Monday, October 10, 2005

Is China going to run out of workers?

The American Thinker is one of my favorite websites and carries a lot of interesting, and very thought provoking ideas and information.

One article today suggests that China's one child program is, in just a few years, going to create a shortage of workers, resulting in wages going up, ending the seemingly limitless supply of cheap labor.

I cannot say that it will be soon but this policy of one child is going to be a nail in the coffin of the Chinese economy. Look at the problems we are having with our pensions, when workers still outnumber retirees about 3 to 1. Now China is having fewer total babies every generation which is going to result in a time, possibly within a generation, when China will have more retirees than workers. This pension system will then be an economic nightmare. I think that part of their rush to get a world-class economy going is to help absorb the impact when this happens but that is only going to put off the inevitable.

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