The Chinese Have a Problem

Decades of enforcing a one child rule has created a number of problems for China. With 19% of the population 60 years old or older, a low age level for retirement (60 for men, 50 for women) which creates a huge demand on China’s weak retirement system, and a low birth rate (in a country of 1,444,000,000 only 12,000,000 births), China’s economic miracle is in danger of slowing down. Older people require most costly healthcare, generate little income and are not consumer orientated. All the while, the young face the possibility of rising taxes to pay for the care of their elders which goes to slow the marriage and birthrate. This may all be overblown as the decline in population still leaves China as nation with the largest population, but India is closing the gap and they could present a challenge to China in that part of the world. Go to https://www.wsj.com/articles/chinas-people-problem-swings-from-too-many-to-a-decline-that-sees-no-end-11620903602?page=1 for an interesting article on this dilemma.