Eliminating Poverty — Chinese Style

Here’s a classic example of how China eliminates poverty. It’s radical but effective. To help 1.88 million poor people stuck in extreme poverty (making less than $1.90 a day) in Guizhou province, here’s what the Chinese officials did:

Build a huge city

• Move the 1.88 million poor people into the city and give them free/subsidized housing

• Provide them with opportunities to have relatively high-wage jobs

Here’s another example of how the local government gave a man 30 sheep free of charge and lifted him out of poverty. Watch this 30-second clip


These are examples of “socialism with Chinese characteristics.” For Americans, such policies may seem authoritarian or strange, but such creative ways are how China lifted 800 million people out of poverty in the last 40 years:

And by lifting people out of poverty, China’s GDP went from $200 billion in 1978 to $13.5 trillion in 2018 (65-fold increase in 40 years).

This is also why 85–95% of Chinese approve the performance of their “communist” government.


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