The Economic Problems from China's Aging Population
by gagnonpamela on November 15, 2013 - 11:18pm
Don’t look now, but China has its own demographic dilemma written by Linda Nazareth demonstrate the lack of young people in China, in other words, the population of China is aging which creates a lot of economic problems. After the Second World War II, there was a major baby boom in China which means that less and less people work because they are older, therefore, less Chinese pay the taxes from employment income since a lot stop working at a certain age and depend on the government to help them with money as they do not have jobs anymore. This means that there is less involvement from the population to the government. Also, since the population is aging, more people need the health care which costs the government more money. Those people have more time than money, therefore, they do not use up their time to by new furniture, but they learn other things like cooking for themselves costing less money for them. This issue might also affect other countries that profit of the markets from China which is supposed to cost less for countries like Canada, but since in China the median of the age of people in those markets is 36. Since there is the one-child policy in China too, the birth is very low, therefore, a smaller amount of people work and ask for more money which means that the countries that benefitted from the markets before might have a more challenging time since the products will be more expensive to pay. This will result in the decrease of real gross domestic product per year in China of 3.25 percent. Although, this is a big issue, China could try to find solutions like making the work more fun so that the aging population quits at an older age than they would leave now, or ensure people of better gains from less work.
I believe that this will also happen in many other countries like in Canada, the population is slowly becoming older. Although this has a lot of impact on the economy of the government, they should concentrate on finding solutions like those two who has been proposed in the article because they seem to only concentrate on the negatives things of the aging population. I believe that the conditions of work and the low pays should be fixed so that people in China would want to stay longer in the labor work for a longer time. If the workers are badly treated physically and mentally, it will not help the case.