China, U.S. income gap continues to pull big experts say emigration will continue

Wang Spring Festival is approaching, no matter how good the Chinese speak, most foreigners will say "congratulations", while the Foreigner's newspaper is also concerned about China's pay rise. Japan's News of the Press, January 25, reported China's "income multiplier plan."　　The article said that China launched the "income multiplication plan", a sharp increase in the minimum wage, "if the wage standard for 5 consecutive years to achieve an annual growth of 15%, then payroll income will double." The paper argues that a sharp rise in wages will push up the cost of labor, which could lead to the withdrawal of foreign capital from the "World Factory" that has attracted investment from cheap labor. However, China's approach also implies a purpose: to adjust the industrial structure to high value-added industries.　　"The real intent seems to be to shift China's economic growth pillar from a manufacturing sector with a lower labour price to a financial and services sector." While raising the minimum wage, the income of farmers will also increase, the South Korean Central Daily is concerned about this.　　The report of the newspaper of January 24 said that the increase in farmers ' income for China's economic power. The article said that in 2010 China's economy had achieved an increase of more than expected (10.3%), in which the rural forces played a very important role. That's because the country's rural income last year hit its highest level in 25 years. With more than half of the country's population of 1.3 billion, rural income increases are significant.　　This will help China to turn into a "world market", but it is still a while before the big income gap between urban and rural areas is taken into account. China's rural income per capita rose by 10.9% last year, with a 7.8% per capita increase in urban incomes, according to the National Bureau of Statistics.　　China's rural incomes are growing faster than towns and cities, the first time since 1997.　　But while China's GDP is already second in the world, the gap is still huge compared with rich countries. Since 1950, Chinese average wages have grown by more than 10 times times that of Americans. In the 1980, average Chinese people's purchasing power amounted to 525 trillion dollars a year, and now the figure is between 5000 and 6000 dollars. During the same period, the productivity of each Chinese worker was increased from 3% to 19% per cent of American workers.　　In the past 5 years, the U.S. economy has grown by only 5%, while China's economy has grown by 70%.　　The data from the January 23 article on the Canadian Globe and Mail website, which sounds exciting, looks just like this set of data, it seems that China's goal of "catching up with the Premier League" is close at hand, but the newspaper cautioned that comparisons between countries are not as simple as we think. A new book, Rich and poor, is thought-provoking. The author Milanovichi The study of international inequality as a lifelong career.　　He pointed out that the astonishing economic situation has made the rich countries grow at a faster rate. He said: "If the U.S. GDP growth of 1%, India will need to increase by 17%, this growth rate is almost impossible to achieve." China needs to grow by 8.6% to prevent the absolute income gap from widening. So while China andIndia has achieved remarkable success, but it is not surprising that the absolute income gap between rich and poor countries has widened. "The Globe and Mail article provides a persuasive set of data: As Chinese purchasing power increases to $5000 trillion a year, the purchasing power of ordinary Americans increases from $25,000 to $43,200." That means the income gap between China and the US is expanding from around $25,000 trillion to $38,000 trillion.　　Even the richest Chinese workers will need a long time to reach the purchasing power of the poorest Americans. Milanovichi that such a big gap "has serious consequences." First, domestic inequality, which pushes large numbers of people out of the country, will continue to exist for decades to come, and secondly, the outmoded theories of social strata should be replaced. Today, 80% of the income gap is due to geographical location, and only 20% is caused by income classification. These geographical handicaps may be more insurmountable than the old class barriers of the 19th century.