level position that pays about $1,000 a month in a big city in central China. The few offers she has gotten are internships that pay $200 to $300 a month, with no benefits. Over two days in May she messaged more than 200 recruiters and sent her résumé to 32 companies — and lined up exactly two interviews. She said she would take…

Why China’s Censors Are Deleting Videos About Poverty

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A heartbreaking video of a retiree that showed what groceries she could buy with 100 yuan, or $14.50 — roughly her monthly pension and sole source of income — went viral on the Chinese internet. The video was deleted. A singer vented the widespread frustration among young, educated Chinese about their dire finances and gloomy job prospects, like gig work. “I wash my face every day, but my pocket is cleaner than my face,” he sings. “I went to college to help rejuvenate China, not to deliver meals.” His song…

China Sets Aside Push to Spread Wealth in Pivotal Year for Xi

Chin@Strategy

BEIJING — For much of last year, China’s top leader, Xi Jinping, waged a fierce campaign to rein in private capital and narrow social inequalities. Regulators cracked down on tech giants and wealthy celebrities. Beijing demanded that tycoons give back to society. And the Communist Party promised that a new era of “common prosperity” was on the horizon. Now, the Communist Party is putting its campaign on the back burner. In doing so, Beijing is tacitly acknowledging that Mr. Xi’s push to redistribute wealth has unnerved the private sector —…

Why Bragging About Your Wealth In China Can Get You Censored

Chin@Strategy

He started by exploring the sauna, built into the palatial bathroom of the hotel’s presidential suite. Then the video blogger moved on to the dining room, where a chef waited with a glistening steak. The next morning, he awoke to a lobster breakfast, which he ate cross-legged in bed. “Today’s bill: 108,876 kuai,” or more than $17,000, he said after checking out from the hotel in Chengdu, China, waving his receipt at the camera. “I slept away the equivalent of multiple iPhones,” he giggled. The video was tacky, sure. Ostentatious,…

In China, Bragging About Your Wealth Can Get You Censored

Chin@Strategy

He started by exploring the sauna, built into the palatial bathroom of the hotel’s presidential suite. Then the video blogger moved on to the dining room, where a chef waited with a glistening steak. The next morning, he awoke to a lobster breakfast, which he ate cross-legged in bed. “Today’s bill: 108,876 kuai,” or more than $17,000, he said after checking out from the hotel in Chengdu, China, waving his receipt at the camera. “I slept away the equivalent of multiple iPhones,” he giggled. The video was tacky, sure. Ostentatious,…

China’s Xi Pressures Tycoons With ‘Common Prosperity’ Talk

Chin@Strategy

Four decades ago, Deng Xiaoping declared that China would “let some people get rich first” in its race for growth. Now, Xi Jinping has put China’s tycoons on notice that it is time for them to share more wealth with the rest of the country. Mr. Xi says the Communist Party will pursue “common prosperity,” pressing businesses and entrepreneurs to help narrow the stubborn wealth gap that could hold back the country’s rise and erode public confidence in the leadership. Supporters say China’s next phase of growth demands the shift.…