Wednesday, June 3, 2015

If you do not work, you do not eat

China does not have a good tool for measuring unemployment. It is not required in the communist days as everyone had a job and was paid the same. However, I estimate they have one below 5%. The incentive is simple: If you do not work, you do not eat.

As a contrast, we have generous welfare. The incentive of not working is simple: If you work, we take away your free health care...

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