Capitalism vs Socialism!!!

1⃣ Absolute income growth

Broad consensus that China's HH income and wage growth have outpaced every major economy in the post-GFC era.

Absolute HH income growth drives HH demand (expenditures and investments like housing) which drives quality of life and welfare improvements. pic.twitter.com/EImsM9fIHx

— Glenn (@GlennLuk) May 18, 2024

Even if we compare China — which is still developing — to fully developed ones, income as a share of GDP for both narrow and broad measures are not low at all.

Here after-tax wage share (narrow measure) is actually higher than the U.S. 👇https://t.co/7n0ipfID4h

— Glenn (@GlennLuk) May 18, 2024

To understand why, we can start with an accounting identity:

Private consumption/GDP = HH income/GDP * (1 - HH savings/income).

China's HH income share is relatively low, but it’s the savings rate that is the major outlier. 2/ pic.twitter.com/XdfBK2iJDQ

— adam wolfe (@adamkwolfe) June 28, 2023

Despite what you often hear, labour compensation as a share of GDP is fairly normal in China. After taxes, wages actually account for an unusually high share of GDP in China. 4/ pic.twitter.com/L8g9L1FU1Y

— adam wolfe (@adamkwolfe) June 28, 2023

China isn't just producing more solar panels than the rest of the world. China is in its own category.

This is why the US Oil Lobby has spent so much to smear China and green energy and why the US Oil Lobby got Biden to add illegal tariffs to Chinese Solar.#BigOil #OilLobby… pic.twitter.com/y6dJvO8Cxy

— Jason Smith - 上官杰文 (@ShangguanJiewen) May 18, 2024