Clarifying the three stages of Distribution of Wealth in China.
Stage 1: Let Market Force determine the distribution of wealth. This means some will get much richer than others. In a free capitalist economy, there will be entrepreneurs who can spot opportunities and act. These include the many Internet Giants and Property Developers. China calls it – “let some get rich first.”
Stage 2: Government takes action to try to narrow the gap between the rich and poor. This means tax the rich more and spend more on social services. Care must be taken so that the enterprising spirit of the entrepreneurs is not destroyed. China prints money to do infrastructures including roads, bridges, hospitals, schools and retirement homes. Much of the money will go to the construction and social workers.
Stage 3: Let the Rich help the Poor via Charity and Donations. Encourage the spirit of getting rich together. This is easier when the society has moved into the “Surplus Economy”. In the internet World, the Internet Giants can dominate with their knowledge and control of Big Data and Payment Systems. Tencent took the lead with donations of 50 billion RMBs and sharing of opportunities.
China hopes to develop the mindset of Stage 3 more. 共富 is better than 獨富. That applies to Nations also. Capital and technology are no longer scarce resources. China can help Afghanistan rich with the Super One-Belt-One-Road Initiative. (No debt, currency exchange deals).