Interesting piece on the European news about China paying the price for the birth rate policy it initiated in the '80s.
The one child only policy has left them with an extremely aging population. There are not enough younger people to aid their aging parents so the government must step in (uh,oh). Of course, this is contrary to the traditional Chinese culture, but what must be done must be done. Low birth rates in Europe are contributing to the problems in the EU.
Additionally, the policy has left China with a labor imbalance. A fast growing economy with a smaller labor force to meet its needs. The workers are demanding more in wages and the fear is that some manufacturing will leave for Thailand or Vietnam where labor is cheaper.
I hope the Chinese still have a desire to buy U.S. debt.
The one child only policy has left them with an extremely aging population. There are not enough younger people to aid their aging parents so the government must step in (uh,oh). Of course, this is contrary to the traditional Chinese culture, but what must be done must be done. Low birth rates in Europe are contributing to the problems in the EU.
Additionally, the policy has left China with a labor imbalance. A fast growing economy with a smaller labor force to meet its needs. The workers are demanding more in wages and the fear is that some manufacturing will leave for Thailand or Vietnam where labor is cheaper.
I hope the Chinese still have a desire to buy U.S. debt.