1/- Very interesting article. One of the most obvious ways to boost the consumption share of China’s GDP sustainably would be to provide adequate pensions for the aged. Not only would their spending rise almost one-for-one with their pensions, but... scmp.com/economy/china-…
2/- working-age Chinese would feel less pressured to save for their parents and for their own retirements, and so would also spend more.
This won’t be cheap – if rural pensioners for example were eventually to receive one-third of what urban pensioners get (and urban...
This won’t be cheap – if rural pensioners for example were eventually to receive one-third of what urban pensioners get (and urban...
3/- pensioners don’t get much), it would cost nearly 1% of GDP – but because more consumer spending would generate more productive private-sector investment, it would be better for the economy, and more labor intensive too, than spending an equivalent amount of money on...
4/- non-productive public-sector investment. While it might take a long time to work up to an efficient pension system, as one of the most rapidly-aging countries in the world China really has little choice but to come up with something soon.
This may seem primarily an...
This may seem primarily an...
5/- internal issue for China, but in fact the US and the rest of the world have an interest in China’s pulling this off. It would help rebalance the Chinese economy towards more consumption and less savings, and so would allow China eventually to contribute to global growth.
