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To: Amy J who wrote (24657)10/19/2004 8:11:35 AM
From: Elroy JetsonRead Replies (1) | Respond to of 306849
 
China's "one child policy" has freed up capital which would have been used to expand facilities just to keep up with population growth. This surplus capital has been able to improve the standard of living and invest in productive capacity.

However, as you note, this comes with a price. At some point in the future, each worker will be supporting roughly two retired persons. Perhaps their giant hoard of US Treasury bonds will prove useful at that point, even though the value of each US Dollar will be greatly diminished by that time.



To: Amy J who wrote (24657)10/19/2004 12:16:13 PM
From: bentwayRead Replies (3) | Respond to of 306849
 
The Chinese "Social Security" is different from ours. The elderly parents often live with the children, or are maintained by them. They respect and value their elderly much more than we do in the west. For the vast majority Chinese, it would be unthinkable to abandon their parents, to leave them to their own devices.


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