China

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

This is an example of “socialism with Chinese characteristics.” For Americans, such policies may seem authoritarian, but this is one of the ways how China lifted 800 million people out of poverty:

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.