China Supply and Demand

In the chinese economy, there is beginning to be an issue with supply and demand over products, more specifically those that are farmed.  This article explains the incident of a farmer committing suicide after he found himself in economic hardship, unable to sell his crop and make any profit off of his cabbage. China being a communist society, for a plate of vegetables to be placed on the dining table, it has to go through numerous processes, including testing, approval, loading, wholesale and distribution. While farmers are suffering greatly as the price of crop at their level is decreasing, the price of the food to consumers is staying the same and keeping a steady demand after all of the prices that are added on after the initial buy. Things like road tolls and taxes are added on, creating a much higher price for the goods than the farmer sells them for.  This is becoming an issue at the supply level as farmers are wanting to supply less because they are having a hard time being comfortable and enjoying their lives.  The government has stressed that it will try to ensure its citizens lead happy lives. However, a recently concluded survey showed that 70 percent of those polled said they didn’t feel they have a good life. 

 

http://the-diplomat.com/china-power/2011/05/03/china%E2%80%99s-unhappy-uneven-growth/