Summary:
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.
Analysis:
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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