Wednesday, October 12, 2005

Does China have too many People?

China has viciously attacked the growth of its population during the past 20 years, I guess. The "One Child" policy has been vigorously carried out. Women have to report monthly. They have IUDs forcibly inserted and an Xray every 3 months to make sure it is still in. And forced abortions for violators. So China dodged the feared population bullet, right? But China is on a program of economic growth. And the two policies have collided. A shortage of labor is emerging in some industries in some parts of China. Even the government's Xinhua News Agency says so:
China’s population is expected to peak at 1.44 billion by 2033 while the labor population is expected to no longer increase by 2011. However, the peak time came much earlier than expected thanks to that [sic] the national policy of family planning has worked and that the old-age population grow. As a result, the decline of the increase rate of the labor population has materialized in recent years. Statistics show the proportion of jobs and job hunters is increasing year by year in 117 cities nationwide, climbing as much as 95 percent in the second quarter in 2005 when compared with 65 percent in the first quarter of 2001. Xie believes the domestic labor force has already been driven from the stage of "limitless supply" into "limited surplus," and resulting labor supply gaps among some regions might occur throughout the country. Though employees consequently could receive higher pay, labor shortages may pose a new thorny problem, causing some economic growth slowdowns, Xie said.
Brian Schwartz at the American Thinker provides analysis:

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