"Are" is the verb. I didn't understand what you wrote because of that until after a few passes.
Try [GERUND] or better, [VERBing], maybe?
A gerund is just a form of verb, it doesn't prevent it from also being a verb.
It is a form of a verb, but it essentially becomes a noun. Which brings me to my next point- [VERBing] is a participle in this case, not a gerund, since it's an adjective modifying "people."
It doesn't become an adjective, it very much remains a verb. If it is, for example, "people dying" then it's not saying "they are dying people", it is saying that the people are currently dying, i.e. an action, using a verb.
"People are dying" Doesn't make dying a verb any more than "people are fish" makes fish a verb.
>it is saying that the people are currently dying
How about just [SENTENCE] ?
Whether you personally like an argument or not has no standing on its validity and strength.
"There are people [VERB]"
better?
What? The argument is that people are X, and in what country they are X is completely irrelevant. It's called being a human, try it sometimes.