http://www.economist.com/news/china/21570750-first-two-articles-about-impact-chinas-one-child-policy-we-look-shrinking
This article discusses the nature of China's changing demographics for its working age population and effects that this may have on the Chinese economy. The country's working age population has been consistently growing until 2012 where it declined by 3.45 million. While, on the surface, this normally suggests a negative effect on the economy due to a shrinking labor force, it is entirely possible that China will be able to weather the problem while it works on relaxing its one child policy.
On the one hand, China has a high potential for urban employment and a large rural workforce with strong potential to grow migrant worker populations in the cities. This urbanization would also contribute to lower savings rates, higher consumption and an increasing wage rate. Also, the expansion of employment has contributed fairly little to China's startlingly high growth rate, weighing in at no more than about 0.7 percent. China can continue to augment its labor and continue its growth for now, but the demographics issues will have to be addressed eventually, lest they become a serious burden for China's growth.
This article discusses the nature of China's changing demographics for its working age population and effects that this may have on the Chinese economy. The country's working age population has been consistently growing until 2012 where it declined by 3.45 million. While, on the surface, this normally suggests a negative effect on the economy due to a shrinking labor force, it is entirely possible that China will be able to weather the problem while it works on relaxing its one child policy.
On the one hand, China has a high potential for urban employment and a large rural workforce with strong potential to grow migrant worker populations in the cities. This urbanization would also contribute to lower savings rates, higher consumption and an increasing wage rate. Also, the expansion of employment has contributed fairly little to China's startlingly high growth rate, weighing in at no more than about 0.7 percent. China can continue to augment its labor and continue its growth for now, but the demographics issues will have to be addressed eventually, lest they become a serious burden for China's growth.
I agree with China's shrinking age policy because with that many workers, there must have been diminishing marginal returns. Now with the shrinkage, there's a chance of more profit for companies and higher wages for workers due to the decrease of employees. A problem that might come out of this though is unemployed workers.
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