Social security, or community cafeterias? Medicare, or family care? US and China systems compared
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- Опубліковано 26 вер 2024
- Social Security and Medicare are on a trajectory to eventually bankrupt the United States, yet political realities make changing the benefits in a meaningful way almost impossible legislatively. Europe's financial future is similarly dire, with their cradle-to-grave entitlement systems even more generous than America's. It's commonly known that it cannot possibly continue for much longer, and our younger people are fully aware that these generous programs won't be around for them to enjoy.
China never considered adopting a US-style retirement and medical care system for its retirees. Even as their economy boomed and trading surpluses and reserves piled up, they did not set up a generous pension system for their retirees, as many observers expected. Instead, they fashioned a family- and local-community-centered system of elder care, at about one eighth the per-person cost.
Few developing countries will get wealthy enough quickly enough to build sustainable welfare and entitlement systems that are common in North America and Western Europe. Plus, to do so would go against centuries of culture and tradition, which still holds that children are primarily responsible to provide the needed care and support for their elderly parents.
The ballooning costs of Western entitlement systems are serving as a warning to up-and-coming countries, who will be themselves facing waves of retirees, with difficult decisions ahead as to how best to provide for them.
Over a trillion a year devoted to destructions, but no money for people who need shelter and food in the States
Remember that these retirees were once the contributors and the pillars of the country’s economic system!
That’s a feature, not a bug.
8 trillions in wars with interest
Pure evil
As a 4th generation overseas Chinese & the only son of 5 siblings, I took care of my parents' wellbeing during their entire old age as they also stayed with me. Both passed away at 75. This sense of responsibility / obligation has been instilled in me since I was young. I also instilled such values in my childrens & they will continue with this Chinese's tradition for sure.
There's not so much taught today in the US about being filial. My sister and I cared for our elderly mother until she was 90, my father had died suddenly 20 years earlier. I lived that example for my own kids, but at age 70 I don't yet know how well it took.
You are so fortunate to be able to do your filial duty!
Many people simply don't have the financial or emotional ability to take care of their elderlies, which is not an easy job at all.
Are you Chinese Malaysian by any chance?
@@mysterion4301I hope for the best for you, but most American born Chinese don't think like Chinese at all. Especially if they're second or more generation
Your story tells how broken the Chinese policy is. You had 5 among you to both chip in and also have at least one bigger success who can shoulder weight of parents. Such families were common when these cultural traditions were created. Now, things are very different. The birthrate in China was decimated by one-child policy and even now overwork and high costs of living (despite amazing economic growth) lead to birthrate of less than 1 child per woman! So if average couple get married they are supposed to raise a family with high costs and also support 4 grandparents! Think about their situation. This is a ticking time bomb.
@@kavabeanDid you even watch the video? That's why the government helps out by providing cheap food and day care.
Its not easy getting old and losing the ability to look after yourself. That said, China has a much more humane and sustainable way to look after the elderly. Thanks for sharing Kevin
I am a Chinese person that lives in the US, I am the eldest son in my family, so I have to take care of my parents. My siblings are pitching in some money to help.
And also your mother will have issues with your wife.
@@peanut0brain I am divorced.
@@peanut0brainI get that a lot. Parent is OK. The sisters not all are the problem.
@@peanut0brain. They do. Nobody is good enough for their sons. 😊
You get all of the inheritance from your parents as eldest son while your sisters get nothing. In reality they shouldn’t even need to pitch in anything as they won’t be getting the inheritance either.
I've seen many vlogs from China of how the elderly in rural community gets by. They get their low retiree pension at 50 but they are still healthy and want to be active. They farm their own parcel of land. They take daily the train or bus (at very low fare for them). They go to the nearest bigger city where they sell their products in opren air markets. And they come back home with enough money to pay for a confortable lifestyle. Open air markets are everywhere in every cities. There are accomodations for carrying their large bags in all the rural trains and buses. They stop way above 70 yo when they don't have the capacity and they are proud to be contributing to their community.
Yes absolutely truth ❤
Those old Chinese farm folks. They may not be highly educated, but they're truly the salt of the earth type of people like all farming folks around the world. Unpretentious, honest, friendly, and generous. I have made many acquaitances among them.
I live in Canada. I take care of my 94 years old mother who lives with us.
It is an honor and smart to take care of your parents, continue to receive the blessings of their wisdom and love. 👍☺
I'm just not even 5 min into this episode already I know what he said is not true. I moved out of China decades ago so I can't tell you exactly how the system works. As far as I know for my parents generation they still get paid as they work after they retired and get raises as other working people. My Dad got about 8000rmb per month before he passed away and my mom got about 5000 rmb before she passed away. The government insurance paid almost all medical costs which is why I never moved them to united states. They don't need the kids to take care of them but a lot of them subside their kids which in Chinese called kenlao which laterally means "kids eat the old " most of the retirees in China can easily save more than half of their incomes even a janitor. For my generation a lot of them already retired young. There is no property tax to haunt them and they can easily afford a simple life which is quite different from USA where lot of people can not even afford rent with their retirement.
I went back to see my mom last time when she was in hospital, totally about a month in er and three weeks impatient with all kind of treatment and medication. I paid the out pocket for her which is about $600. Ironically when I came back to the state I went to the er for about 5 hours and they billed me for about $600. You can't compare.
@@519stream3compared with Kevin you are the negative side of the equation, so you must have prepared yourself for that!
Chinese culture is the young look after the old.
YUP! We Chinese respect, care, worship & love our Elders. It’s our way of thinking, practice & Life. We don’t believe in letting our Elders go when they are older. They gave us Life and it’s our duty to care for our Elders when they are older or in their Golden Years.
BLESS MOTHERLAND, CHINA 10,000 YEARS & TEAM MOTHERLAND, CHINA ALL THE WAY AND BEYOND FOREVER!👍🙏🇨🇳🙂🐲🐼☯️☮️🌏‼️
I am a retiree. I bought my house 40 years ago and my property tax at that time was $700 per year. I paid off my mortgage quite a few years ago so I don’t owe anything on the house. Today, my property tax is $15,000 a year. The annual property assessment done by the city increases the value of my property tax. I have to pay out over $1,000 a month for the right to live in my home that I maintained for 40 years. I hear that in China, there’s no property taxes. So once you paid off your house, you have no more expenses. You do not own the land and you have to pay $4,000 to renew the land lease every 70 or 90 years. So if I pass my house to my son or daughter, they can renew the lease for $4,000 for another 70 or 90 years depending on where you are. Property rights are transferable so if I sell my house to someone else, they have the lease for 70 years. I am a senior on fixed pension and while I can afford to pay the property taxes, I still find it onerous and if it continues to rise, I will have to sell my house.
15000! That's just criminal and obscene ... I live in a public flat in singapore and my annual property tax is approx 100.
I'm sorry to hear this. It's is awful. That is why PPP (Purchasing Price Parities) purchasing power is so important. I see more and more western coming to live in Malaya and Borneo now.
What you said about the Chinese don't have tax on the property is true. However if someone owns a condo unit, usually the unit would not last more than 50 years, before it is run down and become very low in value. What you said about passing it to the next generation would have to be in more rural areas with detached houses.
@@Mariobrownio1989 50yrs life span? And you know that for a fact. Chinese building are well maintain. 😁😂..
Corrupted government in US and Canada, As the public doesn't know where the tax dollars are spent, Auditing is even impossible given every four year election routine. as Nobody takes the responsibility about the tax dollars, it is easy money taken from the public.
I appreciate your efforts in bringing to the UA-cam world a different perspective on how to deal with the question of aging. With the US carrying $34 trillion of debt and climbing, it is a real concern as to how long the US can keep on printing money like that to support all kinds of programs, and that the world would keep on absorbing the dollar. For now, the world has been trapped by the monetary system set up by the US and nobody knows how to free themselves from the US dollar system. So, business goes on as usual and the US government keeps kicking the can down the road...
❤❤Kevin, thanks for another well researched episode. Very educational. Please keep these coming. 🌹🌹🙏🙏🙏
Sir, what you mentioned is true! Traditions! Confucianism!!
I'm a 3rd gen. oversea Chinese in an ASEAN country (my grandpa immigrated just before ww2).
exactly what you said, we take care of our elders!! never in our mind to put our parents in a nursing home. To be fair, you see this in sooooo many parts of asia! different nationality! that's why you see very few nursing homes in this part if the world!!
thank you very much for your videos! 👍 more power!
I'm the 3rd generation over sea also and my parents live with me to the last day of their lives
This guy makes great videos that make a lot of sense.
Ya. I started following him a while back. He is amazing. His script is clear and concise. 😊
Absolutely truthful! Kevin is one that is amazing in all of his publications!
That is why China don't have any homeless people compared to America have homeless people.
True but many homeless people in America are not old. They are in abject poverty.
I learn a lot from your presentations. Thanks
This is very common in most Asian countries too. It's their rich culture. Its the responsibility of children to take care of their parents. That's what most religions advocate in that part of the world. Children also see it as their responsibility. Rich family values. Most situations grand parents spend time with their grand children and take care of them too...thus handing over traditions to them from their younger age.
This is your best work I have watched so far, informative! Be good!
FANTASTIC REPORTING !! Pay attention sleepy Americans !!!
Nppe, ameriKKKans should be ignorant
Confucianism Philosophy At Work..
Thanks for addressing this fundamental social topic. We westerners would be wise to consider how other cultures manage their demographic, social and economic issues. It might be helpful and certainly it would be more productive than automatically assuming that our culture systems are superior. Our general arrogance and inclination to demonize others and their “ways” is self-destructive and ironically tragic. It is a shame that we can’t even acknowledge that Chinese people, for example, are addressing poverty, social wellbeing with a lot of success. I find it admirable that Chinese value their elderly parents enough to be responsible for their care, although I’m sure this is not palatable or convenient for every Chinese family. It seems much more civilized than the general western social attitude towards our families. That is not to say no one in the west behave with similar respect and responsibility for our family members, however, our culture and formal social structures are more concerned with commercializing our cultures than sincerely addressing general wellbeing.
Another informative session. Thanks Kevin.
What can I say? Kevin is a friggin' genius regarding the subjects he covers in life, living, business, markets, manufacturing, governance--I could just go on and on. Does anyone know if we have someone similar in the US?
Sir I just stumbled across one of your videos a few days ago and now it’s the main channel I watch daily, at least a couple of videos a day. I like your take on things. But mostly your humility, respect, truthfulness and this aura about you.
Keep up the good work!🙏🏽
From South Africa.
Great perspective, both systems got pro and cons
Thank you Kevin. Be good 💯
A great insight!
🇺🇸 in the USA .. we throw our elders in the streets to be homeless! We do that for young people.
I mean look at what the Boomers did to their OWN KIND let alone for society as a whole ...
It is never a question “if” or “should” we take care of our parents, it is given! As nature as breathing air. Yes, it might not be easy managing two generations at once, parents and kids. It is the RIGHT thing to do, no need for debates. In the West, some of us like to kick our kids out of the house at 18, the consequence is they will stick these parents in the nursing home the minute they can.
This is not only Chinese culture all the rest of the world does that except North America & Western Europe. It is a cultural issue where in /North America & Western Europe they discard people when they are no longer productive.
Thanks a lot for this video! I am a baby boomer. Taking care of retiring generation is a big issue. Thanks!!
China is beginning to have elderly homes in China, run by private insurance companies for the wealthy. To get into one of these elderly homes, the minimum is about USD270k. I've visited one of these and my gosh it's like a 5 star resort! This is good as it frees up resources for the government to take care of elderly population that really needs help
The total cost of the war in Afghanistan for the US is estimated to be around $2.26 trillion from 2001 to 2020. Just one aspect of the costs of US Empire and militarism.
Yes. Yet we don't have $ working people paid into for retirement years...
Great sharing!
Filial piety is the virtue of exhibiting love and respect for one's parents, elders, and ancestors, particularly within the context of Confucian, Chinese Buddhist, and Daoist ethics.
Well wait a minute.. how is it that the US does not have enough for retirees, but has plenty to give to Ukraine and to maintain 800+ military bases around the world?? Retirement funds are not like welfare, it's something people who have worked hard their whole lives have saved up.
Africans don't need to copy it. It's part of our culture too. The family takes care of the elderly. We don't have the restaurants you describe but elderly care is family based.
Social Security can easily be fixed by removing the earnings cap on FICA contributions and increasing the FICA tax by 1%. that is literally all that it takes.
Filial piety to one’s parents is a must in our family. We took care of our parents when they were old until our dad passed away at the age of 76 and our mom at 93.
Kevin, this is the Confucius culture and philosophy that is embedded in Chinese society.
I’m not sure if this all over China. But at least in some regions they have something like Kindergarten for seniors. The children drop them off before going to work. There they get meals and play with other seniors or go on field trips. They can also opt for a bath by the staff before being picked up by their children after work. I believe the level of service is a la carte. I thought this is a wonderful system.
Many countries have sustainable systems although they dont look anywhere like western systems where greed is the driving force.
One middle aged man can’t sustain 6 people (2 parents, 4 grandparents). The one child policy is disastrous.
And a lot of people put their savings in real estate that’s garbage.
Interesting. My parents who live in Shanghai is more than able to live on their pension income. They are just normal factory workers previously
Yes, social security is the highest expenditure on the United States government that’s the fact. What about its Military spending?
Thanks for your useful and insightfull content I look forward to your episodes
the CCP runs china like one big family and that, imho, is how a country should be run - this is also very much in line with confucius teaching which stipulates that filial piety and respect for the elders are paramount virtues - sadly, this not gonna happen in the hyper-individualist, everyone for him/herself west where children are encourages to call their parents by names and treat them like "friends" - in china and very much east asia [me not sure about other places] in general, this family bond is what keeps the social fabric intact and thats a very good thing ...
China, for most of its time in the past thousands of years, runs like a big family, even with emperors on the top. It is one unique political culture, a mix outcome of Confucian, Daoism, Chinese traditional culture.
CPC
Can they imagine one day America would do that? Hell no 😂
Kevin China does have pension and retirement benefits now even for rural people who never worked in office. It’s low amount for the however their healthcare cost are very very cheap.
Great observations.. I guess this is a historical model since eons..
This is really interesting and thought provoking. Thanks!
All our facilities for seniors are for profits.
In the US our employer and individuals pay into Social Security. The money is then confiscated and used to fund a runaway spending addiction our Government has. As an individual you receive no return on your money. I believe it won’t be out of line to say social Security is managed by a bunch of drunk sailors. It would take a book to talk about all the way Social Security is mismanaged. Now that the government has taken and spent Social Security in the general budget. We now call it a social program and maybe you shouldn’t get that money back. I frankly think that people should be able to invest the monies your employer, and you personally have put into the system. We should not allow the government to make the decisions we should be making. I have no doubt Social Security will go the way of our economy. Bankrupt.
You have misrepresented the Social Security system. The employee and the employer pay into the Social Security system. The SSI and Medicare payments in your paycheck are called payroll taxes. They are separate from the income taxes and are not part of the discretionary budget that Congress passes each year. The Social Security administration does a yearly report to Congress of the status of the system. They do a very responsible job of reporting and projecting the status of the system. They increased withholding amounts when it was projected that the baby boomers would make the system fall short. At that time the Social Security Trust fund was running a surplus to bank money for the eventual baby boom retirement. That was when the Johnson administration decided to include the SS surplus in the deficit calculations so the surplus would offset the debt amount. The status of the Social Security system and the huge deficit caused by a runaway defense budget are completely separate things. The SS administration is now telling us the system needs another adjustment due to the changing demographics of reduced population growth. The simplest fix is to raise the cutoff limit of the pay in ceiling amount. The system is stable and workable, the high earners just don't want to pay a fair share. Share holder capitalism, more correctly called exploit-ism, can't stand not being able to get their hands on that large chunk of money being extracted in those payroll taxes.
@@mikeschroer7829 Just to clarify, the "employer contribution" for Medicare and SS, are monies that the employer covers with smaller pay increases, less employee benefits and increased cost of services or goods to their customers. It is just another cost of doing business in America and as such, is paid for with the accounts receivables.
State malfeasance, corruption and incompetence, offer an over simplified reason why these programs (Medicare and SSI) are not viable.
@@dc-wp8oc I agree with your argument that businesses just treat their contribution to Medicare and SSI as just the costs of doing business. You could extend that argument to corporate taxes. Too extend the argument even further, why should corporations even exist, everything falls back to the individual that has to purchase goods and services to exist. I don't see a problem with a system where people pay into a universal retirement and health care system. If State malfeasance, corruption and incompetence exists it can and should be corrected. Let's not throw accusations around, let's make a system that works for everybody.
Thank you for your informative content
Excellent food for thought !
I love that the expectation is that the elderly will remain with family their entire lives. That is what family is all about.
But - serious question - how does the history of the 1 child policy play into this? This is the first ever Chinese generation where a small number of young people have to care for a large number of elderly. Previously, when couples had many children, the financial and psychological burden of caring for the elderly (which can be incredibly difficult for many reasons that are no fault of the elderly) could be spread across many children.
Many Chinese couples must have 4 elderly parents to take care of right now, while also caring for their own children. That can’t be easy.
My elderly mother has 5 kids to help her. She will never be in a nursing home.
Really appreciate the host for showing the western world that you need to respect there are different ways to tackle everything! Respect that different conditions and cultures give rise to different solutions - that appear strange or unfamiliar to westerners. but trith be told, every system has good and bad and on balence, China does plenty of good for its socoety so differences seem to work very well for them. lets stop the hate and start the respect for differences…and learn and adapt and win win.
Yes.
Excellent point of view. Much appreciated.
Great video... planned to retire in china . Seen to better as a elderly in china
thoughtful, touching and honourably respectful. Superb.
supercalifragilisticexpialidocious
china has a national retirement fund system (similar to social security systems ) now.
Kevin needs to ask around
Depending on children at old age is partially true nowadays. Chinese differ from the westerners in not living in credit but in surplus. Nowadays many old people in China are wealthier than their children because their life time savings which is not universal in the west.
China does not operate a big social security system like the west. This culture enables/forces everyone to look after himself/herself up to their old ages.
Robotics and AI will help too.
That agrees well with Robert Reich's warning about the power of the elderly votes.
If they want to keep this policy, they better increase the birth rate. When these cultural traditions were created families were much bigger with many children. Siblings could chip in and good chance to have at least one decently successful child who can shoulder weight of parents. Now, things are very different. The birthrate in China was decimated by the one-child policy, and even now, overwork and high costs of living (despite amazing economic growth) lead to a birthrate of less than 1 child per woman! So if the average couple get married, they are supposed to raise a family with high costs and also support 4 grandparents! Think about their situation. This is a ticking time bomb.
In reality, especially rural China, sisters often raise extra children of other sisters as their own during the 1 child policy. Which is why many chinese families are still large.
Thanks for your efficiency in extracting the facts 😊🇸🇬
This is where the one-child policy bites. Depending on the age and health of the parents that child may have to give up their job making it much more difficult.
You'll never change the western culture to look after parents willingly, too much selfishness on all sides not to mention young people not having children at all.
This model is more viable where population density is high. In western cities one can’t move without driving a car then…
As a chinese elderly i rather die than live in nursing homes
Thank you me also 💯
As an elder from USA (but not living there) I intend to stay free of nursing home.
Me too in Florida. Get out and exercise every day.
By right all children should take care of their parents when they are old and need to be cared for. One of the ten commandments of God is "thou shall honour your parents". And there is no better way of honouring your parents than to care for them when they are old and need the care.
USA blames China for this too
Thank you, an eye opener.
It costs much more in the West because the care is expected to make money. Snowbirds are those who can be afford to each in restaurants, and we know how much such cost has been increasing rapidly. Maybe we should call this a demographic "problem," and treat it that way, but to embrace it like the Chinese currently do.
Sustainable and compassion
No such a thing in America
You cope and or you die
It is Asian culture that siblings takes care of thei parent’s old age.
Can I ask for a video about current health issues in China… are they more meat eating, how are cardiovascular disease and there forecasts, diabetes etc.. does pharma gouge the citizens as they do in USA?
Reality speaks different ly now in urban China, due to higher mobility in job location, higher cost of living, young families work in places far away from parents and they have financial problems for their young families members. If the old parents in critical illness with high medical bills, they all will bankrupt. This is reality not an issue of filial piety or not.
I envision a model where a meltdown of retail consumerism leaves a massive amount of commercial space - shopping malls, strip malls and the like - empty. Ideal locations, level entry and climate controlled. The elderly can walk or take a bus there, and they can eat and visit somewhere safe. Kind of like those small-town general stores where the old boys would sit by the wood stove and play checkers.
One thing I'm quite certain of - most of Gen X and younger won't be spending their winters in Florida or Arizone. That whole paradigm was a one-and-done.
⚠️ Florida real estate is crashing. Property insurance increases by 1000%!
Your sound was ok for the last few videos.
Great content man. Thanks, I had no clue. I can’t even afford a house or kids, but I see wealthy boomers with a massive suburban or country estate, which they live in empty all to themselves, telling us to pull ourselves up by our bootstraps. People say its mean to throw elderly into nursing homes and the abuse is so bad, but the elderly abuse the staff when they still have their faculties. All at the steep discount if $10k/month. The government foots the bill after the nursing home takes all the elderly’s assets.
Not to mention where does a population of over a billion people get their food? Importing food is not a solution.
The developed world threw open their doors to the most culturally incompatible, cost ineffective personnel and provided instant benefits. Any wonder there's nothing left for the retirees?
Canada's solution was MAID.
I have watched two of your videos. Both reveal you to be an erudite person. Thank you.
The US will not be able to adopt the Chinese model for elder care. Families in the US are not interdependent like they used to be. Parents and children are not as close as they use to be both physically and emotionally.
China has a communal society. Nothing like it exists in the West.
Chinese society has been shaped by thousands of years of culture and tradition. It is not easy to replicate in the West.
But it is doable if there is the political will. China can help.
Whole world? Florida? U joking?
😀😀😄
OK - you make a lot good points. However, (1) you advise there are millions of rural folks to be relocated to the cities. (2) They will have to live somewhere that they probably can't afford. (3) No matter how beneficial the local feeding stations sound with a community style atmosphere, somehow the inexpensive food stuff must be subsided. And (4) healthcare appears to be a major roadblock when the population is being undercut with reduced birth rates. There in China as well as the West. I don't quarrel our economy is in a mess going forward - but really - what to do that works for our society?
This well said Kevin, Tanzanian population is projected to be a 300million by current trajectory... The only thing that keeps low homeless problems despite having poor demographic is its culture, there is no policies for even having elderly home care system by the government it's all falls through family members caring
Individualism and fear of aging is disastrous for the U.S. Maybe the Chinese just value family and social cohesion over government bureaucracies managing elder care.
You did not mention the retirees from state owned companies, state careers (judges and associateds, police, army, party officials, fiscals, certain politicians). Here in Brazil, the lion's share belongs to relatively few public servants, and little to remaining largest portinhola of population. It's even worst than the USA. People Dreams to become a public servant of any type. The justices want to earn and to retire as much as very successful lawyers. Please, tell me I wrong about China and her privilégios... You have made to abandon most channels of western expatriats. You talk about what is most interesting abou real life in China. Thank you. All the best for you and family. Djacir, from São Paulo, a 67 year old retiree. 😊
Indian culture also has this practice of Children taking care of their parents - in fact whole of South Asia derives this culture from being part of Bharat (India) for 5000 yrs.
How can Western children take care of parents when many don’t know who their parents are?
😅
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snow?
Just wondering if the culture of driving out their children when they are 18 have any impact on the elderly today. The retirees no longer have children with them.
The amount of pension will depend on PPP.... PPP is very different from western world. PPP is Purchasing Power Parities.
Filial Piety .. Chinese & Asian (Malay, Indian & etc racial / ethnic group ) CULTURE & Values … Very different from Anglo-Saxon & European ( Western Caucasian) historical, culturally & values based on individualism …