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The old population will also need to consume stuff and services. And the younger people can make it. China's fundamentals are fine. They just need to allow mor
by cyberax 2y ago
The old population will also need to consume stuff and services. And the younger people can make it.
China's fundamentals are fine. They just need to allow more low-level business activity. It's easier to start a factory compared to a neighborhood café.
- 39896880 2y agoPeak consumption for a population is 45-54, when income is highest and people are having their 1 kid. Once retirement hits income is generally fixed as people rely on pension or savings. They also depend more on state services like healthcare. In China, this also means depending on their 1 child. It’s not really possible to say “China’s fundamentals are fine” because China’s fundamentals look like nothing the world has ever seen. It’s not clear they have the leadership to navigate it.
- cyberax 2y agoSure, but China has huge unemployment _and_ under-consumption. This means that the economy is not well-aligned with the needs of the population. The fix for that is long-known: liberalize the business environment and let the market settle. The question about the leadership is right, though. I'm not sure they _want_ the market to win.
- 39896880 2y agoThe time to start a business is in your 20s, before you have a kid. Unfortunately, China runs short of these. The largest demographic bucket is 50-54 years old. The second largest is 65-69. The 20’s are 7th and 8th… https://www.statista.com/statistics/1101677/population-distribution-by-detailed-age-group-in-china/ https://www.statista.com/statistics/1101677/population-distr...