"China's only children tend to be more pessimistic, more self-centered
and more risk averse, traits that are likely to affect the country's
labor market and have economic implications, according to a study
conducted by a team of four researchers from Australian universities."
A fascinating aspect of the reading for next week (in Macroeconomic Policy), deals with China and the US in terms of the National Savings Identity. While the US runs under a more precarious bond funded, debt-incurring system, China may actually have an 'excess savings' problem. As the export so much more than they import, they are left with a resounding budget surplus in all sectors of their economy. How does this new psychological study about their countrymen, support or refute their concurrent NSI data? What does this data say about how they will be as a country, in the coming decades on the global scale?
It clear that China will is occupying a crucial position in the world sphere. However, in this article, one can realize that the economic development is not enough. In that case, the education system, Mass Media, and so forth have played a very important role. Nowadays, most of them do not think about having children instead they are caring about their parents and their grandparents. As one commenter said: " “One-Child Policy” should be renamed “The Two Parents and Four Grandparents Policy” when you think about it.
ReplyDeleteI think the "One-Child policy" in China is a good thing. China, by far, has the most people in the world. They are also overpopulated and the government had to do something to kind of keep the population growth in check. I also think China saves a lot. Even if they have a saving problem, its better then being in tons of debt like the United States.
ReplyDeleteEven before China’s one-child policy was implemented, the Chinese were known for their high savings rate. Whereas in the United States we take out loans and are accustom to buying on credit, in China it is typical for people to buy big-ticket items such as their homes with cash. Thirty years after the one child policy has been implemented, it notion to save and defer risk have only increased.
ReplyDeleteThe article points out that though the one child policy was only suppose to last for 30 years when first enacted, it has yet to be phased out. As the time, the policy was a reaction to fears that China would not be able to agriculturally support their growing population. Now, with the technology we have today, this should not longer be a concern.
Though China has grown increasingly accustom to the one-child policy, it does not mean their economy has. As the population dwindles, it means less consumption. If people are not making business growth because they do not want endure risk, the economy is going to lag. Bottom line, for consumption to increase China must loosen their one-child policy regulations.
More information on the cultural effects of the policy can be found through the link below:
http://www.businessinsider.com/study-chinas-one-child-policy-creates-risk-averse-little-emperors-2013-1
From an Asian perspective I find this article interesting because for years I've observed hardened Asian parents and their parenting styles. It's no secret that high expectations and strict values are common in Asian families. Children that are raised like this lack the freedoms to literally have fun sometimes and dont learn things through experiences whether good or bad. Which is something that I think is crucial to self-development. Therefore I understand why this generation of Chinese only children are growing up with these negative characteristics. although these children are still talented and hardworking, Im interested in seeing how this generations attitudes will affect business team dynamics for chinas future economy.
ReplyDeleteGiven the size of China, I think the sample size is too small and the study is mostly concentrated on children from Beijing. Based on the study from one part of the country, drawing conclusion for all the children in the country would be an over-genralisation.
ReplyDeleteTill this point, one child policy may not have had big negative effects on economy but it is a certainty in the future. The number of aging population is growing and the percentage of children under 14 is decreasing every year. Beside this the sex ratio is growing as well. It is not a good sign and the policy definitely needs to be more flexible.
As an Asian kid, I agree with these negative characteristic of being the only child in Asian family. However, I do not think all wealthy Chinese families spoil their kids. Personally, I have many wealthy Chinese friends who are not dependent on their parents' money and power. They work hard and they do not act like a prince or princess . I think it is still too early to say that China is in economic risk because of less trusting, less trustworthy and less competitive children. Wealthy Chinese families work hard to be wealthy and they will not let their kids just sit there and enjoy it.
ReplyDelete