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cover of episode What’s ‘Middle Class’ in the US and China?

What’s ‘Middle Class’ in the US and China?

2025/1/6
logo of podcast The Bridge to China

The Bridge to China

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Beibei
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Jason Smith
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Jason Smith: 美国大部分工人的工资增长跟不上生活成本的增长,导致许多人难以支付账单。 美国存在严重的收入不平等问题,财富主要集中在少数富人手中,而大部分人生活水平难以提高。 美国信用卡债务问题严重,高利息让许多人陷入债务循环,难以摆脱。 美国高等教育费用高昂,导致学生背负巨额债务,影响未来的发展。 美国社会保障体系存在不足,例如无家可归问题严重,许多人难以获得基本的社会保障。 Beibei: 大多数中国人对未来生活持乐观态度,认为中国在国际环境中相对安全。 中国文化中,人们普遍不喜欢负债,更倾向于节俭生活。 中国家庭在经济困难时通常会互相帮助,形成社会保障网络。 中国政府正在努力解决收入不平等问题,并采取措施改善农村地区的医疗保健和教育。 中国教育体系相对公平,高等教育费用相对较低,为人们提供了向上流动的机会。 中国大部分公民拥有住房,无需担心房租或抵押贷款,这为他们的退休生活提供了保障。 Jason Smith: The majority of Americans feel good about their job security, but not their pay. According to Pew Research Center, large majority of workers across all family income levels say their pay hasn't kept up with cost of living increases. 54% say a major reason they are dissatisfied is they don't earn enough to pay their bills. A huge problem right now is credit cards. When a person of no little means has credit card debt, $10,000, $20,000 of credit card debt, it means they're paying 10, 15% interest on that. So every single month, half of their credit card bill that they're paying is just the interest...And this is affecting about half of all Americans to have outstanding credit card debt...The top 1% own about 30% of all wealth in the entire United States...If we redistributed the top 1% wealth among the bottom 50%, basically everyone in the whole United States could be in the middle class. CPI has increased by 180% from 2000 to 2024. The cost of going to college plus fees increased by 280%. Medical care increased over 200%. But weekly earnings only increased about the same as medical care. In the 1980s, America was dominant in the world and American lifestyles were really good. You could have one person in the family working and supporting the entire family. And so I think as China has become more wealthy and they've been able to do a lot more with less, I think Americans are increasingly doing a lot worse than they were before. There's like 700,000 homeless persons. 50% of all real estate equity in the United States belongs to the banks. If you don't pay your property tax every single year, they take it from you. Beibei: In five years? Well, I think if I stay put here in Beijing, in China, yeah, why not? I'm not worried about anything in particular...Things are going to be OK. The survey is called Chinese People's Perspectives on International Security Survey Report 2024...over 70 percent of the respondents believe that China is very secure or relatively secure in the international environment...But most people, like over 76 percent, believe that globally, like internationally speaking, the world is becoming less secure...In general, Chinese people loathe being in debt. They dislike the feeling of owning money...the idea of saving is kind of in Chinese people's blood...when we really need money for something, First, you resort to talking to your family...In rural China, a significant part of the household income still comes from self-produced goods for personal consumption...the significance of external circumstances such as people's birthplace, gender, age, and family conditions, decreased over the course of the study...the results show that it is possible to reduce income disparity based on factors that individuals cannot control through targeted societal measures...By the time you retire, it's almost unthinkable in China for you not to own your home...she's been able to save about $20,000 this year from her own work.

Deep Dive

Key Insights

Why do most Americans feel dissatisfied with their pay according to Pew Research?

54% of Americans say they are dissatisfied with their pay because they do not earn enough to pay their bills, highlighting the struggle to keep up with cost-of-living increases.

How do Chinese citizens perceive global security compared to China's security?

76.78% of Chinese respondents believe China is very secure or relatively secure, while 69.8% feel the world is less secure than it was five years ago, indicating a contrast between domestic and global perceptions of security.

What is the sentiment of Chinese citizens towards the U.S. government and its people?

81.71% of Chinese respondents have a neutral or favorable attitude towards ordinary Americans, while 81.4% express unfavorable views toward the U.S. government, showing a distinction between views on the government and its citizens.

How does income inequality in the U.S. compare between the top 1% and the bottom 50%?

The top 1% of Americans control about 30% of the nation's wealth, while the bottom 50% own only 2%, illustrating severe income inequality in the U.S.

What societal measures has China implemented to reduce income inequality?

China has improved access to healthcare and education in rural areas, removed agricultural land taxes, eliminated fees for compulsory education, and introduced social safety nets like old-age pensions to reduce income disparities.

How does homeownership in China compare to the U.S.?

Most Chinese citizens own their homes outright, often inherited or built on family land, while in the U.S., 50% of real estate equity is owned by banks, and many Americans do not own homes or have mortgages.

What is the impact of credit card debt on Americans?

About half of Americans have outstanding credit card debt, often paying 10-15% interest, which traps them in a cycle of paying mostly interest rather than reducing the principal, making it difficult to escape debt.

How does the Chinese education system contribute to social mobility?

China's education system, including free compulsory education and the highly regulated college entrance exam (Gaokao), allows individuals from lower socioeconomic backgrounds to climb the social ladder based on merit.

What challenges do American students face with college tuition?

College tuition in the U.S. has increased by 280% from 2000 to 2024, leading to $2 trillion in student loan debt, with some students paying up to 7% interest, making it difficult to escape financial burdens.

How does the Chinese government's approach to welfare differ from the U.S.?

The Chinese government actively implements policies to reduce income inequality and improve welfare, such as healthcare, education, and pensions, while the U.S. struggles with homelessness and lack of affordable housing, reflecting differing priorities in social welfare.

Shownotes Transcript

According to Pew Research, Most Americans Feel Good about their Job Security but not their Pay, we take a look from at American Finances from China. Are Chinese workers really better off? We dig deep into the truth on the ground. Hosted on Acast. See acast.com/privacy) for more information.