Poverty and Unemployment SKYROCKETS in China Amid Virus Fallout

(ConservativePeak.Com)- A report from the AFP News Agency suggests that, despite communist China’s claims of success in the fight against the coronavirus, the country is struggling with a massive economic crisis. Millions of Chinese people have already lost their jobs as a result of lockdowns and economic activity, meaning the country may struggle in the coming months, or even longer, to continue its economic expansion.

The report also claims that, as a result of the virus, the Chinese government will not be able to meet its ambitious target of eradicating poverty by the end of the year.

The Chinese government has moved quickly to get the economy moving as quickly as possible, and recently celebrated very publicly the reopening of Wuhan city, where the virus is believed to have originated. However, many Chinese companies have struggled to reopen without difficulty and many workers are still unemployed.

Being a communist country, China is defined by its huge wealth gap. It may be a talking point of Senator Bernie Sanders and Rep. Alexandria Ocasio-Cortez, but countries like China with big governments have a small group of extremely wealthy people and a gigantic population of people living in poverty. Roughly 5.5 million people are living in rural China who live on less than 2,300 yuan per year. That’s around USD 460.

The economic impact of the Chinese coronavirus threatens the very promise of the country, too. China’s authoritarian government promises better economic growth than free countries, a trade-off that many Chinese people accept. This loose agreement with the Chinese people could come under strain in the coming months as a result of the nation’s minimal social security net.

For a country with such a big government, it really doesn’t have many systems in place to help people when they become unemployed. Between December and February, according to the AFP report, some five million people were out of work in the communist country.

Not just that, but the Chinese government also allowed companies to stop making social security payments, including pension and unemployment contributions.

The report also suggests that the skyrocketing poverty and unemployment could result in migrant workers in China leaving the cities and moving back to rural areas where the cycle of poverty begins again.

Doesn’t sound like communism is so great after all, does it?

Meanwhile, Nobel Prize-winning economist Vernon Smith predicts that the United States economy will rebound quickly much in the same way West Germany’s economy boomed after price controls were abolished.