Dear MEL Topic Readers
China's middle class: We're being picked like leeks by the government
When the country’s economy is booming, many can enjoy the benefits. Among those beneficiaries, the middle class is the people who drive the economy the most.
The middle class usually mean the broad group of people socio-economically between the working class and upper class. Their activities are one of the key indicators of the economy because they spend, borrow and invest more when they think the future is prosperous. On the other hand, when they feel clouds in the economic horizon, they cut back their loans for homes and automobiles, spending on luxurious items and activities such as traveling and dining out, expenditures for daily necessities.
Recently, the fast-growing Chinese middle class seems to have been experiencing their first financial downturn. While their salary prospects are uncertain, the cost of living, especially rents, is increasing. To make the things worse, some had invested heavily in the stock market that has plunged nearly 40% this year. Many investors are now forced to cut the losses of the investment. Many of such middle-class people now feel that they are the victims of the government and the exploiting class and call themselves leeks.
It seems like a situation where populism prevails in a democratic state.
Enjoy reading and learn how the current Chinese economy affects their middle class.
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