China's Baby Bust: Consumers, Birth Rates, and Government Impotence

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China recently announced intentions to loosen its One Child Policy as part of a broader shift towards a consumption-based economy. As the theory goes, more births equal more demand for products and services as well as additional security for China's savers that they will be looked after in older age - either directly by their numerous kids or indirectly through transfer payments from younger workers. Unfortunately, the relationship between consumption and birth rates is not straightforward or one-sided: Social, cultural, and environmental factors stemming from China's fledgling consumer culture are pushing birth rates down and are likely to continue to do so regardless of government policy. Read the full piece on Buy Buy China.
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This page contains a single entry by Dror Poleg published on December 2, 2013 2:16 PM.

Chemical Reaction. was the previous entry in this blog.

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