This video from Australia's public broadcaster ABC News does a better job at explaining China's current economic meltdown than anything else I've read or seen about it.
The root of the problem is China's previous one child policy which lasted for about three decades. Though other factors certainly contributed to it.
Indirectly the demographic situation in China raises some issues which deserve more attention.
The conventional wisdom is that population growth is necessary for a healthy economy. But when a country achieves a certain level of prosperity, the birthrate tends to level off.
So one question which economists should address with more urgency is: Can a country, or even the world, maintain prosperity with a largely constant population?
Obviously human population cannot grow endlessly, that certainly isn't great for the environment or the climate.
The old and endless arguments over capitalism and socialism are ultimately linked to the concept of unending population growth. Such talk needs to be supplanted by discussion and research on how to maintain prosperity in an environmentally friendly way for a consistent population level while respecting democratic norms.
That latter bit about democracy is vital – and not just for touchy-feely reasons. It was the autocratic Communist Party of China which implemented the heavy-handed one child policy and encouraged a culture of mendacity which led to the current crisis. Any system which does not respect democratic rights is doomed to failure in the long run.
PROPS TO ABC AUSTRALIA: Just want to repeat my previous praise for ABC News Australia – the source of that excellent vid. The country punches above its weight with news and public affairs programming from its public broadcaster. It deserves a place on everybody's news menu. They have an app as well as a major presence on YouTube.
ABC News (Australian Broadcasting Corporation)
