Monday, April 18, 2011

China's "One-Child" Policy Is Economic Suicide: How China's "Scary Housing Bubble" Reveals Inherent Weakness In Chinese System

And, in my opinion, it reveals one of the fatal flaws that will bring down the entire Chinese economy.

From the New York Times:

China's unrelenting real estate boom has driven housing prices up by 140 percent nationwide since 2007, and by as much as 800 percent in Beijing over the past eight years. The soaring prices have even affected relationships -- only men who can afford nice apartments are considered marriage material.

The Chinese government, concerned about a housing bubble, recently issued new measures to curb the growth in housing prices. On Thursday, Moody's Investors Service downgraded China's property sector to "negative" from "stable," warning that the government's measures may dampen demand.
With typical shortsightedness, the NYT article is all aghast at the short-term problem of inflation vs. the long-term Chinese demographic suicide which is the result of their one-child policy.

Socialist systems are Ponzi schemes in which governments count on inflation, and the resulting ever-rising GDP, to pay for the social systems of today with the taxes from today's wage earners.

Because the bloc of wage earner's exceeds those who require social services, the system will work...

until, the population of people requiring social services begins to exchange places with that of the wage earners.

China's one-child policy insures that gradually the number of older-people on social services come to exceed the population of people who are actually tax-paying wage-earners.

That's called disaster and economic collapse.

It's time for America to begin looking for factory workers elsewhere.

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