Two cash flows to support the middle class family

Recently, the “middle class” has once again become one of the hot search terms. The word first appeared in Aristotle’s “Politics” and later became the concept of economics. Aristotle said that the city-state economy will inevitably have two classes of rich and extremely poor. The richest people will inevitably be dictatorial, and the extremely poor will inevitably be turbulent. Only the middle class will have a moderate attitude. They will neither It is a stabilizer for the city-state economy to hate the rich and not to be hated by the poor.

Today, 51% of the world’s population lives in cities and controls more than 90% of global wealth. Unexplained people are alarmist, always exclaiming that the middle class will be “bankrupt”. In fact, everyone in the middle class may be eliminated, but the middle class is always there, and it is an eternal group in the urban economy.

People are accustomed to describing the middle class as a majority of the population. Many people also accept an unconfirmed hypothesis: “Two small, medium middle”, the middle class is like a football, and it plays a decisive role. However, the real urban economy is not the case, and the number of middle class groups depends on the statistical criteria chosen by people.

The research by an authoritative organization proves that the middle class has reached 400 million people in China, mainly based on salary; I think the middle class accounts for about 20% of urban households, mainly based on assets; others choose various statistical indicators to obtain Different conclusions, but do not support the hypothesis that the middle class is the majority of the population. From the perspective of urban population, the number of middle-class people with different statistical calibers ranges from 100 million to 400 million.

The McKinsey Research Institute believes that the middle class in China is a population of between $13,500 and $53,900, with a population of about 100 million. The Boston Consulting 2010 report is based on a monthly income of 5,000 yuan (about 800 US dollars) and is expected to exceed 400 million in 2020. In 2016, the “middle-income group” reported by the Chinese Academy of Social Sciences has an annual income of 170,000 to 250,000 yuan, plus three other indicators that are said to be important, but the group that can simultaneously meet the four indicators only accounts for China’s age. 4.1% of the population! This comic brings a buzz, the most popular ridicule is: you are not even a middle class, but also talk about anxiety!

Returning to the logic of Aristotle, the social groups are divided into three categories, the rich, the middle class, and the poor. If calculated by the proportion of the population, it must be that there are many poor people, few rich people, and the middle class is in the middle. The contribution of economics is to “quantify” income, so there are two quantifiable cash flows, one for compensation and the other for assets. The rich are the income earners, the salary income is negligible; the poor are the payers, the asset income is negligible, and there is a middle class standard between the two: two cash flows.

The successful path of Chinese culture is “cultivating the body and ruling the country to rule the world”, referred to as Xiu Qiping. If the “repair” and “rule” are separated, the function of the middle class as a social stabilizer lies in its focus on self-cultivation. The number of countries with the largest number of 100-year-old stores in global corporate statistics is Japan, with more than 22,000 companies and more than 11 million registered companies. The total population of Japan is 127 million, and there are more than 10 companies. The total number of employees in these 100-year-old stores is less than the 20 large companies in Japan.

The Japanese tax system is open to these “self-employed” networks, and the GDP statistics are not too serious. In fact, every small business that has nothing to do with it is a middle-class family: a wealthy family, not as good as a “bad shop”! The core population of the middle class is these full-time or part-time small businessmen who open the store when they see the opportunity, and close the store if the business is not good. Just as I said in the article “Dragmentation of the gap between the rich and the poor”, the fragmentation time opens the gap in life.

In the era of big data, there are two cores of the new economy: one is “users create value”; the other is “platform link users”. This epoch-making change is roaring like a wind and cloud, and the most adaptable group is the middle class. When people are still discussing “Internet +?”, the online and offline integrated micro-shop “suddenly blooms overnight” fills up the fragmentation space of the shopping center.

Once it is a middle class, two cash flows. Occupational income comes from working hours, and asset income comes from fragmentation time. Numerous “bad shops” are inconspicuous, but they are silent, such as springing up, awakening the middle class to seek new and pragmatic entrepreneurship and investment, and the rise of the middle class will become a stabilizer for China’s economic development.