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Both state capitalism and communism have failed in China - Unemployment rate continues to increase.

2023-10-01  Category:China

Both state capitalism and communism have failed in China  -  Unemployment rate continues to increase.

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A communist country with increasing unemployment?

The reason why it's funny that the number of unemployed people in China is increasing is because China is a socialist and communist country. Communism rejects capitalists and defines them as the root cause of social evil that exploits people. The state confiscates the produced goods. In other words, the state controls businesses and other things that produce social benefits. Even land is not private property. The state distributes the income generated from this. Therefore, the governments of communist countries have tremendous power. Because there is only the nation and the people.

Capitalism creates unemployment

Capitalism has a completely different structure. Based on a free economy, free competition produces people who drop out and become unemployed. To prevent this, we will reduce the unemployment rate by increasing new employment. To achieve this, it is necessary to promote industry and develop new fields. Viewed in this way, both communism and capitalism have one thing in common: the economic policies carried out by the state boil down to employment policies. Companies seek sales, but the nation seeks to secure employment for all its citizens.

Employment policy reduces unemployment

In that sense, communism operates from a system design that does not inherently create unemployment, whereas capitalist countries, on the other hand, have a system design that creates unemployment, and fill it with economic growth and employment policies. That's what it means.

Communism is a distribution society

So why is there so many unemployed people in China? In capitalist countries, when the economy is in decline, the only way to reduce the unemployment rate is to foster industry and increase employment, but communist countries must have a system designed and operated in which the state forcibly distributes goods.

A country where both state capitalism and communism have failed.

In other words, the original distribution is not working. Or, vested interests have increased and they cannot control it, and communism is no longer possible. And as a result of continuing something like state capitalism, all of these things are failing.