How Has Deng Changed The Economy In China

In 1978, Deng gave individual families in the countryside the ability to be responsible for their own farms with long-term leases. He also allowed peasants to sell most of their crops in the marketplace. He also gave up some of the government control on education, health care, housing, and other necessities- all of which had previously been completely under the control of the government. In addition to this, he allowed people to establish their own businesses outside of agriculture which they were not allowed to do before. All of these factors beneficially changed the economy by leading to a 48% increase in economic output in the countryside. Deng went on to open China to foreign investment and expand international trade which Mao did not want China to participate in before. This positively affected the economy because it brought in more money from international businesses. Deng continued his reforms as the economy continued to grow. A
The Chinese government officials resent the wealth of the private business owners. The officials devoted their career to working for the government, yet the private business owners could start their own business and suddenly become wealthy. To find their own justice, officials demanded bribes from business owners for government documents such as building permits, and export licenses. The business owners had already paid for their permits, and it was the officials’ job to give them to the business owners. The corrupt government officials have also seized citizens’ land and sold it for a much higher price. This was the government officials’ way of gaining wealth. This is why I would solve this corruption by raising the taxes that a private business owner would have to pay, and I would put that money towards the government officials’ wages. If the government officials had a higher pay, then they would not feel the need to gain wealth