Income inequality in China--Corruption pays
Wen Jiabao, China’s prime minister, must have felt like he was hit by a political hurricane last week when the New York Times published a front-page story claiming that he and his family control a fortune of at least $2.7 billion.
While it has been generally known that the Communist Party elite were acquiring considerable wealth, that is still an eye-popping amount. All the more so because it is hardly an aberration. As my Council on Foreign Relations colleague Elizabeth Economy notes in a trenchant blog post on the Wen scandal, “the annual 2011 Hurun report on the wealthiest Chinese reveals that the top seventy members of the National People’s Congress are worth a combined total of $89.8 billion; in contrast, the net worth of the top 660 U.S. officials is only $7.5 billion.”
...It is ironic that the NY Times columnist routinely tell us we should emulate China. For people who still claim to be communist the Chinese leadership appear to be real converts to crony capitalism and corruption on a grand scale.