Under capitalist economic theory, this should not be.
"Supply and demand" drive markets.
This theory does not hold true for China, why?
With the largest population in the world, China's cost of living should be thru the roof.
But its NOT.
China's low poverty rate contridicts main stream economic thought.
American capitalism, has given rise to higher poverty.
Higher cost of living
Higher violent crime rate
Time to throw out western economic policies.
China has proven this.
It's because of exchange rates. Chinese yuan is worth bigger all compared to western currency but China has to pay educated workers competitive wages to attract these workers so you get obscene income disparity in China between educated and unskilled workers. Capitalists can only charge groups of people what they can afford to pay so Chinese capitalists can only charge poor Chinese small amounts for stuff they need - as low Chinese incomes improve and yuan increases in value Chinese capitalists will charge more for stuff. But Chinese poor are poor as hell within their own nation and even moreso internationally so I don't understand how you claim that Chinese have lower poverty rates than the west - plus Chinese have no social security system especially for many so-called migrant workers and their children. You are talking a lot of nonsense and nobody believes that China has less poverty than the west. Homelessness and crime rate differences are due to culture and due to the fact that China has no social security systems or charity that allows homeless drunks to survive without having to work.
This post was edited by HailChina! at 2018-9-11 06:31
But yeah - capitalists can only charge what the groups of masses can afford to pay. Australia has highest min wage and that is why we pay more for everything here. The name of the game for capitalists is to cancel out tiny surplus of the masses and that way a poor person that lives in a nation with a currency of high value gets no benefit from the value of the currency due to the fact that they have no surplus. I know a guy that is on a small government pension and he lives in China for much of the year because in China his small pension is worth a hell of a lot more than it is here. But most poor masses can barely afford a short trip to Bali once in a blue moon so they get no benefit from high value western currency due to cost if living cancelling surplus. Fuel is cheap and often subsidized in many poor nations so that people can afford to buy it and get about doing their busy work but in wealthy nation like Australia fuel costs a fortune and has massive tax on it. Electricity costs a fortune here because the majority can afford to pay for it.
UYA Post time: 2018-9-11 13:51
Here is the poverty map put out by the CIA:
Why do the western capitalists allow you to claim that you lifted a Chinese out of poverty because they earn $1.25 per day? It is because you give them all the credit by claiming that it is the opening IP of China to capitalists free markets that is the reason for your poverty reduction. I don't care if you aren't Chinese I am calling you Chinese. So capitalists are to thank for your great effort of getting all these poor Chinese to $1.25 per day - not so-called Chinese socialism. And since China is third world with crap currency and majority very poor you can't have a high cost of livk g like I said. Other reason CIA and World Bank claim that person living on $1.25 per day is out of poverty is because US is leader state and ultimately responsible for global poverty so they don't want to admit how many poor people there actually are in the third world.