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Critical Analysis - Admission/Application Essay Example

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Date Critical Analysis of the article: China's Coming Baby Boomlet Will Deliver a Boost The China’s population has been a subject of discussion since time immemorial. This is because China is the most populated country worldwide leading to an impact of its population on both socio-economic and political developments…
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Critical Analysis

Download file to see previous pages... The legal position according to the article is that the China's top officials at the Third Plenum last week announced that families could have a second child if one of the parents is an only child. The current rules allow individuals to have a second child if both parents are only children in their families (Gu 2013, p1). Nevertheless, the Chinese middle class who live in China’s wealthy urban areas will majorly feel the impact. According to Merrill Lynch, it is in such localities where more than half the families with women of childbearing age will qualify to have another baby under such policies. According to James Liang, a Pecking University economic professor who has been vocal about the abolishing of the one-child policy rule reiterates that the new rule is likely to elicit a birth of 2-3 million births a year. According to this article, the baby Boomlet is viewed to maliciously worsen the China’s demographic dilemma. It is anticipated that the working population would shrink in the future resulting into a strain in both the pension and health-care systems (Gu 2013, p1). This is based on the assumption that individuals will get richer and hence want fewer children that will voluntarily regulate the birthrate with or without restrictions by the government. I am of the contrary opinion, my premise is that just like in any world economy, demand is vital, and the boom has the likely impact of contributing to the growth of the economy due to its impact on local demand. My evidence for such an argument is hinged on the fact that since 1978 structural changes have made china shift from a centrally planned economy to a market based economy and has since witnessed rapid social and economic development. The GDP growth rate witnessed since this time has consistently been 10% every year something that has seen over 500 million people being lifted out of poverty. The additional birthrate of 2-3 million babies yearly due to the new rules is therefore likely to create more demand for goods and services a factor, which has the impact of driving faster growth of the local industries and infrastructure, provision of employment opportunities (Owen III 2010, p104). Additionally, the kids are likely to even provide more capital that is human when they grow up. It is worth recognizing that China with a population of over 1.3 billion people is the second largest economy in the world after the US. In 2012, China’s gross national income per capita of $6,091 ranked 90th in the world of China. This is largely attributable to the boom as the growth rate in terms of the numbers is quite large. Actually, it is twice the number of annual births in Japan and half the total number of births in the US. Investors have already done their calculations and as they are presented according to a survey, it costs $79,000 to raise a child from cradle to college and this includes costs such as food, education, and healthcare. With 10 million children in the next 5 years the figure will be $790 billion additional spending on a lower value (Gu 2013, p1). The investors are already jogging to reap from the new outlays. The companies manufacturing stocks such as diapers and baby formula as well ...Download file to see next pagesRead More
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