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.

 

 

http://www.theglobeandmail.com/report-on-business/economy/economy-lab/dont-look-now-but-china-has-its-own-demographic-dilemma/article15025967/

Comments

In my last Sociology class we were discussing the same topic. I find it so interesting that there is most likely not enough young people to help the older people. What amazes me from your article is that China has such a vast population and policies to control the growth of the population that the situation cannot support itself or the economy. In class we were talking about the population pyramid, and how China’s population of younger people are greatly out numbered from the elder people. The shape of the population pyramid is no longer a pyramid, it looks more of a bell shape due to the baby boom as mentioned in your article. I am surprised to read in your article though that the main solution thought for this problem was making work more enjoyable for people so the elders will not retire at an earlier age. I just think that for how large China’s population is it surprises me that they have to alter their One Child Policy to alter this problem. I do see your point of view when you think that Canada will also be on the same track as China now. I do also completely agree with you on the labor aspect. I think that the employees in China should be treated much differently, and pay should be raised in order to accommodate to this problem, I do not think that treating employees better is too much to ask at all. I do like your article you did a very nice job writing it.

This phenomena is happening all around the world in industrialized countries, where the life longevity is higher and where the number of child per person is low. However, it is worst in China mainly because of the One-Child Policy that was introduced back in 1979, and the statistics says that it averted around 200 million of birth between 1979 and 2008. Thus, those two reasons affect the aging of China’s population that why it is worse than other countries. This can also can lead to economic and political problems in a few years, because China is known for being the manufactory of the world and if there is less people to work they won’t be able to keep their insane rate of production.

I feel that this is a serious issue that many people are undervaluing. This presents two separate problems, as you mentioned: China's aging population means a greater demand for health care, as well as a smaller workforce to provide that health care, and other goods and services. I think that China's greatest asset is its productivity, because it produces many goods that are used around the world. If China were to lose that high productivity, their economy would suffer. There will definitely be time to prepare for this however as an aging population doesn't happen all at once and the problem may have even been greatly minimized by the time the aging population has reached very high levels.

I really liked your article! It is very well written and the ideas are clearly stated, great job! You could have explained who the author is and from where the news article came from. It would have made the article more credible for the reader if he/she know that the source is reliable. For example, you could have included in your article that it is from the Globe and Mail, which is overall a reliable source as it is a national newspaper that has been around for a very long time and that surveys are in favor of it. In addition, the author, Linda Nazareth, is an economist. Considering the fact that she is an expert in her domain, it becomes easier to trust what she said about the Chinese population and its economy. Aside from the source which could have been stated to emphasis the reliability of your source, your article was good!

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