China being consumed by inequalities

China being consumed by inequalities

Clearly, the progress of the Chinese economy is astounding, and in this view, the $ 14 trillion that represents China’s gross domestic product is almost a miracle compared to the state where this country is located. It is still 20 years old. But in reality, what is the standard of living of Chinese compared to citizens of other countries? While China’s overall GDP is remarkable, other measures point to a more mixed situation, either apparent depression or not.

The nominal GDP, measured against the dollar, the global reserve currency, ranks China 60th in the world behind the Seychelles and the Maldives. This indicates that China has been relegated to the 73rd world rank behind Guinea in terms of GDP calculated in terms of purchasing power parity, i.e. the equivalent purchases between countries for a fixed amount. The United States is ranked fifth in the world (behind Luxembourg, Switzerland, Ireland and Norway) and seventh in terms of purchasing power, respectively. In fact, American performances are quite extraordinary, because the country ranks fifth in the rankings, with small, monolithic and socially stable economies distinguished, while they – the USA – are a great economic power, with a very diverse and strong social diversity. In comparison, China’s ranks 60th and 73rd, behind the poorest third world countries, and its overall GDP ranks second in the world behind the United States.

Hunting in China against the super-rich

This apparent contradiction that allows China to be considered an economic superpower and an underdeveloped country is demonstrated nationally by the richest Chinese who lead the same lifestyle as the wealthy Westerners. Their fellow citizens survive worse than the Guineans. Indeed, inequality is a global phenomenon and a global catastrophe that exists in all countries. Even within the most unequal western country in the world – the United States – the poor have a life standard comparable to that of Guinea.

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Xi Jinping is well aware of Mao’s long march and the history of his country, uniting the survivors, peasants and the homeless at the time, who overthrew the regime and formed an army accusing it of promoting injustice and inequality. . It is through this prism that we must see the hunt for the super-rich in China today, with the declared aim of proving that the Communist Party is interested in the poor. However, the actions of Xi Jinping and his followers will adversely affect the Chinese production apparatus, hence their country’s face GDP. So Chinese leaders are at a crossroads. When confronted with poverty in their regions comparable to the poorest countries in the world, they are forced to take drastic – often dramatic – steps aimed at showing their citizens that they are determined to fight this catastrophe, knowing full well that their actions destabilize their confidence. The business community in their economy is therefore weakening this GDP, which makes them (rightly) proud.

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Michael SantiHe is a macroeconomist specializing in financial markets and central banks. Is the Founder and Managing Director ofArt Trading and Finance
. He has just published “Armchair 37” Introduced by Edgar Morin.
He is also the author of a new book: “The Testimony of a Frustrated Economist”. His page Facebook And his sonTwitter