A critique of capitalism in China from the voice of Capitalism; The Wall Street Journal. The irony being is that they denounce their favorite argument for unbridled capitalism, the trickle down theory of economics. Their argument could equally apply to America.
In China, Growth at Whose Cost?
Nation's Poorest Seem to Be Getting Left Behind,
Raising Sticky Questions for Communist Party
As long as the country's newfound wealth eventually trickled down to everyone, the reasoning went, the benefits outweighed the problems.
But now, as the Chinese government worries about social stability and amid questions about the social costs of China's rapid growth, new figures suggest the poorest of the country's 1.3 billion people are getting even poorer.
From 2001 to 2003, as China's economy expanded nearly 10% a year, average income for the poorest 10% of the country's households fell 2.5%, according to an analysis by the World Bank that has been presented to the Chinese government. Those roughly 130 million Chinese earn $1 a day or less, the World Bank's global benchmark for poverty.
Meanwhile, the nation's total income rose sharply, and other income groups saw gains, suggesting that the rich are getting richer at the expense of the poorest.
Latest Data on Poverty in America
In this period of 'great economic growth', according to the delusional Bush administration, these recently released facts by the Census Bureau are quite telling of the real America:
-In 2003, 2004, and 2005, the percentage of the poor living in deep poverty stood at 42-43 percent, higher than in any prior years on record.
-The percentage of the poor who are below half the poverty line has risen steadily over the last two and half decades: from 34 percent in 1980 to 39 percent in 1990 to 43 percent this year.
-The actual percent of the population who lived in deep poverty in 2005 rose to 5.4 percent!
-The poverty rate is higher in the fourth year of an economic recovery (2005) at 12.6 percent, than it was in the previous height of recession (2001), when it stood at 11.7 percent.
-The median income for non-elderly households was $2,000 lower in 2005 than in the 2001 recession year.
These developments in a so-called 'economic recovery' are unprecedented in economic recoveries (with data going back to the 1960s). They are bad news for the poor, indeed.
It is the shame of the republic!
What does it mean to be poor in America?
For many of the 37 million Americans trapped in economic bondage, it means work, often backbreaking work, for little pay. Illness, car trouble, a rent increase — any of these can spell disaster, sending a family into economic meltdown.
For seniors struggling to live on a fixed income, an increase in a power bill or at the gas pump can send a monthly budget crashing. More seniors are now relying on their adult children for financial help. And for the 13 million children living in families with incomes below the poverty level, it sometimes can come down to challenges as basic as having enough food.
Recently, Congress has done less and less to help Americans hanging onto the ledge of the nation’s prosperity. That should change.
... Congress could fix the broken reform effort by doing more to give families a way up and out of poverty. Congress cut $55 billion from programs that help the most vulnerable, including food stamps, employment training and child care. Putting this money back would ensure the best chance of success. An increase in the Earned Income Tax Credit also would help families climb out of poverty. ...
— Daytona (Fla.) Beach News-Journal
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