Professor Mark J. Perry's Blog for Economics and Finance
Monday, November 07, 2011
Chairman of China's SWF Lectures Europe on the Accumulated Troubles of Worn-Out Welfare State
At about 12:30 in the interview above with Aljazeera (link here), Jin Liqun, the chairman of China's sovereign wealth fund, gets tough with Europe and criticizes its welfare state:
"If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society. I think the labor laws are outdated. The labor laws induce sloth, indolence, rather than hardworking. The incentive system, is totally out of whack.
Why should, for instance, within the Eurozone, some members' people have to work to 65, even longer, whereas in some other countries they are happily retiring at 55, languishing on the beach? This is unfair. The welfare system is good for any society to reduce the gap, to help those who happen to have disadvantages, to enjoy a good life, but a welfare society should not induce people not to work hard."
HT to Morganovich, who comments in an email: "The world sure has changed. If you had told me 10 years ago that China would be preaching the virtues of capitalism and the pitfalls of a welfare state to Europe (and be right), I would have never believed you."