The Better Business Climate model undermines unions and makes this worse for workers. When unions are strong, they can bargain and win better wages, working conditions, and benefits. Also, according to the Jobs, Wealth, Income, and Our Future Handout, as unions decline, the middle class disappears. With no middle class, there is just the upper class and the lower class, which means great income and opportunity gaps. Therefore, according to the same handout, the top 1% has accumulated nearly 40% of America’s wealth.
Unemployment will cause lower salaries because more workers but less jobs, so the people that cannot find a job in China they will find a job in other countries. Some of the degree graduated student cannot find a job in the China because there was not job for them. According to Patience (2013), the companies were less hiring 15% graduated students from last year. That was a bad news for the graduated students because they were just a few of companies’ job to choose. Unemployment make the students stress.
Although the United States is also guilty of having its people live in poverty, and others falling victim to violence and countless injustices, it’s not as tolerable as seen in the border towns. It is eye-opening that two countries that are so incredibly close geographically can be so far apart economically. This could be traced back to wealthier, faster developing countries exploiting underdeveloped countries like Mexico. The uneven distribution of economic power, assets, and increased globalization benefits wealthier countries like the United States and can hurt poor ones like Mexico as seen in the book. Increased globalization for poorer places like the ones mentioned in the book means they get to be exploited, pushed further into poverty, used for cheap labor, and any valued natural resources, all leading to a dying economy.
This is true because the people who were already poor, who were working for the money so they could afford things like homes, food, water, and clothing, were staying poor, because their pay was so low that at the rate of them using their money for necessities, they were earning barely enough to afford them. Whereas the people who were already rich, merely used their money to get even more money, and it would grow exponentially. They could have bought stocks or decided to invest in companies, but either way, they would have the money to do it, whereas the poor people would barely have the money to even live. Everything about these unfair conditions of working was true in both countries, in Russia and
A different issue that affected inequality in the economy was that people with power often would pay themselves large salaries over their employees. The new tax reform was also in favor of the rich because it helped reduced their taxes which did little good for the average American. In 1993 the tax code changed several inequities that were in the government tax structure in the 1980s. The rise in minimum wage improved the quality of living for the people who received a very low wage for working. This caused a decrease in inequality pay but not for income.
In recent years large companies have also been paying their workers higher wages. And the more profit a company makes the more it benefits the economy. “Americans think the U.S. economy benefits when big businesses or small businesses make a profit, although, by 84% to 64%, more consider small-business profits helpful”(Saad). Although those are some supporting facts for large businesses in America, they are too powerful and too rich. In the past and even in present time large companies generally hurt their consumers and workers.
Although Deng brought China to the international stage by normalizing relations with other countries and provide more options for the Chinese economy, Deng was still very firm on Mao’s thoughts. Deng acknowledged that China would not become a capitalist country. Like Kenneth Lieberathal mentioned in his book Governing China, “To develop efficiency, it was necessary, therefore, to decentralize power within the state and to permit at least part of the Chinese economy to develop outside the noncompetitive state sector of the economy
Immigration numbers were part of the reason it was so easy to build large factories, sweat shops, and buildings. These immigrants came to cities ready to work for whatever they could get. The idea of working in dangerous places for long hours and a few dollars was still better to them than staying in their home countries to starve of famine or be treated poorly because of their religions. The American people feared the immigrants for their new religions and customs, but also because the low wages being paid made people worry that it would drive down all wages. This also made it so many of the immigrants lived in ethnic slums turning areas of large cities into less attractive places (492).
Without well-paying jobs, they cannot afford a proper life to live. They cannot afford the essential needs of life like food or clean water, or even a house to live in. Many resort to stealing to keep themselves alive and higher authorities wonder why this happens every so often. A good example of poverty comes from the quote from Richard Delgado 's book Critical Race Theory (Third Edition): An Introduction, "They pay more for many products and services, including cars. People of color lead to shorter lives, receive worse medical care, complete fewer years of school, and occupy more menial jobs than do whites".
Instead the China-Africa trade has brought some impact on Africa’s market traders and also contributed to poverty. Mercantilism is failing Africa, particularly the SSA. Most of African states are still poor and majority of their citizens still lives in poverty. The trade between China and African is not mutually beneficial, because African states benefit less while China benefit most. Another things that made African states not to benefit most in the trade is that, they export raw material or minerals because they lack means to process those raw material into finished goods and services.