>> Xiaofan, do you know what it's like -- to hand over 60% 
>> of your earnings to
>> the government, while watching your neighbor cheat the 
>> public welfare
>> system? A business acquaintance from Denmark told me 
>> about it, and I sure
>> hope I never get to experience it firsthand.

> Well, this is a *distortion* technically speaking :)
> and should be removed, for the system to work correctly!

The problem gets terminally hard when the distortions get 
embedded in the system and accepted as part of the everyday 
way of life.

This is most commonly in the form of "corruption" where you 
are expected to pay 'under the table' for services, 
protection and everyday activities. International experts 
(who I will not try to cite here as it's 24 hours out to 
takeoff to China) say that this is the hardest and greatest 
obstacle to helping a '3rd world' country up the prosperity 
ladder. Once corruption is endemic and everyone accepts it 
as a way of life the country seems doomed to exist at a 
financial level well below what otherwise would be 
achievable in equal circumstances. I'm sure that will 
produce some interesting rejoinders.

ALL countries have some degree of corruption in the system, 
and people will be quick to lump in their own government and 
all taxation systems as well. I'll stay out of that one :-).



        R



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