As China’s Economy Slows, ‘Business Cults’ Prey on Young Job Seekers

If you unleash the hounds of Capitalism, like the Chinese "Communists" did, you have not to be surprised that such schemes are taking hold in your country. There is no other goal for people in China today than to make money, make more money and getting rich. In the long run this will be the cause of the downfall of the CCP.

We saw the Bitcoins and Falun cult. I do not believe we need to worry about the possibility that the Chinese government will tolerate such society-destabilizing activities. Our reporters need to understand the Chinese society better.

"For many Chinese, the groups preying on them are a symptom of broader problems in the country: vast inequality, a crisis of values and a freewheeling economy that can sometimes resemble the Wild West." "Crisis of values?" Maybe, if you consider worshiping whoever earns the most bucks in the fastest possible way. But that is true these days in other countries in the West too, and it's not so unique in China. I do have serious doubts as to what this has to do with "vast inequality." Ok, so most of families scrap by their last bit of financial resources for their kids' education, but the kids can't find a decent paying white-collar jobs that can begin to repay the loans that the families incur. Does that have to do with "vast inequality," or the fact that there are simply not enough jobs (particularly white-collar jobs that these youngers and their families deem worthy of their education) to go around? And that has more to do with too much competition chasing too few opportunities/openings when the national economy is slowing down substantially. Wild West or not, the best way to harm against such phenom, is to educate people to NOT be just naive and stupid. Or, perhaps they should adjust their expectations, that there are more blue-collar jobs than white-collar jobs, oftentimes paying far more than white-collar jobs do, they would be much better served.

I am grateful for this excellent article which will further help spur efforts to resolve this problem, but I am confident this problem will be resolved. Such corruption is a threat to all Chinese.

The scale of this is staggering.

https://fred.stlouisfed.org/graph/?g=en9O August 4, 2014 Real per capita Gross Domestic Product for China, Japan, United States and United Kingdom, 2007-2016 (Percent change) https://fred.stlouisfed.org/graph/?g=en9Q August 4, 2014 Real per capita Gross Domestic Product for China, Japan, United States and United Kingdom, 2007-2016 (Indexed to 2007)

The Chinese economy is growing at 6.9% so far this year and grew 6.7% in 2016. Per capita growth in 2016 was 6.1% and will be a little higher this year. So the problem is not slow growth. Real per capita growth since 1977, or these last 40 years, has been completely unlike that experienced in any country in the last couple of centuries. The problem here is benignly and smoothly integrating millions of Chinese in the remarkably robust economy and that sort of problem is what planners need to and have been focusing on. There is every reason to think China will continue to be successful in integration through this spate of corrupt practices. After all, hundreds of millions of Chinese have been raised from poverty these 40 years and the government intends to raise more.

The ones this country rarely get prosecuted either. In fact some of those who benefit from them get government jobs!

They need new rules to require registration of those soliciting money for investments or new businesses. They need to establish penalties when abuses are reported. They need to publicize the abuses so that prospects are more alert to the risk. They need to allow people to report abuses online on a public board (difficult in a country where such matters are usually kept private).

So the "nature of man" rears its ugly head in China too!

Some "friends". These are indeed pyramid schemes and they are notoriously difficult to prosecute and stop. They operate on greed and ignorance.

People got to have some doubt if they encounter a job-posting whose terms sound way too superb to be true. It profoundly saddens to witness through this article the weakening of current Chinese economy and, as a consequence, its endless stream of youngsters falling victim to this ongoing trend of pyramid schemes. It most definitely is imperative that the Chinese government elevates its current level of crackdown on these exploitive groups in order to prevent any more of victim.