Is China right to pursue an olive-shaped society?

The question is, what is an olive-shaped society? An olive-shaped society means that the social population is like an olive, with small ends at both ends and a large middle. That is, there are relatively few wealthy people and poor people. The middle-class people in the middle account for the majority of the population in a country, which is the ideal goal. Are olive-shaped societies without flaws? In the first half of 2009, the author reviewed the trend of luxury goods in the United States and proposed that the high-end consumer market collapsed and the central market expanded, resulting in better sales of mid-range products. As a result, luxury brands such as Adidas are now facing recession. On the contrary, the sales of mid-range products such as fast fashion brands have skyrocketed. As a result, the richest man in a fast fashion brand is richer than the boss of the luxury LV Group. Facts have proved that the author's prediction is correct. However, now the author has begun a new prediction - the olive-shaped society is flawed. What are the flaws of an olive-shaped society? The author believes that when the economy is booming, the income of the poor rises relatively little, while the income of the middle class rises faster. When the economy is in recession, the middle class faces the fate of being laid off because they are the middle and high-end people in enterprises and companies. From a foreign perspective, senior corporate management officials such as general managers are prioritized for layoffs. Why? Because their remuneration is relatively high, corporate shareholders have no choice but to lay off senior executives in order to reduce losses when they are unable to do anything. For example, the financial crisis in the United States in 2008 resulted in large-scale layoffs in the European and American financial industries and large-scale layoffs in the luxury goods industry. In addition, during economic depression, the state subsidizes the poor but not the middle class. It is obvious that the middle class has become the sandwich plank, unable to enjoy state subsidies and bearing the brunt of the economic downturn. In addition, the influx of a large number of immigrants raises the cost of living in the city and reduces the expenses of the middle class. When a large number of immigrants come in, local government financial support increases and taxes are targeted at the middle class, which also reduces the wealth of the middle class. Therefore, when mainland China goes shopping in Hong Kong, it causes price increases and shortages of goods in Hong Kong, which affects the quality of life and inconveniences of Hong Kong residents. Therefore, Hong Kong residents scream. The same thing happened in Singapore. Singapore originally wanted to introduce international talents through preferential treatment, promote talent rejuvenation, and attract international investment. However, with the arrival of immigrants, a large number of people rent and buy houses, and a large amount of daily consumer goods are used, which leads to an increase in rents and prices of daily consumer goods, while the wages of the middle class have stagnated. The result is that the middle class has complaints. Obviously, the olive-shaped society is unstable. The United States is a society dominated by the middle class. However, the income of the middle class has not increased in the past ten years. The result is the "American Spring" or "Occupy Wall Street". To sum up, the author believes that China cannot pursue a middle-class olive-shaped society as the ultimate goal, because if one group has no income for a long time and social welfare benefits increase, while the income of other classes rises and social benefits increase, it will cause Psychosocial imbalance. Therefore, the best way is to constantly pay attention to and improve the classes whose income has not increased for a long time, and to constantly pay attention and improve the groups with low incomes. How to handle this kind of speed regulation is what a country should consider. From China's perspective, the key is to vigorously increase the income of the poor for a long time, because the income polarization between the rich and the poor is growing, which is the main feature of Chinese society. Therefore, a moderate decline in housing prices and a rapid increase in the income and social security of the poor have become the key. Obviously, from the perspective of developing countries, the pursuit of an olive-shaped society seems to be correct. As a result, domestic support for an olive-shaped society is overwhelming. From the perspective of rich countries, pursuing an olive-shaped society is not the ultimate goal, but this does not deny China's improvement. The poor move into the middle class.