Foreign Policy reports:
Despite China's astonishing economic growth, it has gotten harder for people like my friend to get by in the big city. His is not a particularly lucrative profession. Like many in Beijing, he cannot count on his annual pay to keep pace with China's official rates of inflation -- which many economists suspect are lowballed anyway. (The consumer-price-index inflation rate is considered so sensitive that the State Council approves it before it is released publicly.) Even so, every month this year consumer-price-index inflation has exceeded the official average monthly target of 4 percent. Last month state media hailed it as good news that it was, officially, just 4.2 percent.
Anyone in Beijing can point to examples of friends who see rents hiked 10 percent or more in one year. The prices at restaurants keep going up, even as portions are getting noticeably smaller. Throw in the loss of intangibles that money can't buy -- like air quality and food safety -- and you begin to understand the grumbling among some of Beijing's non-wealthy folks that their standard of living seems to be diminishing, even as the national GDP surges ahead at a heady 9 percent.
Could it possibly be true that a swath of people in China's big cities is downwardly mobile, if one compared wages with living expenses?