I was thinking about the savings rates in China and in the United States. China, overwhelmingly, saves more than that of its American counterparts. There could be two important reasons for this. Since many in China never know when the next gloomy storm will come through they are more inclined to save for a dark day. Whereas Americans have been in a state of spending money that is not theirs for several decades. It is more of Chinese culture and self-awareness to save and it is the American prerogative to spend money that is not theirs.
The other reason I think Chinese are able to save more is that it is not as expensive to live in China. I can make less money in China and save the amount of money as I did in California without any significant cuts to my spending habits. Granted, most Chinese do not earn enough money to even save like I do. I make 6000RMB a month and the average college graduate makes about 4000RMB and then your average worker is lucky to make 2000RMB.
To me, it seems intelligent for an American to come to China for work and save money. After several years making a salary of 20,000RMB per month I could technically save around $15,000 each year.
It is something interesting to think about. In principal, I think more people should operate with more cash and not rely on the stock market to generate wealth.
Your logic is correct however, most Americans in China have a desire to travel and see the country, an expensive habit. I would imagine that native Chineese have not traveled most of their beautiful country. Thus Americans contribute to the economy and the decrease in their spending dollars. We'll test my theory upon your return with at least $15000. Love Dad
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