Whether in capitalist or communist countries, the rentier class has been able to channel most publicly-generated land and natural resource rent unto itself because the 99.9% doesn’t understand the manner in which the tax regime facilitates this perversion.
In either system the 99.9% is told to be patient as wealth will “trickle down” to them. Meanwhile, we are stupid enough to allow ‘alpha males’ at the top of the tree to do the trickling, whilst those below are expected to be grateful as they are trickled upon.
China’s growth rate is expected to fall from 9.2% to 8.5% in 2012. Underpinning much of its growth has been a property bubble without parallel as 50% of rural people have drifted to China’s cities. Alpha male apes are permitted to seize the bananas in China, too, just as surely as they have been in the west. The poor are left to make do with the skins.
Where is the great difference between capitalism and communism? Freedom for whom?
Unless China captures a far greater part of its land rent to the public purse, it is only a matter of time before she joins the west in this mocking wealth divide that threatens social stability.
What a shocking indictment at the beginning of the 21st century that so few comprehend the distributional mechanism that has delivered this social and financial collapse!