Friday, March 06, 2015

China's Leaders Grapple with Inequality as Growth Weakens


            China has a vast history, one that spans into the BCE era. Just a little over three decades ago, China’s Communist Party allowed for some of the people to get rich very fast. Now, this sudden happening has caused extreme inequality in China. China is now starting to find out ways to fight this inequality. “The only way to build a country is to enrich its people,” Premier Li Keqiang said during the annual meeting in Beijing for the legislatures on Thursday. In 2013, the government planned to tighten the wealth gap by aiming for minimum wages of at least 40 percent of average salaries by 2015. This is something that is mostly likely not going to happen by the end of the year. This is because the 40 percent is a national goal, however, the local governments want to have a different idea. Those local governments are used to oppress minimum wage levels to be able to keep and attract businesses.


            I believe that the idea of squeezing the gap down so that the lower percentage of salaries start to get almost an equal amount of salaries. If the inequality can go away, I believe that China will start to become one of the top leading payment locations in the entire world. The fact that they are almost as high as the US in the Gini ratio makes a show that China is not a fully socialist economy. The Gini ratio is used to be a globally comparative measure of inequality. I think that if China does something to help erase the inequality, then the rest of the world would start to see that there is some way to erase this issue and slowly the inequality in the entire world will go away and there could be a better chance of everything being better and even. However, I think it will take a lot more than just squeezing down the wages.

Elizabeth Causby
March 6, 2015
8:25 pm

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