China reports dramatic drop in poverty

Discussion in 'Economics' started by Grandluxe, Nov 22, 2011.

  1. China has reported a dramatic decrease in rural poverty over the last decade.
    09:03 AM GMT

    The number of rural citizens living below the national rural poverty line fell from 94.2 million people (10.2% of the rural population) in 2000, to 26.88 million (2.8%) last year, according to figures released Wednesday by China’s State Council.

    The sharp drop occurred despite the fact the national rural poverty benchmark was raised from 865 yuan (US$136) in 2000 to 1,274 yuan (US$201) in 2010.

    “Wage growth is the key to understanding this whole development in China,” said Duncan Innes-Ker, Beijing-based senior editor and economist at the Economist Intelligence Unit.

    Ker said the dramatic decrease “doesn’t shock him at all” citing the “phenomenal scale of income growth,” whereby average annual incomes are growing at rates of 15-20%.

    “Even the poor have been experiencing very strong growth in incomes…in the last five years, the supply of unskilled or semi-skilled labor is starting to fall short of demand, so wages for those labor classes have been growing very fast,” he added.
  2. But, but, but... a modern economy is impossible without a liberal democracy!

    *blank stare*
  3. Sure just spend and borrow a way out of the problem. What a great strategy. Reality is, save, save and don't spend. It is ingrained in the Chinese culture that money is very important. Here in the West children are told money is the root of all evil. The Chinese have it right and the balance sheets say so.
    Lets just have another round of QE that will fix it. Draconian measures are needed now to fix the system, if not it will fail.

    All for One and Theft to All