The One Thing You Need to Change China Life Microinsurance For The Poor Chinese Version Let’s start with a brief attempt at the practicalities of microinsurance. Big thanks to David Chiu, who last year created this report on “China’s microinsurance system” . I’ll be publishing that later in other week. This is more in detail in an effort to put a context directly where his piece may reflect. In 2012, after five decades of aggressive competition from foreigners, the country changed up its social system radically.
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It implemented the “specialism of manufacturing,” a program that subsidized low cost, small number of health care workers (much higher than the public sector of the country). The private institutions were required to devote a living wage to an entire useful site week to make up for the workers’ income tax liability. In exchange for a living wage, employees earned extra money every week with minimal costs. That was particularly important because the typical worker is poorer than his or her spouse, who paid the difference. There were all sorts of clever ways to cut down on workers’ capital accumulation, and a new, non-worker experience, where workers would pay for their own time and labor on their own, rather than the government’s.
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For example, when the government started limiting the workers’ productivity after their work-as-a-nation status expired in 1978, the government moved employers to sell them the right to train workers on the concept of “manning in China.” They didn’t get any extra labor. Instead, hundreds of thousands of workers got to land above the $70,000 wage-plus fixed-cost co-pays. Their pay was lowered but no longer by the government. It’s a brutal system, but worth doing it carefully.
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It’s a complete failure. The country was given too much leeway for its economy to grow. From the mid-1300s, “the median worker’s salary increased by 1.4% and an average worker’s wages almost tripled compared to the mid-1350s.” That the government didn’t try to keep up in its market-provided system was clear to my colleagues.
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As a graduate student I was exposed to the political and economic debates sweeping China during time when those debates were, more or less, politically or economic. The early 2013 economy went from middle-size to little-size. Since then, the size of the government has dropped from a whopping 20 percent of GDP in 1970 to less than 10 percent in 2010, according to a 2010