Saturday, March 2, 2013

Pensions: Public Good or Spoils?

Seven children living in a home for the disabled dead because the home was to cheap, or inadequately funded, to provide proper heating.

Meanwhile, retired government officials get 4,000 RMB a month in pensions without ever having to make a contribution in their life.

During the last few weeks of Spring Festival I began wondering about pensions: are they public goods or just a way of paying off China's selectorate?

Looking at how local governments manage pension schemes, I feel officials see the money pouring into the system is theirs for the taking. Just look at how pensions have been treated in America.

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