Chinese's tenendcy to over-save and the effect on the economy.?

Question

Doing a project for Econ, and I was hoping someone could lead me in the right direction.

I have recently read an article about China's overtenendcy to save and how this impacts the average family's consumption (i.e. lowers it). Obviously, this has negative effects on the economy. Some of the causes are the non-existance of a (secure?) pension plan, and the insane price of education vs. the lack of (good) public schools (along with the increased importance on education).

Does anyone think that these two problems are not as bad as they are made out to be (saving too much for future, and for education)? Are there problems that I have not listed that cause over-saving?

Answer 1

I think you are overlooking one major economic aspect.

There are something like 1.3 billion Chinese.
Four times the number of people than in USA, within a much smaller geographic area than the USA. If the Chinese consumed resources at the same level those in the USA do, China would quickly collapse from lack of resources.

The Chinese family unit is also a bit different, in that they avg 1.2 children per household, compared to USA 2.6 kids per household. As such, through inheritance, the next generation of Chinese will be more wealthy than will the next generation of American. Several hundred years ago, it was this same concept of saving and wealth building through inheritance that made Britian that power that it was.

Simplistic econ models that merely look at spending habits are incomplete and moronic, given the rate at which world resources are being consumed. The future will center around sustainable business practices and a much greater degree of consumer responsibility.

BTW, anyone who has written an article that suggests that China is not a global economic power has their head clear up their....

Answer 2

If the united kingdom decrease decrease back to 2% of its cutting-edge CO2 emissions, the version would be fed on by China in 2 years at its cutting-edge fee of commercial enhance. Bob's no longer far off, the certainly technological information in the back of worldwide warming & climate exchange is in keeping with an extremly small timeline in planatery words. jointly as we are able to are looking forward to that the effect does no longer be too solid for a large variety of human beings & different cutting-edge inhabitants of the planet, in terms of the planet itself this could be an entirley organic cyclical technique it particularly is initiated by any variety of events (asteriod effect, huge volcanic pastime, events of planatary inhabitants). very few human beings look thinking the concept that we are certainly unfavorable the planet, as apposed to the inhabitants. BlueRat - that relies upon upon your viewpoint, some inhabitants would thrive & prosper, some would exchange into extinct & some would be marginalised. BlueRat - in all hazard no longer all human beings would exchange into extinct, worldwide warming could stave off yet another ice age, which might completely decimate substantial factors of the northern hemisphere. In united kingdom words we see approximately 20,000 human beings a three hundred and sixty 5 days die each and every wintry climate through hypothermia, this would be critically decreased if we've warmer winters, this needless to say could be offset by deaths through heatwaves in summer season. we could continuously no longer be so smug as to think of we are the main mandatory creatures on earth, we are on the authentic of the nutrients chain purely by our own standards - artwork, technologies, drugs, philosophy, etc.. if a distinctive stand exchange into used - say inhabitants then we are an prolonged way down the record in the back of the bugs.

Answer 3

The chinese make very little money compared to the people in the united states. Products there are also low in cost. They have less of a comsumer approch to life and do not have all the "nessary" items that we have.

Answer 4

WRONG CATAGORY