>China plans to cap the annual salaries of financial workers at around 3 million yuan (US$412,460), as the government doubles down on its campaign to eradicate extravagance and hedonism from the industry and narrow the wealth gap amid a persistent downturn in economic growth, according to people familiar with the matter.
>The limit will be applied to all state-backed brokerages, mutual fund firms and banks, except financial institutions backed by private investors, the sources said, adding that the information is not meant to be made public.
A salary cap?
How about them aprons?
I dont think a salary cap is a horrible idea tbh but not at 500k. Like 50m would be a good limit. You good after 50m.
The wealthy generally avoid paying themselves high salaries if possible as it’s the least efficient way to build net worth. I have a feeling this mostly affects the management class, yet those at the very top will still find other ways around this.
How much would $412,460 in China would be in USA with PPP? If it is about a million dollars or so I dont see any reason for objection. Just because China is doing something doesn’t inherently make it bad.
I kinda sorta like the idea. But reasoning is batshit
Communists of Reddit love that.
It’s not a horrible idea on the surface, but China is doing it so I’m sure it’s fucked in some way. I can’t say how exactly but I know it’s shitty.
They should cap public sector worker salaries. The public sector in China is paid double or triple the private sector. Public sector pensions pay 4-6 times better than regular Social Security (社保). I tell this story all the time: my uncle, a retired government official, gets paid ￥20, 000 a month now. His mother, my grandmother, who worked at a lumber processing company for decades, got paid only ￥5, 000 (as of the month she died, February, 2024). For reference, $1 USD = ￥7.27 CNY. So, my uncle’s pension is $2750 a month while my late grandmother got less than $700, if you want an American perspective on it. This is the reason why, in the public sector, for every job opening, there are 10, 000 people applying.
Just the other day, [Reuters reported that China Construction Bank （中国建设银行）is cutting salaries of their head office employees by at least 10%](https://www.reuters.com/world/china/chinas-ccb-cuts-pay-headquarters-staff-by-least-10-sources-say-2024-07-01/). Employees who work in other branches face even steeper pay cuts. My mother is currently vacationing in China and she says that a lot of bank branches that used to exist decades ago have been closed, and those that have remained open are operating with a skeleton crew, which means long lines for customers. If the large, state-owned banks are in trouble (do you know, that the Industrial and Commercial Bank of China, or 中国工商银行, is the world’s biggest bank?), that means the economic problems in China may be even worse than what we have been told. But then, if a big developer like China Evergrande (中国恒大) can be declared bankrupt, how can we be surprised? This is a country with a total fertility rate that is barely 1.0 (if that), whose citizens cannot invest in foreign markets (as someone who is pretending to be a Chinese citizen, I went on a bank website to exchange Chinese Yuan into Canadian dollars because I live in Canada and am a Canadian citizen in reality. The bank website warns that wiring money to invest in foreign markets is expressly illegal. I acknowledge the declaration and move on). The government encouraged developers to build like there is no tomorrow even though China’s total fertility rate has been below replacement for 32 years and counting (and the population has been decreasing for the past 2 years). So, at this point, if they continue to build, increased supply meets decreased demand and conspire to create the biggest housing market collapse known to humankind to date, probably dwarfing the Japanese collapse of the 1990s.
To the people saying “good:” you do realize that the wealthy couldn’t give two shits about salary, right? The wealthy are wealthy in part because they can demand payment in alternate forms such as investments like stocks. This side steps typical taxes in most countries, but importantly lets them do other weird things to either escape taxes, delay them, or grow the money better than drawing a salary.
I don’t know who this is designed to hurt since I’m not a citizen of China. However, the extravagant hedonism is at the tippy top who don’t even need to worry about this.
If anything, this could be happening to further clamp down on people exfiltrating their earnings outside of China or incentivize people to invest in risky assets since it will be the ONLY way to grow your wealth.
This should be obvious for all my leftist cohort but far too many equate high wages with parasite. The rich are rich because they can make money by NOT WORKING, therefore not drawing salaries. They suck the blood of a company in other ways.
This move ensures there will be more capital left to the company without the pressure to pay ever higher salaries for top talent or nepotistic hires.
If people are going to rally against capital, then they need to understand how the hell capital works in the first place before raging about capitalism proper.
Brain Drain SuperMax – Engage!
Americans get mad when you tell them China has had double digit growth, sometimes year over year during the last 40 years while pulling 800,000,000 out of poverty and into a swelling middle class.
Whats happened in the USA the last 40 years, you’ve banned and reinstated abortion 4 or 5 times? Still aren’t guaranteed a single paid day off. Gun violence and police brutality still out of control, credit card debt, rents, food prices, gas, real estate all time highs.
12 comments
>China plans to cap the annual salaries of financial workers at around 3 million yuan (US$412,460), as the government doubles down on its campaign to eradicate extravagance and hedonism from the industry and narrow the wealth gap amid a persistent downturn in economic growth, according to people familiar with the matter.
>The limit will be applied to all state-backed brokerages, mutual fund firms and banks, except financial institutions backed by private investors, the sources said, adding that the information is not meant to be made public.
A salary cap?
How about them aprons?
I dont think a salary cap is a horrible idea tbh but not at 500k. Like 50m would be a good limit. You good after 50m.
The wealthy generally avoid paying themselves high salaries if possible as it’s the least efficient way to build net worth. I have a feeling this mostly affects the management class, yet those at the very top will still find other ways around this.
How much would $412,460 in China would be in USA with PPP? If it is about a million dollars or so I dont see any reason for objection. Just because China is doing something doesn’t inherently make it bad.
I kinda sorta like the idea. But reasoning is batshit
Communists of Reddit love that.
It’s not a horrible idea on the surface, but China is doing it so I’m sure it’s fucked in some way. I can’t say how exactly but I know it’s shitty.
They should cap public sector worker salaries. The public sector in China is paid double or triple the private sector. Public sector pensions pay 4-6 times better than regular Social Security (社保). I tell this story all the time: my uncle, a retired government official, gets paid ￥20, 000 a month now. His mother, my grandmother, who worked at a lumber processing company for decades, got paid only ￥5, 000 (as of the month she died, February, 2024). For reference, $1 USD = ￥7.27 CNY. So, my uncle’s pension is $2750 a month while my late grandmother got less than $700, if you want an American perspective on it. This is the reason why, in the public sector, for every job opening, there are 10, 000 people applying.
Just the other day, [Reuters reported that China Construction Bank （中国建设银行）is cutting salaries of their head office employees by at least 10%](https://www.reuters.com/world/china/chinas-ccb-cuts-pay-headquarters-staff-by-least-10-sources-say-2024-07-01/). Employees who work in other branches face even steeper pay cuts. My mother is currently vacationing in China and she says that a lot of bank branches that used to exist decades ago have been closed, and those that have remained open are operating with a skeleton crew, which means long lines for customers. If the large, state-owned banks are in trouble (do you know, that the Industrial and Commercial Bank of China, or 中国工商银行, is the world’s biggest bank?), that means the economic problems in China may be even worse than what we have been told. But then, if a big developer like China Evergrande (中国恒大) can be declared bankrupt, how can we be surprised? This is a country with a total fertility rate that is barely 1.0 (if that), whose citizens cannot invest in foreign markets (as someone who is pretending to be a Chinese citizen, I went on a bank website to exchange Chinese Yuan into Canadian dollars because I live in Canada and am a Canadian citizen in reality. The bank website warns that wiring money to invest in foreign markets is expressly illegal. I acknowledge the declaration and move on). The government encouraged developers to build like there is no tomorrow even though China’s total fertility rate has been below replacement for 32 years and counting (and the population has been decreasing for the past 2 years). So, at this point, if they continue to build, increased supply meets decreased demand and conspire to create the biggest housing market collapse known to humankind to date, probably dwarfing the Japanese collapse of the 1990s.
To the people saying “good:” you do realize that the wealthy couldn’t give two shits about salary, right? The wealthy are wealthy in part because they can demand payment in alternate forms such as investments like stocks. This side steps typical taxes in most countries, but importantly lets them do other weird things to either escape taxes, delay them, or grow the money better than drawing a salary.
I don’t know who this is designed to hurt since I’m not a citizen of China. However, the extravagant hedonism is at the tippy top who don’t even need to worry about this.
If anything, this could be happening to further clamp down on people exfiltrating their earnings outside of China or incentivize people to invest in risky assets since it will be the ONLY way to grow your wealth.
This should be obvious for all my leftist cohort but far too many equate high wages with parasite. The rich are rich because they can make money by NOT WORKING, therefore not drawing salaries. They suck the blood of a company in other ways.
This move ensures there will be more capital left to the company without the pressure to pay ever higher salaries for top talent or nepotistic hires.
If people are going to rally against capital, then they need to understand how the hell capital works in the first place before raging about capitalism proper.
Brain Drain SuperMax – Engage!
Americans get mad when you tell them China has had double digit growth, sometimes year over year during the last 40 years while pulling 800,000,000 out of poverty and into a swelling middle class.
Whats happened in the USA the last 40 years, you’ve banned and reinstated abortion 4 or 5 times? Still aren’t guaranteed a single paid day off. Gun violence and police brutality still out of control, credit card debt, rents, food prices, gas, real estate all time highs.
American exceptionalism.