Most people think China is the next superpower. But the truth is that China has a catastrophic problem.
China is facing an unprecedented age demographic crisis where the number of old people is rapidly outpacing the number of young people.
What Caused This?
The One-Child Policy: Implemented by the Chinese government in 1979 to control population growth.
In the 1950s, population growth started to outpace the food supply. In 1964 life expectancy skyrocketed by 5% and steadily increased by year. In the 1970’s economic growth skyrocketed after several important policy changes made by China.
Learn the benefits of becoming a Valuetainment Member and subscribe today!
One-child policy resulted in a large reduction in birth rates, creating a significant age imbalance in the population.
Created a “4-2-1” problem:
- Where one child is responsible for supporting two parents and four grandparents.
The problem has compounded because of urbanization. Chinese citizens are moving to cities and adopting urban lifestyles at a higher rate, causing the desire to have more children to decrease.
The cost of raising a child in a city, along with the time and effort involved, has discouraged many young couples from having children.
How this impacts China today and going forward
- Fewer young people entering the workforce to support the older generation
- Shrinking workforce is leading to labor shortages
- Reduced productivity and economic growth
- Increased labor costs and reduced China’s competitiveness in the global market
- Decreased consumer spending
- Older populations tend to save more and spend less, leading to decreased consumer spending, which is devastating for economic growth
- Household consumption accounts for less than 40 percent of China’s GDP (National Bureau of Statistics of China)
- Ranked 144 in the world for (Household consumption as percent of GDP)
- The United States is 68%
The only way to fix a problem like this is through mass immigration. Unfortunately for China, it has had a negative net migration rate for the last 50 years.
China is going to have major problems over the next decade.
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. Thank you for partnering with us to maintain fruitful conversation.