Chinese Economics Thread

[Petrolicious88]

In Tri-state suburbs you can also buy a decent house for $800K to 1 million. The issue is that the commute is around an hour.

1 hour commute is very normal for those working in NYC or northern Jersey. A basic commute from downtown Brooklyn to midtown Manhattan is around 45 min.

 

[AndrewS]

$120k -$150k salary for young professionals working in finance, tech is the norm these days.

Many young people with a bit more experience make much more. Every time they jump to another company it’s another 15% raise plus hiring bonus.

But this is not the average person in the USA.

A $150K salary already means you are in the top 10% of earners in the USA.

If you look at the other 90% of the population, the average salary is less than $40K.

 

[KYli]

1 hour commute is very normal for those working in NYC or northern Jersey. A basic commute from downtown Brooklyn to midtown Manhattan is around 45 min.

The problem is when you coming from Westchester or Northern Jersey the traffic jam would make the commute time double. Beside the costly parking is another issue. And I am not talking about Westchester or Northern Jersey as it would cost over 1 million for a decent house in these places. I am talking about Central Jersey or Staten island.

 

[Petrolicious88]

It depends on how much the married couple in China would earn. If they both are engineers working for Huawei, they should be able to afford to buy in Shenzhen or Guangzhou.

The average family disposal income in California is way lower than $300,000.

Only talking about young professionals. The average US income is of course lower than $300k.

But married young people in the US working in tech, finance, health care, easily make combined family income of $200-$300k. Asian grad students can major in something easy like statistics or data analytics, and get a six figure salary job pretty easily.

 

[vincent]

Only talking about young professionals. The average US income is of course lower than $300k.

But married young people in the US working in tech, finance, health care, easily make $200-$300k. Asian grad students can major in something easy like statistics or data analytics, and get a six figure salary job pretty easily.

Wow, you really live in a parallel universe

 

[Petrolicious88]

But this is not the average person in the USA.

A $150K salary already means you are in the top 10% of earners in the USA.

If you look at the other 90% of the population, the average salary is less than $40K.

Only talking about life for young professionals, especially Asian immigrants that work in the US; as they tend to have high paying jobs.

For them life is easier in the US. Go to a job fair in any US city, compare that to a job fair in China. See how many people show up.

 

[Petrolicious88]

Wow, you really live in a parallel universe

You think two married white collar, young professionals working in finance or tech can’t make $200k? What universe are your living in?

 

[steel21]

Robots and automation will help China maintain its position as the world's factory and dominant exporter. However, robots will not be able to replace consumers in China's consumer market (after all, robots do not consume, they only produce); hence, China will either need to boost the number of consumers, or boost the individual purchasing power for each consumer, to ensure its large consumer market can keep growing. Otherwise, robots will only help insofar as growing manufacturing exports to other markets, and I'm pretty sure the government is keen to avoid the dangers of increasing export dependency.

In a sense you are right.

However there is far more consumption potential yet untapped in the Chinese consumer.

The Chinese are huge savers. A sustained improvement in quality of life could encourage sustained consumption far above current threshold.

A digital currency would also help curve the cyclical crest and troughs of capital and money supply.

Looking around, China would be home to the largest number of middle class (making the equivalent 0f $35k USD in 2019 dollars) anywhere in the world and could exceed EU+US+JAP+ROK.

I just don't think 350m Americans can out spend $1.4B Chinese in 2035.

 

[steel21]

Well the so called demographic problem is too many old people not working, fewer people in the workforce to generate the wealth for their pensions, not necessarily an overall reduction in headcount, until they die the old people are still consumers! Automation will help the reduced workforce supply the segment of society that no longer works through increased productivity, So you are conflating 2 unrelated things and coming to a spurious conclusion.

Yes and no.

The largest impetus in spending is in during the growth of a new family.

New house, bigger car, organic food, private school, afterschool programs.

While I no longer wear Versace Classic at the office during my single days, I spend far more now as a father or two than I ever did tending to a Z06 or e46M3.

 

[spring2017]

That has always been the problem for young professionals in China. Too many people. Too much competition.

That's a problem of capitalism. And it is indeed getting worse as China becomes more capitalistic.

If the production is based on human needs (as it should be in a socialist society), as opposed to profit in capitalist societies, then China has a huge need to development and produce, so there won't be any shortage of job to do.