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China's One-child Policy~
Sunday, 30 March 2014 | 05:50 | 0 comments

Based on the given passage, it is evident that Chinese couples based in China in the past were allowed to have as many children as possible, they were given the freedom to handle, to manage huge families. However, due to social concerns, the government passed a new law, indicating for all couples in China to have only one child in their family, resulting in the decrease in strength of Chinese households. This law was for the government to handle the population of China smoothly, as the huge number of civilians in the county was just too much for the country to bear. They had to restrict the number of births in the country, thus allowing each family to bear only a single child. 

When this new law was enforced, the birth rate in China fell from 37 to 20 per thousand, infant mortality declined from 227/1000 births in 1949 to 53/1000 in 1981, and life expectancy increased from around 35 years in 1949 to 66 years in 1976. Until the 1960s, the government urged families to have as many children as possible, believing that population growth will empower the country, preventing the emergence of family planning programs earlier in China's development. The Chinese population grew from around 540 million in 1949 to 940 million in 1976. The Chinese government were unable to handle such great birth rates, they were unable to accommodate the vast amount of people living in the country. Later, citizens were encouraged to marry at later age and have only two children. Although the fertility rate began to decline significantly, future population growth still proved overwhelming and the one-child policy was finally announced by Chinese leaders. The one child policy had been planned as early as 1977, although it was not mandated nationwide until 1979, to well-balance the population of Chinese in China. Now, with a huge decrease in figure of the new generation in China, there will be fewer Chinese youths, young Chinese people to roam the vast lands of China, to take over the roles of their predecessors to rule their country well. With a decrease in the number of youths taking over the country, the welfare of China would be at stake, and China would soon have to meet the problems an aging population. There will be more elderly and fewer youths in China, this phenomenon might cause future generations to struggle to meet an ever increasing number of retired workers and pension commitments. China could also suffer an increase in the dependency ratio. If the retirement age remains fixed, and the life expectancy increases, there will be relatively more people claiming pension benefits and less people working and paying income taxes, it will require high tax rates on the current, shrinking workforce. Also, Increased government spending on health care and pensions. Also, those in retirement tend to pay lower income taxes because they are not working. Those in work may have to pay higher taxes. This could create disincentives to work and disincentives for firms to invest, therefore there could be a fall in productivity and growth. An aging population could even lead to a shortage of workers and hence push up wages causing wage inflation. Alternatively, firms may have to respond by encouraging more people to enter the workforce, through offering flexible working practices. An increase in the numbers of retired people will create a bigger market for goods and services linked to older people. Higher savings for pensions may reduce capital investment. If society is putting a higher percentage of income into pension funds, it could reduce the amount of savings available for more productive investment, leading to lower rates of economic growth. 

All in all, the one-child policy in China has caused many problems and changes to its country's economy, it would definitely affect China's society drastically, in years to come.