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A Credit Suisse study suggests that Chinese households are hiding 9.3 trillion yuan of grey income
If China is earning 9.3 trillion yuan of “grey income”, does that mean the country’s economy is 30% bigger than we thought? Not quite. China’s GDP figures do not rely on the NBS household survey, but on “flow-of-funds” data collected from enterprises. And some of the shadow income pocketed by Chinese families may already show up elsewhere in the national accounts, as corporate income or government income—it may be misreported, not unreported. The upshot is that China’s economy was about 10% bigger in 2008, according to Credit Suisse.
Mr Wang also assumes that people lie about how much they earn, but not about how much they spend or eat. Or if a household does underreport its spending, he assumes that it also downplays its food expenses proportionately, so that their Engel’s coefficient is unaffected.
If people underreported their overall spending, but told the truth about their food spending, their Engel’s coefficients will be artificially high. Mr Wang would therefore have paired them with the poorer households in his survey. In those circumstances, their underreported income would go undetected. If that’s the case, then 9.3 trillion may be an underestimate!
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Wang is a prolific business-oriented writer of emerging and disruptive technologies. He is known for insightful articles that combine business and technical analysis that catches the attention of the general public and is also useful for those in the industries. He is the sole author and writer of nextbigfuture.com
, the top online science blog. He is also involved in angel investing and raising funds for breakthrough technology startup companies.
He gave the recent keynote presentation at Monte Jade event with a talk entitled the Future for You. He gave an annual update on molecular nanotechnology at Singularity University on nanotechnology, gave a TEDX talk on energy, and advises USC ASTE 527 (advanced space projects program). He has been interviewed for radio, professional organizations. podcasts and corporate events. He was recently interviewed by the radio program Steel on Steel on satellites and high altitude balloons that will track all movement in many parts of the USA.
He fundraises for various high impact technology companies and has worked in computer technology, insurance, healthcare and with corporate finance.
He has substantial familiarity with a broad range of breakthrough technologies like age reversal and antiaging, quantum computers, artificial intelligence, ocean tech, agtech, nuclear fission, advanced nuclear fission, space propulsion, satellites, imaging, molecular nanotechnology, biotechnology, medicine, blockchain, crypto and many other areas.