China's Major Tax Problem | Economics Explained
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- Опубликовано: 4 май 2024
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Please make a video on India's all text problem. And how we can solve that 🇮🇳
can u put germany on the leaderboard/can u make a website where u can see the national leaderboard?
isn't china the soo called surveillance, tyrant, autocracy country? how the ppls there dodge paying taxes and still alive? day after day why i keep seeing contradiction?
China is literally the first largest economy in the world. This propaganda that the US is, is a farce. This is literally proven every day of the year.
Can you do a video on the impacts of restricting/outlawing abortion in the largest economy in the world?
It's ok guys, you can just sell new residential land forever, it'll be fine.
Whoa, a Perun sighting! It's a meeting of the Aussie minds!! We are in the presence of greatness! 😀😀
This man recently made a great video on myths surrounding Putin’s war. Love the analysis videos consistently providing quality insights.
In china you lease the land so you can keep selling over and over.
Yea, who would think a Communist nation doing inefficient, and un-needed make work projects to keep up appearances.
yea because that worked so well for a certain real estate mega corporation in china... I suggest printing money at exorbitant rates just like the united States.
There has always been a very strong cultural believe in chinese literature that heavy taxation is a prove of governance failure, heavy taxation is also a phenomenon near an end of chinese dynastic cycles. So the avoidance of heavy taxation may also have been influenced by sociocultural factors... When we are talking about humans it may not always about numbers.
Heavy taxation means heavy theft
In ancient China, the tax burden was generally around 7%.
For example, in the Ming Dynasty, you harvested 100kg of grain, of which 4kg was handed over to the state.
While other East Asian countries, such as Japan, have a tax burden of more than 50%, and later implemented the system of four citizens and six citizens, that is, 40% is turned over to the state, which is also considered a kind system.
@@user-jq4uh3jy3j It's called theft, not tax.
@@mereen750 Tax is a responsibility of a citizen to help contribute funding of government programs (E. g. security, welfare, legal, basically responsibility of a government to its citizens). But if you are paying taxes and the government does not give something in return, doing their responsibility, you are right. It's theft. Politicians rarely understands this and act like its only a one sided obligation. Obligation of citizens to fund their lavish lifestyle.
In China, what you said is somewhat true. Especially during the end of dynasties where authorities cannot fulfill their obligations. Warlords stealing people's produce in guis eof taxation. Lol
@@linming5610 So when the thief steals your money under the threat of violence and says he only wants to protect you and that he likes what he buys with it, it's not theft?
Years ago "The Economist" reported that you can buy accounting software in China that keeps three sets of books. One for the tax man, "See how I'm losing money!", one for the banker, "See how profitable my business is!", and a real account.
It can keeps 5 sets of books. One manager account (present real business), one for taxmen(to avoid tax), one for loan banks (to get more cash), one for minor shareholders (to justify low division) and one for owner (so they will understand can theft how much money from company without noticed by other parties.)
Small correction: You said the Shanghai residents were banned from leaving the house "outside of getting groceries". This is wrong. They were banned from leaving their house *even to buy groceries*. That's why the headline read "residents running out of food", because they were relying on government deliveries which were pretty unreliable.
COVID couldn't be more overrated, can't imagine the frustration, boredom and worry those people went through.
@@sudind American's population density is much much less than China's, and there are 1 whole fkin million people died of covid. Covid's damage could be higher and lower in different countries. If China treat covid like US did, there will be easily 4-5 million people died. China cares the lives of its people, that's the simple logic. US? from government to normal people, nobody gives a fk about other's lives, especially elders'
@@alexanderchen6373 Exactly. Nobody cares about the madness. The truth is that food needs to be paid for, and there is only so much government can do without having chain effects on the nation. The gears that run the country needs to keep on running or else the economy will have more severe effects on people than COVID. The death rates spiked shortly after lock downs were lifted despite high vaccinations. Medicines will not kill this disease, and the world has accepted that. Zero tolerance for COVID is nonsense that does more harm than good. China needs to admit its loss against the war against the virus like the rest of the globe.
@@sudind "the world has accepted that" does not mean China has to. If China can do better if China can save 5 million lives why would China "admit its loss"?????? The rest of the world lost doesn't mean China has to lose too. "The economy will have more severe effects on ppl than covid" this probably holds true for the rest of the world, not China. The western countries especially US can't even educate their ppl to wear a fkin mask, of course zero tolerance won't work and harm the economy than covid in these countries. Congrats on your public education system. China is doing ok right now and able to hold it as the world's factory. If China "admit the loss against virus? 5 milion Chinese will die for that (of course YOU don't care) and this very World's Factory will stop working. And western countries can't buy cheap products any more, on top of this stupid inflation caused by US, the world will turn 10 times worse than now (including China). So stop pointing finger to China and tell what China should do, you know absolutely NOTHING about China.
That's insane. Even in NZ Auckland here with lockdowns people overseas freaked out over, I still went grocery shopping, to the pharmacy, brought art supplies and stationary etc.
Sustainability should be a metric in your rankings. For example an economy over reliant on proceeds from one source scores lower than a diverse economy which collects proceeds from many very stable sources.
Does that not fall under "Stability and Confidence"?
Also freedom and taxes should be included
@@TheSkiddywinks maybe but I would have thought stability and confidence relates more to politics
@@realfrantheman Freedom would likely introduce too many variables and bias, and require to many assumptions.
I would argue for sustainability as a metric but more looking at the environmental impact of the sources, f.e. if selling of your resources has a negative environmental impact long term the sustainability score should be lower
8:35 just LOL. If the financial crisis taught me anything (and it taught me a few things) is that rating agencies are actually a total joke and “rough guide” at best.
Just some "ivy league" economics guys with their usual subjective projections
They definitely got a few bribes and/or threats from the CCP to boost that credit rating because you don't even need to be an accountant to realize how rickety their house of cards is.
Which financial crisis?
@@paullnetinstitute4799 not really. They are really smart people. They KNOWINGLY give false ratings
Yeah, rating agencies are in the business of closing the barn door after the horses have already left.
I remember when I worked in China, back in 2019 the taxation bureau actually sort of begged me to pay taxes, they said it like: “maybe you should start paying some tax?”
Exactly internal revenue SERVICE
Lies again? MLS Education Income Tax
DK Works So your a leach, not contributing to a country your working but you won't dare do the samething in your country
@@baikeiast5255That's an oxymoron. If you are working in a country, you are already giving something to that society. How can one be a leach for giving?
@@user-zu5do6ri6respecially since working immigrants often don't get many public services. They don't often qualify for unemployment or disability and may not be able to use public Healthcare and they rarely qualify for things like low income housing. That's especially true for xenophobic countries like China.
FYI: Irish person here. This “dodgy” “Local Government Financing Platform” you described is almost completely identical to Irish semi state bodies like Irish Water and ESB. Because of debt rules in the EU a lot of European countries have semi state business that do the same thing
Well said! I am also here to learn more genuine ways on short term investment, any idea here?
@@rajeshupadhyay5683
lookup Priscilla Dearmin-Turner, this is her name online, she's now the real investment prodigy since the crash and have help me recovered my loses
Investment now will be wise but the truth is investing on your own will be a high risk. I think it will be best to get a professional👌
@@lezliewhicker8450Thank you, Going through her profile in her webpage, she smashed all her state certificate and accreditation🙏
I heard she always have a way of linking someone investment into something new and profitable?
My wife was paid a set wage plus a bonus wage. The set wage was taxed and the bonus was not and the bonus was at least twice the set wage. So effectively she was paying tax on only a third of her wage. This was normal practice for a majority of companies. When I see data on the average wage of the Chinese citizen I always laugh because it is no doubt way off the truth.
@@makemetallichydrogen426 lol no doubt on that, india no.1~
@@shawnz3307 oh,you must be from a great country😁
@@makemetallichydrogen426 first all, match China's GNI
@@shawnz3307 Jai Hind
@@makemetallichydrogen426 Are you sure?Is clearly the king of the universe
This video misses a very important aspect of the chinese tax system. China gets most of its revenue from VAT/Sales, which are relatively higher compared to countries in similar economic situations. So it's not like the government is not collecting a lot of money, but the tax revenue goes down in times of reduced consumption like now. There has been interest in reforming that system but income taxes are very very controversial among the chinese public especially due to the huge variance in quality of gov services. Before china can switch to income tax base, they need to improve public Healthcare and a much bettersocial security net before they can justify taxes
This. It's very misleading to look at tax revenue as a % of GDP in China. The macro tax burden (there are two different definitions of it) is probably a much better comparison.
With cash and private transactions some industries don't collect and or don't pay VAT. Similar to most post USSR countries. And VAT rate ranges from 0-13%, similar to most other countries.
It doesn’t really miss it. It’s not that big. For example most exports are exempt from VAT, and you can claim a refund on any VAT charges. Too many loopholes that can be exploited. They’ve been saying they will upgrade/change it for a couple of years now. 95% of all VAT is refunded so it’s not worth mentioning.
China is not just another western country. If the state wants taxes they can just make new ones. In china the state is seen as an elder and must therefore be respected.
@@miniaturejayhawk8702 The ccp is also interested in keeping stability. Can't tax people too much otherwise there will be protests.
the severity of the condition of our economic circumstances is beyond many peoples comprehension and many continue to deny its existence.
It's like the Pinocchio film where the children are just enjoying their night of decadence until they're changed into donkeys & loaded up
@@RichardWKeys The deliberate policy of Government, Big Business, Academia and of course the Media of dumbing down the American Sheeple has proven to be a great success. God Help our Nation!
Denial is the first stage of the 5 stages of grief, I've already been through all 5 in grieving the loss of all I've ever known in this present market. Many people will not accept the coming agendas and when it gets right down to it death will be preferable imo.
@@brandonr.navarro5896 To recover your losses , get yourself an aid (FA) because Invstin requires experience and higher knowledge. So to attain productive Invstmnt, It's important to have a solid support structure ( FA) to guide you.
@@christopherberends8242 Do you use any FA? If yes, whats the progress so far
I think this explains why my college professor said that every chinese company maintains three sets of books. One set to show the government which minimizes taxes paid. Another set to show the shareholders to maximize shareholder returns. And yet another set which accurately records the true state of the company's finances but this set remains confidential to the company and does not get released.
Isn't it what every big company does in the west? None of them pay tax, but all do record profit...
Lol “everyone” contrary to popular belief the 1% pay 99% of taxes collected in the USA. Everytime there is a video insulting Chinese or Russia in the person immediately deflects to the west 😂😂😂 barbaric Neanderthals argue like 6 year olds. Still socially behind by 3 centuries
@@tiloalo they only don't pay federal taxes. They pay billions in sales taxes and local taxes. It just makes for a nice headline to say they pay 0 taxes but usually the article will then state that its federal income tax that is at 0%.
Sorry but that's retarded. All the government has to do is look at the second set of books. This would allow them to call 'bullshit'. I don't believe your professor's story at all. Not surprising. Professors are just thinkers, not practitioners. I guarantee he hasn't worked a real day in his life.
@@tiloalo the just use company structures to reduce taxes which is legal
Philosophy of perpetual growth, government bailout... reminds me of something.
They’ll end up like the USA. Reeling from late stage capitalism
Yeap this goes against natural growth and competition.
What Keynesian economies does to MFs.
Major Entertainment companies from the USA?
At least the Chinese grow in actuality with new cities and greenified deserts while America grows only nominally but in reality is decaying and on its last leg.
I have a seriously-hard time believing it deserves 6/10 on "Stability", given that individual businesses can (and regularly do) get smacked down on a whim from the central government.
with all the shenanigans that currently happen right now , that is doubtful
For me it would be like 4/10
Well, the economy will only destabilize there if their party destabilizes. As of now, the party is as strong as it was during Mao.
I think it meant the stability of the entire economy not a particular buisness
@@ishanbhusal0177 i dunno man, during mao era people died of famine, that's not strong
Besides those leases, the 1 question I've always had is the interaction between land prices/sales/demand and an ageing population. Around 2050 when 40% of China is retired and at least some of them start selling their homes to a decreasing pool of younger investors (real estate is seen as the only really secure investment asset in China), what impact will this have on real estate demand, prices and the continued ability of local government financing companies to sell land to hungry developers?
I think demand and population size shouldn't be seen as completely linked.
What I mean by this is that if the Chinese population gets individually wealthier, demand for consumer products will still rise.
Obviously, this might not apply to real estate
Chinas population has already begun a long decline that will continue to the 22nd century. And because the Han population is very xenophobic to a degree I don’t see immigration helping anytime soon, house demand will drop it won’t increase
@@zenpai5998 I disagree, it's impossible to "predict" future xenophobia.
In 50 years, Japan and China might finally open up to some immigration once the generation of xenophobia and cultural fears disappear.
@@J_X999 that’s extremely hard while China keeps pushing anti Japanese media, seriously do you not take accountability for the CCP? They’re hostile to everyone who isn’t China
@@J_X999 also do you really think Japan is in a position to send its people to China? It’s also in decline with its population
Such an insightful and well researched video thank you!!
After the 70 year lease or 20year lease they can start to implement year to year lease witch would basically be normal property tax.
That is certainly possible, but the policy would cause a collapse in property values, severely reducing the viability of new developments and reducing revenue.
@@alanpatterson2384 Yes property values will decrease but only for properties that have less years of lease left. Say if 10 years is left then people won't buy it so it will become cheaper but the 70 year one will be costlier. So overall we can say it's going to be balanced, not completely though.
@@hackerpro5015 Not balanced for the individual though, it would be massively unpopular.
The idea was raised a few years ago but the pushback was too much. Now they say it will be free to continue the lease after 70 years.
Hey!! Did you know God is three in one!? The Father, The Son, and The Holy Spirit! Bless him!
Jesus died for our sins, rose from the dead, and gives salvation to everyone who has faith in him! True faith in Jesus will have you bear good fruit and *drastically* change for the better!
Have a blessed day, everyone!! ❤
Hello EE! Could you put a video on Germany and rank in the ee leaderboard. Last video on Germany was like praising its economy despite the hardest fate ever but not ranking and camparision
agreed
Bitte
This ☝️
I believe Germany would get a super low score today, they are on the loosing end of many technology transfers with China. Chinese auto makers are replacing Germans. They have no natural resources.
pin this lad!
This is amazing bringing lots of insights into a foreign country is hard enough as it is but explaining in such detail.I only wish I could do such research myself being an engineering grad myself I dont understand much,but find it incredibly interesting!!!👍👍👍
I think they put a lot of work for this
WOW. Not many people outside of China know that local government financing vehicle exists. Nice video and remarkable research.👍
As a Chinese I can confirm that all of the issues mentioned exists in China and are as serious as they are said in this video. Your video is pretty much a spot-on.
3:21 Ahh, actually in the US there are some towns and cities completely dependent on traffic tickets. Take Henderson, Louisiana, where fines collected made up 89% of its general revenues in 2019.
Based on your economics leader board analysis at the end, one would think that China is a very good investment destination. However, your videos over the last year give a very different vibe. A seemingly over extended economy heavily reliant on real estate. How do you explain this contradiction ?
It is not a democracy, the rules we're familiar with do not apply to it.
This shows how well China hide their problems from statistics
Investment opportunities are very different from economic power. The economy of China isn't going anywhere, and will probably continue to grow, the system of government limits investment markets to a very unsteady and risky asset. So while the economy and nation will survive, any investment you make won't
@@levitschetter5288 ya if your a foreigner they will just take your money .
And if they don’t , they won’t let you take it out of China
China is a NO NO and the ccp needs to be dissolved screw that destroyed
He's Australian. That explains everything.
I'm super curious to know how you research your videos? it's really impressive the amount of knowledge in your videos!
Your analysis is phenomenal. Thank you!
I was looking into buying an expensive piece of equipment from China. I learned it would be subject to the Trump tariffs and when I mentioned it to the salesman he just straight up said, "Oh don't worry, we'll just send you a fake invoice so you won't have to pay as much."
I wonder what more was fake about said expensive piece of equipment....
it's surprisingly common. The company I work for has sales teams and factories in China. The cost of shipping things in and out of China (customs etc) is very expensive, unless you're in one of those special economic/customs/industrial zones then it is processed through more simply. So the common way to deal with that is to call it a "commercial sample" with basically $0 value.
The special customs zones means if your company builds a factory there, goods your factory makes and ship out of there are not subject to sample level of customs scrutiny as if you were on the other side of the zone. It's all very strange when you think about it.
Someone I know does that with all imports regardless of country.
Its not exactly fake. They basically create a transaction stemming from Vietnam or Thailand, where there is a real legal entity, but more like a procurement arm that books sales. TADAH trump tariff bypassed.
Yes, that's typical in China, almost everyone does it, including some of my own relatives. It's also how rich people launder money and get money out of the China (circumventing the $50k/year capital control law).
7:06 do not misrepresent the severity of those lockdowns, during a significant part of it (and even still now in some places) people were literally sealed inside their homes, and in other cases people put up chains and walls to stop people from leaving their homes.
Eventually, they let some people out to buy groceries in groups, but only gave them a few hours to do it, in those hours you had to get to the store and get through the multi block long lines as well.
This is severely under represented in the video. China can not abandon zero covid. They would have to admit that everything they have done has been pointless and that their vaccine is garbage. This is politically devastating for a country that is already dealing with so much internal turmoil.
Genuinely made me really upset to see a city I love be essentially strangled to death. I don't think Shanghai will ever be the exciting, vibrant place it used to be again.
I think the word youre looking for is "downplay"
EE sits on the fence too much on too many issues. Lockdowns being one of them.
@@pritapp788 I'd rather that than all the blatant pandering and bias I see so much more on the internet, especially wrt China.
I've read morning brew for over two years. It's a good newsletter!
Here in Brazil the middle class is penalized with high income taxes, while the rich manage to evade the rules or pay little. Also, we don't have a VAT, but several different and confusing consumption taxes. We need a fairer and more simplified taxation system.
middle class is penalized everywhere. In Bulgaria we have 20%VAT + 10% flat "income tax" over your salary which totals 30%. This is w/o the other taxes for waste, buildings, car, healthcare, etc. If you own a small company, you cannot get government order - that's how the mid class is hit.
That's how everyone handles taxes. In the US our wealthy elites pay a smaller proportion of their taxes by abusing different tax deductions and the system of capital gains tax. You can defer your investment earnings from getting taxed as long as you don't sell the investment. You can, however, use the investments as collateral to get very favorable loans and then wait for a year where the market crashes to sell allowing you to write off your investment losses (it counts directly against your tax bill so you can continously offload your poor performing stocks and assets risk free as they reduce your tax burden while retaining the high performing investments). They often pay little or no taxes even as their investment portfolios go up billions of dollars.
@@Pensnmusic Except the data shows this isnt true at all. The top 1% in the US pay almost 40% of the income tax collected, while earning 20% of the total wages. Youre also ignoring the fact you have to take a loss, to use a tax loss... In what Universe does it make sense to tax a $1000 gain, if I have an offsetting $1000 loss?
@@Tttb95 Most people are talking about proportional income. When you work 50 hours a week to make $100k and then get taxed down to around $70k it feels alot worse than making $30m and getting taxed down to $15m.
By the way it's India's problem too. Too many freebies and only 3 percent pay income tax. Those who pay are getting fleeced
i pay income tax ( 20% of my money (
but India's economy is formalizing at a record pace.
@@PK-tt5kk Still a lot do.
Nothing in comparison to China, also even after formalization, people find the way to avoid paying it somehow.
This is where corruption makes up the shortfall in funds.
@Sumeet tanwar They pay indirect taxes in other countries too.
Oil prices is only one thing, they are mostly affected by foreign influence as well, but most of the things are much cheaper in comparison to other countries.
Very generous on the Stability and Confidence number IMHO. I'd have said 2-3 personally
Stability should be high, due to China's willingness to use violence to enforce it's governments wishes; it will have it's way until it lacks the ability to get it's way. Confidence I agree with you on.
@@absalomdraconis who is that stable for though? Certainly not for businesses or investors
Exactly like it's not stable at all. One of their largest companies literally defaulted on their debts not that long ago. Shanghai which was their economic hub, has suffered huge economic losses because of the forced lockdowns.
He's a real economist you should believe jim
fewer is used to refer to number among things that are counted, as in "fewer choices" and "fewer problems"; less is used to refer to quantity or amount among things that are measured, as in "less time" and "less effort."
Many years ago, I worked my first job in a small French company in Shanghai, my boss pays all the taxes as regulated, he bankrupted 2 years later.
I am from india, and It is true here also. Very small minority approx 2.5 - 3% of the population pays the taxes because the top level earners have the means to evade tax and the lower end of the population earns well below the beginning income tax threshold. This severely limits the amount of money govt can spend in india. But surprise about 25% or a bit ore of the govt budget comes from direct taxasion. The reason for sustained supremacy of countries like USA and Europe is the fact that they have a very efficient income tax policy, allowing them to have huge amounts of money to spend.
what can India do to raise more taxes?
@@AmitJoshCjPope Rasing taxes will be a very unpopular move here according to political landscape. The existing tax base consisting of private employees, govt service personnel, small and mid business owners are already unhappy by the double taxation. These guys pay tax when they earn and also when they spend. It's hurting them but they aren't organised enough to make a meaningful noise to fall into the ears of policy makers. Increase tax base will make others really unhappy and that shows in the voting patterns
The US also creates the money to spend out of thin air.
same like indonesia, our govt prefer to taxing corporation but forget to empowering the low income worker, our minimum wage still at tax free bracket🤣
@@AmitJoshCjPope Making stuff digital makes it way harder to hide income since there's less cash on hand transfers and more digital transfers. UPI should help to solve this issue.
I wouldn't be surprised if the reason everything is so vague about what happens after the land lease expires is so that they would have justification to take your land any time they want for free. Just like how they can bring anyone down for any arbitrary reason with their tax system.
We need to demolish this apartment complex to build a new highway. Hey land owner, your lease expired 22 years ago, why haven't you renewed your lease?
What? I was never told I need to renew my lease. No one renews anyways.
I see, well if you want to keep your land you must pay for the 22 years of illegal occupation + a fee + a new 100 year lease.
I can't afford that.
That's too bad, but don't worry, we'll take good care of your land and your tenants. Send in the demo crew.
The lease got extended after some validation. It's just an inherited communist idea that no individual but the country own the land while China is a Capitalist power house now.
That is EXACTLY how things work here.
Very true
Sounds like US government
You are projecting western government of tax collection via anyway necessary including auction off your home or property for couple dollars of unpaid tax
Thank you for your work!
The US is only at 20% ,in France ,it's 48% (Highest in the world) ,with Denmark in 2nd place with 46% and Belgium in 3rd with 45% .
And then 65% of the spending of the French governement is public spending ,for comparison the USSR was fluctuating between 52% and 56% during it's existence .
I'm originally from Shanghai. Yeah the tax system is full of holes and tax dodging. The Chinese government had tried to rollout property tax (been trying it out in shanghai) but the covid put a halt to that. I think property tax is probably the most fair and reasonable way to tax, and also harder to hide real-estate than income. Of course the problem is that even a low property tax might bankrupt many people who own properties that might be woth millions of USD on paper but generate litte or no income. So if not careful or lucky, property tax can lead to a sell-off that collapse the property market.
@CK Lim ikr plus the factors they mentioned later esp about people not being able to produce nil income off of those properties is just💀💀
@CK Lim Usually the renter doesn't pays said taxes. But SOMEONE owns it, and he/she as owner has to pay certain taxes.
At least that is how it usually goes i countries. China is weird though...
@@MasticinaAkicta In China all land is technically state-owned. Property "owners" actually have a lease, this is explained in the video.
Land Value Tax is better
@CK Lim if you only tax rental property then (1) just not rent it out to avoid tax, and or (2) dodge tax by paying under the table. So the government end up back where it started. In Shanghai, it's trying out putting property tax on second property onward.
Is this video sponsored by the Chinese government?
Joke aside, as a long-time subscriber and a Chinese, I have to say EE is being so optimistic about China's economy, especially the stability. The economy has grown amazingly in the past 20 years, but I am very pessimistic about its future. The economy and society are very INstable because they are highly influenced, if not fully determined, by a few people at the top of the government. The negative consequences of breaking up with the west, as well as the aging society that has so many talented people fleeing, are going to manifest gradually in the next few years.
See, I am an Indian.
Breaking up with the West is both a problem and an opportunity ( it's a challenge).
Yes a lot of people are fleeing. But i believe there are millions of chinese as are millions of indians who would stay and toil for the land they were born in. If we do not stand for our family who else will.
And we are lucky for we live in times of uncertainty. I am not concerned with the results. I will do my work - whatever happens will happens
And yes, china has its problem but you have an opportunity to fix it. Best of luck.
As a guy with 2 arms and 2 legs, i find all these ethno-proclamations cringey
the whole world is facing the same population challenge,not just in asia so elon musk is always urging ppl on it,plz making baby
They have the infrastructure, with infrastructure comes immigrants or visa workers.
Well, the Chinese are famously pessimistic about the state of their country. Chin up mate!
Great video as always. Would love to see you take a look at Indonesia's economy.
This channel deserves more subscribers!
They should try out Georgism. Just a tax on the natural resources. And in a society where evasion is rife. Land tax cannot be dodged. And land tax actually improves economic productivity with its positive incentives.
That wouldn’t work in China the government owns all the land, they would be taxing themselves.
Land tax? would need to have someone other than the government to own the land, as it stands you can only rent the land not own it as I understand.
This is what they do, they depend on land sales.
I believe there were proposals for that but at a regional level as an experiment. Not sure if they did it though, pushing a new tax is very hard.
Exactly my thought, suprised that you think the same.
I'd love to hear what you think about Canada's housing market....
wealthy chinese know all about it! :) hahah
CCP has fucked it up.
It's a great way to launder money.
"Is housing in Canada a Giffen good?" would be an interesting video
@@luddity How?
Always interesting, thank you.
can you upload these to a podcast feed as well? that would be very convenient
You need to look up Peter Zeihan man, he has a drastically different view of the future of the Chinese economy, it's reliability and where it is going! I find it difficult to see how it could be second place in the world when the property sector is literally imploding as we speak and a large volume of foreign capital is currently fleeing the country (due both to lock-downs and other factors). That being said, I don't see how Ireland is no. 1 either and I'm an Irish man! :L :L :L anyway, despite my criticisms, keep up the good work!
China sees foreign capital as a security risk for some reason so that's why they discouraged foreign investors. China has chosen social issues over monetary benefit such as controlling the property sector by cutting off Evergrande and having a low tax rate. This will definitely have consequences in the future.
Seen alot of him, I find alot of his predictions to be stretches. China has enormous potential, but their government is handicapping them.
I dont remember the exact specifics but Ireland set up a sort of super business friendly zone which attracted alot of companies to have their European headquarters out of Ireland. I think they cut some of the special privileges that the companies got but they still are headquartered there out of convenience.
en.wikipedia.org/wiki/Shannon_Free_Zone
Zeihan is good at explaining the west, especially America. But, he fails at properly forecasting countries in Asia
I think it just depends on what you're trying to rank. For economic power they would be #2 behind the US. For industrial power they're at the top. For natural resources they're in the top few. For future prospects they'd be somewhere in the middle due to the massive growth but copious systemic issues. For income they're in the middle. For "stability/confidence" they're below average.
The leaderboard in general is more about the current proven state than about the probably future state. EE tries not to speculate too much and often mentions in the ranking how the number will likely change due to various factors. I think there is a good argument to made for redoing or at least clarifying the ranking methodology. Perhaps not giving an "overall" rank would make the most sense but for RUclips views is may not do as well.
A very well explained summary - I do appreciate the effort you take to make this information, accessible, clear, comprehensive yet simple ! I do look forward to each of your presentations - thank you 😊
So on point! Great episode on China.
When I arrived in China in 2010 I was sitting at my desk reading a book titled something like " Tax in China". One of the office girls walked passed and seeing the titled said "ah , tax...no need... no need pay tax" .
This was always going to be a challenging video for you to create/produce.
I know some people will focus on the scoring, but like all things in life the value is in the detail that goes into determining those scores and the overview presented beforehand.
IMO: The metric that shows the real productivity of an economy is the percentage of the GDP that is delivered to the bottom 50%.
I want a new ranking video if that housing bobble officially bursts.
It will and China will cease to be a major part of the world economy.
Unfortunately the ranking list doesn’t have negative numbers on it.
Thanks for another great video!
When i live in South China i knew Chinese teachers. They assumed their tax was somewhere between 2 - 10%. They thought any tax was wrong and did not like it ( a bit like all of us ) This was in an Autonomous Region. Of course many Chinese that ran their small businesses did not pay tax or pay only very little.
Guangxi, been living there for 15 years and you're right
A fair income tax is a way for citizens to hire other citizens to provide services that are needed. For example, a certain percentage of the population is students. Given an optimum ratio of students to educators, one can justify a certain tax rate for that purpose. Similarly, one can justify income tax rates for other services such as healthcare. However, this idea is currently being stress-tested due to demographic trends affecting the ratio of earners to pensioners.
Oh my! This is such a good channel!
"If this sounds familiar to you, then you're probably starting to feel a bit worried"
Not if I view China (the state) as an enemy.
The world will be better off if the ccp is destroyed
If say still be worried. If they do fail, like you'd want your enemy to, it'll still have knock on effects on the global economy, and therefore you too.
I told you... idk these ppl that says China number 2... for what how long? It has NOTHING and will be NOTHING!
@@kylefawcett4810 Right but to class them as your enemy and want their downfall would be to have considered the consequences already. No nation state looks to conquer or remove another without understanding the ramifications, and hasn't done for centuries.
Perhaps China (the state) is so distasteful to me that I'd suffer personal hardship to see it collapse. It's a threshold rooted in personal values, there's no absolute truth to it.
While I strongly wish for the end to the CCP's dictatorship, the damage of an economic collapse would do both to the people currently under its rule and globally still is a worrying prospect.
In China everyone buys everything on their phone. They should lower the income tax below $100k to zero and instead have a 20% VAT. Easily enforced since everyone buys online and their government runs all that.
That would cause an absolutely massive revolt.
People would just shift to buying in person then
You will see a revolution... China isn't like most Western rich lord nations. The ppl r fking poor as fk. They earn like sht 2000 rmb or 3000 monthly and if you just ramp up their fking living costs they will just die
Excellent Enterprising Endeavor 🤝
Similar problem in India - huge swath of the economy is made up of the informal economy. India's total tax collection is only 7-9%.
Probably less than 5%
Can you cover India please ? Can you also cover the causes of the current inflation in the US? Thanks!
India would most likely end up with a score of around 6 on the economic leaderboards using the current scoring system
Economist here: Primary policy causes of inflation in the US are:
1. 4-6 years of unusually low taxes without concurrent spending cuts
2. Large short-term stimulus spending in the form of direct payments
3. Extremely low interest rates that encourage lending and spending.
4. Restrictive immigration policies that prevent the leveling of supply and demand in the workforce.
5. Last but not least, global events (COVID-19 and related shutdowns, Russian invasion of Ukraine) that have snarled supply chains
@@jacobbwalters8133 how much of the inflation fo you think is solely due to international factors?
@@ben5056 I am going to preface this post by saying that while my previous post was based entirely on data and tangible research done by credible think tanks and research institutions, this one is based in large part on my experience. While it is easy to pick out drivers of inflation based on historical data and trends, it is much more difficult to pinpoint just how much of a role each factor plays. I am sure that other economists have slightly different views.
I personally believe that international factors like war and disease have played a greater role in pushing inflation than the average American is willing to admit. When people begin to feel powerless about a situation, they tend to envision solutions that put them back in control. This is why in democracies the economy is such a good indictor of reelection chances for incumbents. In times of crisis, they become easy scapegoats and voters express their frustration with economic circumstances by voting them out of office.
Unfortunately, the reality is that economic circumstances are determined by so much more than a single person or party. I also find the international factors to be inextricably linked to the policies they spurred. Essentially, you get into a chicken or the egg scenario. Was Covid to blame for supply disruptions or were Covid related shut downs? Was the invasion of Ukraine to blame for inflationary effects on gas and other commodities or were retaliatory sanctions? Your answer could depend on your opinion of the necessity of the reactions in both instances.
Inflation is the US was caused by supply chain issues and the low rates the federal reserve imposed for so long compounded with the more reactive reaction rather than pro active one. Um. That’s basically it.
Chinese citizen here. Chinese citizens do pay taxes, but not visibly in the form of a tax bill. The absolutely majority of taxes in China are VAT/Sales Tax levied on sellers. Prices of most goods are implied to contain this tax. (You can see this when China reduced base VAT rate for electronics from 17% to 13%, and Apple immediately reduced their sales price for iPhones in China to reflect that.) Then there are income taxes (payroll taxes etc) which is withheld before money even reaches the individual. You see payroll taxes withheld as part of your payroll, and other income taxes are automatically transferred from your bank account.
Please correct me if I misunderstood it:
The local government is basically raising money (through an intermediary institution and a bank) by bundling land and selling it as bonds. This money is then used to build infrastructure to make land more attractive to generate lease income. If the lease income is enough to pay back the money initially borrowed to fund the infrastructure project, the government would not default on the initial debtors...So that's all good. The problem is that if the lease is perpetuated for free that the primary income source will fade. So in order to sustain income, the government keeps selling land as mentioned before.
Conclusion:
1 If private investors are not willing to lease the land anymore the money that is continuously raised to make that land attractive can not be paid back to the private debtors and the system will collapse....
2.The real estate market needs to grow in order to sustain income.
So the solution would be to at some point stop infrastructure projects and the issuance of those bonds and to develop an alternative income source.
Did I comprehend it correctly?
From what I understand, it's dipping into the same "product" such as land value/sales at multiple times in an economic circuit. If at any point the value of the land drops or if the debt built on it becomes too much, the whole thing implodes. Reminds me of the game using marbles and a wet paper towel...keep going until the towel can't hold the marbles anymore. Final player is left holding the bag.
I remember when working there that our MD was at a presentation from local government stating the 10-15% of foreign companies paid 60% of all taxes end pensions while employing less people and most of them not making high profits. Salaries were same as market rate, we lost 50% of people after every Chinese New year.
I run an extremely small business in China and know quite a few others who do also. Our biggest headache is hiring and retaining staff. It's an absolute nightmare that never ends. Either they're incompetent and unreliable or barely competent and unreliable. The moment you think an employee is loyal or with you long-term, they're gone. This seems to have little correlation to salary. Chinese just seem to have a different set of values in this aspect of life as in most others. They'd rather work for a huge corporation at a much lower wage then a smaller company. Very few entertain the thought that they can work long term for a smaller company and become a partner or learn about a particular business and open their own later. Most would rather be an anonymous cog in the machine who spends every waking minute trying to dodge responsibility and decisions.
@J. Joseph why don't u just double or Triple the wage? If you think your employee isn't loyal then you just aren't paying enough to get them to be loyal to you.
@@inkbold8511 I see you don't own a business. Thank you for your insight.
Huge corporations are more likely to have political connections. They are the ones that get bailed out. Perhaps Chinese employees consider that a safety for their job.
@@j.joseph5353
I agree with Ink that you are just not paying them enough.
(I don't own a business.)
As a worker, i will take any job if they cam make me an offer I can't refuse.
I think most competent workers will seek out larger companies since there are more opportunities for advancement.
There is a clear limit on how much you can earn working for a smaller firm.
Where in larger firms the annual budget of one department might already surpassed the gross income of a smaller firm.
I feel like that score isn't going to age well 😅
Right? I was thinking how confidence was high in the housing market before the 08 crash too... it's high until it isn't
one way or another.
I wasn't expecting it to be so high
China proves everyone wrong bruh just look how much people thought China would collapse in the 2000s
China has a property bubble that never pops
Need a follow-up analysis a year from now to see how far it drops. Assuming that the country doesn't disintegrate.
Australia NSW’s government had been doing exact same thing for years to raise short term revenues.
You may have a key misconception of the 70 year land lease.
1. When China initially leases the land to developers, it’s not lying empty. Usually, there are people living on the land already. They just don’t own it.
2. The new developers cannot kick people out of their existing houses or tear them down just because they brought the land rights. You can see lots of videos on RUclips showing new developments built around a single old house, or developers threatening residents to get them to sell their houses.
3. Right! The new developers, who have already leased the land from the government, now have to buy up each old house individually before they can develop on them.
4. Likewise, at the end of the 70 year lease, the land rights revert back to the government.
5. The government will then just lease it again to another developer for another 70 years. This can be a perpetual cycle.
6. (No rent is ever paid by residents to either the government or the developer for the land use)
Everybody wins.
The government gets revenue without taxes, the residents get big bucks for their old houses, and the developer makes money selling new houses.
The risk, as you have pointed out, is if people no longer want more, bigger, and better (more expensive) houses.
But the risk of reduced demand is common to every facet of capitalism.
11 minutes into the video and finally you come to the actual problem mentioned in the title. Off late a lot of your videos (or atleast most part of the video) seems to be significantly different than topic mentioned in the title.
How is property tax any different from selling land use (renting land)?
Ok, so there's the "ownership" caveat. Otherwise, it's functionally the same: government making income off of land use.
You could even argue that property tax basically invalidates private ownership, because if you don't pay your taxes, you can have your land taken from you (I think).
Taxation is legalized theft.
@@JanBruunAndersen pretty much. It sounds kinda cliche though. The important thing is that it is supposed to pay for things that an individual can't pay for, like a road or bridge.
It's possible to just print money to pay for everything instead, but the free market would mess that up pretty quick.
The real crime is actually how they structured the debt/financing. The private sector owns most of the government debt, so basically this taxation or "legalized theft" is actually profits going to the private sector. The government is just tax collector for the rich.
educated comment.
@Mekehl it's even worse than counterproductive.
When the government cuts taxes and increases spending (Ronald Reagan), they finance it through the private sector, so not only is the private sector being paid by the government contracts from the increase in spending, they are also loaning the money to the government to finance the spending.
So they're loaning to the government with interest, so that the government can buy their stuff at profit. It's such a scam. (Military industrial complex)
They basically deliberately keep the government in debt because this is how the rich collect money from everyone: by financing the government.
@@grantmccoy6739 Tax collectors for those who own government debt, like WWII-era Liberty Bonds. The Senator in “Captain America: The First Avenger” was not wrong when he had Rogers fronting bond drive shows to pay for the war.
When many naturals resources are owned by the state, and well as numerous companies... taxes on the people can be low or non-existence. However, as the wealth of the 99% grows taxation can be warranted / justified if the government takes an active role in increasing the 99% wealth, e.g. schooling (general, vocational, academic), roads, infrastructure, investments in start ups, etc. 💡
What now for China? Why are they locking down cities time and time again?..More about shutting their accounts down I think.
Another great Video, thanks.
3:31 It should also be noted that while 60% of locally-collected taxes needs to go to the federal government, they're still responsible and have to fully pay for their social services. This is why they have to borrow so much and use LGFPs.
Time for decentralization?
It's just weird to talk about China as if their numbers are real and it's a real economy. They just magic stuff up and hope it works. How are they borrowing money? You shouldn't be able to borrow money if you're continually losing money. It's all voodoo. It's a house of cards that could come falling down at any time.
Great analysis as always. I believe this is the real reason the Chinese central gov cracked down on fintech so harshly and is pushing the digital yuan so hard. On the income tax side, there is still a strong incentive to keep it low, because the #1 economic problem the country faces is how to transition from a growth model mostly driven by capital investment (real estate, infrastructure, etc.) and export to a model with more domestic demand. On the value added tax side, however, if most of the transactions are done either via cash or via private fintech, then they miss out a lot of internal revenue they want to collect, and as pointed out in the video, they cannot get the level of control over the economy they need.
It is funny that you think they cant control. You do know the CCCP does whatever it wants I am just curious what that will be, grab the popcorn.
@@pedrorequio5515 It’s cute that you think authority alone can get things done. Let’s say you need to rob $100 each from a million people in a month. There is no law against it. In fact, let’s say they are all very bad people and all the good guys want you to rob them. Can you get the robbery done on time on budget?
@@tonglu3699 Oh no they are screwd, but certainly it will give us some entertainment value. I am not saying it works. Millions died of starvation because Mao didnt like some birds. But if you ask the CCP they would say it was a massive success.
@@pedrorequio5515 Actually it is canonized in CCP’s party constitution that Mao’s Great Leap Forward and Cultural Revolution were big mistakes. And the famine was caused by a slew of mismanagement in agriculture, not bird killing, which was my original point - authority means nothing if you don’t have effective organization and processes to channel it.
@@tonglu3699 AS you probably know true authorithy and control comes from great and powerfull institutions. I am not worried about the CCP lack of organization, they have China's best and brightest among its ranks no doubt, they'll figure it out. Money is just fiction, the US also defaulted in 73, they just rebranded it so it looks better.
I love this channel so much! ❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️
Great post my friend.
I see Ireland at #2.
I'd like to visit. 💚
I find it spectacularly ironic that one of the most authoritarian states in the world has very little control over their own economy
The informal economy is so stealthy, it's hard to know it even exists.
Except when they take action against fraudulent business leaders who steal millions from the people. Then they actually kill them. There are more repercussions for being an amoral business in China than in America.
Pretty common, honestly. You can control the economy or the culture but rarely both.
The Chinese government and the Presidental office is constantly surrounded by so many contradicting interest groups that it's hard for Chinese government to remain effective. And besides, the Chinese government chose to give up direct control over its economy for economic growth when it switched to capitalism.
They never had any control to begin with. Can you imagine pissing off 1.4 billion people? They wouldn’t be able to get away with that like with the US government. They’d have enough people against them to start a civil war so everything hinges on keeping their people happy.
EE: piles on China. Also EE: places it 2nd on leaderboard. Love the video as always, thanks! Just wanted to say that low tax % of GDP and a land system based on leasehold are not death sentences. Consider Singapore. Its tax as % GDP has been falling since the mid-'80s to just over 13% in 2021. It has several options for leases approaching expiry, including 'topping up', en-bloc sales, and, of course government acquisition.
I’m pretty sure the CCP government took a lot of inspiration from Singapore!
@@MsEverAfterings It's possible they were both inspired by Henry George and Blackstone with respect to granting decades-long leases instead of freehold.
I enjoy his videos, because it is full of interesting information if you can get past the double speak. "Low taxes are dangerous and we should think they suck" -- 😆 Or... we should realize that our Western countries could be much more successful with less taxation. And look at those awesome videos of success. I find this channel to be very China friendly if you see it as a bit of satire.
Singapore'a case is a very unique and simply will not work the same way for China.
Singapore is the size of a big town at most. Most people live in government provided housing.
Their tax rate may be low, but a lot of their money comes from outside their country as it operates as a relatively liberal financial hub.
The same economy strategy will not work in China. The two places are just too different. The size of the population they need to support is also very different.
The access to labor force is also very different.
@@porcorosso4330 Fair point that Singapore differs greatly to China in many respects. However, there are similarities, namely that landed homeowners and taxpayers have little political power. So resolving the problems of low income tax take and expiring leases, while they aren't harbingers of doom, would face less obstruction.
讲的感觉挺好的，油管上很少有不带意识形态客观分析中国经济的视频，多一些这样真正的经济视频对于中国对于西方都有好处
In the next video cam you talk about Draghi dimission from the Italian government ?
3:00 Economics Explained definitely misunderstands how the United States works. The federal government does not delegate responsibilities to the state governments. It's the other way around. The states created the federal government and set it's powers and responsibilities.
That was how it started, but now the federal government determines whether or not something is under its purview.
Lol, just watched it. He doesn't even mention the US, just says "most countries".
Your comment didn't even deserve my first reply.
@@robgronotte1 That's why I gave the timestamp. We he says that most of your governments use this system he showed a picture of a US state capitol building (not sure which one). It's very likely that most of his viewers are American.
@@robgronotte1 As for whether or not something is under the federal government's purview I still believe that that is up to the states. The federal government is limited to powers enumerated by the Constitution. Yes the Supreme Court interprets the Constitution but they can't arbitrarily grant powers. The court has to work with what is written in the Constitution, a document that was created by and can ultimately only be amended by voters in separate states, not a national vote.
The Constitution can be amended only by a two thirds vote of both the federal Senate and the House (who are representatives of individual states) or by a constitutional convention called for by two thirds of the state legislatures (who represent the same people who selected the national politicians)
@@hans7686 for 200 years the federal government has arbitrarily increased it's area of control, without constitutional amendments, and very rarely has been blocked.
When they have been blocked, it's been by the Supreme Court, also part of the federal government.
What you describe is probably the way the states originally intended, and maybe even what the founding fathers intended, but it's not what ended up happening.
0:28 - 0:47 is decieving. You changed the Y-axis to make China appear way worse off with its tax revenue than it actually is. A proper comparison measures two objects by the same scale. In this case the two objects are China and the US.
The two y-axis scales are almost the same (2.5% vs 2% increments) but the x-axis zoom is different. The ten common years, 2008-2018, show 15% to 18% for the US and 9% to 10.3% for China. Ignore the visual slopes when the zooms differ but the direction still tells us something.
For an in depth video on China's tax system I am wondering why there is zero attention paid to the fact that the majority of taxes collected in China are not from individuals but are from companies that must register and prove every single transaction monthly in conjunction with their accountants, the local tax departments and their banking records. The system simply focuses on collecting VAT and profit taxes from companies and company owners. Any serious investigation to understand how China operates should need to look at and account for this.
Leasehold land sales by the government is a form of land tax, which no one who lives in the country can evade from. Much simpler and effective than corporate tax, personal tax, VAT, while providing the needed fund for growth.
The Chinese government learnt this trick from Hong Kong, which for many years has enabled the Hong kong government to maintain very low tax for their citizens and companies, while still have a lot of fund for infrastructure and social benefits.
There are downsides of this policy, but those are quite well known in this part of the world, and the government is used to find ways to balance them.
There is another huge factor in the Chinese tax situation - a serious contraction in the number of taxpayers, due to declining reproductive rates. This will greatly exacerbate all the factors you detail in this video.
Combine this with a country that, for all of its land mass is still very resource-poor, and has to import 85% of its oil and gas, and that is entirely dependent on globalization for its economy - something that many have taken for granted but may not be guaranteed in the coming years for a number of reasons that we are already starting to see.
Then add in the fact that almost anyone in China who has money is trying to get it out of the country, and into globally-recognized currencies like the U.S. dollar and Euro.
Bottom line - China is far more of a mess, and it's global 'power' far more tenuous, than many in the West have been led to believe.
Thanks for the great video!
I know you've already done a video on the economy of Norway, but could do add a short video on where it sits on the leaderboard?
Best wishes!
Bundling loans up and selling them as investment instruments. Where have I heard that before.
3:22 is Savannah, GA... My hometown.
I can't help but be surprised at how many of China's problems are simply brushed over with little to no comment. Not going to say anything about the record high unemployment? The rise of "let it rot" work ethic? The extreme demographic problems? The man-made natural disasters, such as the extreme flooding happening right now in South China? Not to mention the corruption, the bloated bureaucracy, and tofu dreg projects?
Australian media and government bows to CCP control so it is no wonder that he is not aware of the realities of China.
Stop watching CNN is your only solution
I'm in South China...what flooding?
Also name a government that isn't battling corruption.
It's a bit odd, but the video itself isn't about that. I'm not sure it should rank that high though. It has unbelievable growth, but it's like building the word's largest bridge in under a month with concrete and matchsticks. Super Impressive to be sure, but there are a lot of factors that threaten to destablise that bridge. The far bigger issue with that is, if China's bridge does falter or crumble, it's taking the world down with it-just about every country is intrinsically linked to CHina's economy.
Can’t wait for your video on Rwanda, one of the most exciting economies as of recent
This is actually a good thing. I don’t know about you guys but I like low taxes and low taxes are good for the people. Looks like China is managing to do more for their people on much less. They should be commended.
As he showed, it is funded by mass borrowing, but local governments are allowed to form 'private' companies to get those loans so it doesn't show up as government borrowing, but once real estate stops spiraling up in value then those companies will fold
@@Waywardpaladin borrowing from their own central bank lol. This isn’t a real debt owed to anyone. Same is true for other currencies and central banks. What matters is that they have the world’s most productive industrial base to support those central bank operations where the U.S. does not which is why the Chinese will win and we will lose. They produce, we consume. They build cities for the new century, ours are in a state of decay. Cope harder lib.
I am confused, for a video that was going to talk about Tax issues. It seems most of the topic was on realstate and collaterization and the impact on the economy. No mentions of past or future economic reforms or how to get more people to join the formal economy or if there any direction that people could be trapped into paying taxes because most are using the digital yuan which the government can seize and surveil at any point in time.
In terms of China content, Economics Explained is the cream of the crop that I look up to!
poly matter is also one of my favorites!
He has his bias tho. Not that it's a bad thing but always be aware.
He a commie tho too favorable
@@darrenzou2483 Polymatter is phenomenal. He has videos on nebula that aren't on RUclips.
Try adv podcasts, China uncensored, China insights. You might enjoy them
I have a friend with whom I did law, they are ethnic Chinese, before Hong Kong was handed back to China, they practised law in HK, then we’re appointed a Judge. When HK was handed over, they continued to be a Judge, then resigned in disgust at the blatant public corruption. They then practised as a private lawyer but retired in 3 years and retired to Australia. When talking, the examples of corruption given are mind blowing. The whole “public” service is corrupt, the corporations disregard the law entirely as it suits them.
True. There are tons of favors and hush money going around. In fact, people want these “gov official jobs” just so they can get these benefits.
Years ago "The Economist" reported that Chinese could buy software that kept three sets of books: one for the tax man ("See how little I make!"), another for the banker ("See how much I'm making!") and the real thing.
"China's economy is primed to crumble any time now"
"let's give them 8.2"
How far, wide, slow or fast does it crumble? The key to a strong economy is to survive crisis after crisis.
How fast? Zero fast, Lol, these videos and this China theory has been going around for almost ten years. Go ahead search… for ten years AT LEAST. We kept reading China growing super fast and is on the verge of collapse. Lol. They are not. Nor will they. Fortunately china is not a country as perceived in the west. They are a group of provinces with a strong central dictatorship party, as they have been for thousands of years, China fails and splits up over and over. It will happen again. Good news for China though…. The recent polarization of USA… means we will finally turn into a china.. lol. And maybe split up… if not physically then definitely “economically and politically”.
Glad to see you have a new sponsor lol
This is 100% accurate. This video does point out some flaws in the Chinese system and then rates it as though it is a first rate economy other than the complete house of cards it actually is.
How can you give a ten in industry to a country that doesn’t care about its workers or the environment, and primarily got to where it is by intellectual property theft? How can you give a near perfect score after spending the entire video showing economic problems of titanic size? Very lopsided analysis.
Annual land “lease” fee. Aka property taxes. I mean, you don’t need income taxes if all housing gets taxed…maybe square footage for the math? Or cube footage (meterage?) rather? The richest can show off their huge double story atriums. Lol.
That’d be fairer too, if you can’t afford a place to live you can keep whatever you manage to earn, and if you’ve got mansions in the countryside…well.
That's just land value tax, the fairest tax.
Georgism.
Lol!!I've known for a long time that China would collapse because of tax issues! We India will rise as the king of the world! !😏😏
Due to many rules on taxation and numerous tax codes increasing over time. It would make sense to have a flat tax around 15-30% on revenue from sales, property and other sources of land. The progressive income tax system is not working for most people within the lower and middle class income brackets. Especially if you want to keep most, if not all tax revenue in a single country.
A large number of the high rise residential buildings shown in this particular video are according to a number of sources “Empty”🤷♂️🤔I don’t understand why
"Oh look an Australian Man walking the tight rope!"
"Is he in danger of falling into a canyon or off the bridge?!"
"No! He is exposing the chinese government!"
Heyo EE!
Any chance you’d do a video and ranking of Denmark’s economy? I’m curious where we sit with our rather high tax. Being the second happiest country in the world, 40% tax isn’t too bad
That's just trying to get a good metric out of two bad ones.
Happiness reports are quite flawed, they should either be ignored or taken with a gigantic grain of salt. They basically the the off brand version of HDI.
Fair Taxation: You get what you pay for ... and you pay for what you get.
40% is also about what most middle-income US citizens pay when you add up all the different income, payroll, sales, and property taxes. On top of that is the Federal deficit which is basically a deferred tax bill which is hidden from sight and absent-mindedly not included in totals.
When you earn a minimal wage, you probably are happy. I doubt people who have to give up half of their earnings ot fund the system are happy.
In France ,t's 48% (Highest in the world) ,with Denmark in 2nd place with 46% and Belgium in 3rd with 45% .
And then 65% of the spending of the French governement is public spending ,for comparison the USSR was fluctuating between 52% and 56% during it's existence .
0:26 Those are much different scales, 1930 to 2020, and 2008 to 2018