Rise Of Second Rich Generation In China - Essay Example

Rise Of Second Rich Generation In China China is one of the fastest growing economies in the world today. The past thirty years has witnessed a great rise in the development of industries, an aspect that has promoted a rise of rich individuals in the country. The children of these rich entrepreneurs are mainly in their twenties. Thrift spending and very lavish lifestyles characterize these children, otherwise called the second rich generation. This name emanates from their fathers who were the first generation of rich people in the country. One major character that outstands in this generation is that they are not focused on generating income. This means that they are mainly reliant on their families, which are filthy rich. Through this character, a serious economic challenge comes up, the economic future of the country stands to be threatened if these people are consumers and are not working to expand their parents businesses. However, through an interview with one of them I realized that though they spend, they have a view that one day they will engage in income generation. The second rich generation in China poses a possible collapse of the Chinese economy in the future. The building of an economy requires the input of all the stakeholders, including all the citizens in a country. China has grown to be one of the giant economies in the world courtesy of its industrialization that took place in the 1980s. Economic reforms and policies made it possible for Chinese citizens both in the private and public sector to expand their businesses (Zhou, 2011). These people have facilitated to a great deal the realization of a strong economy. It is because they were hardworking and embraced a spirit of work that they were able to achieve the current economic state in china. On the other hand, their children have decided to sit back and eat what their parents made. This is a very dangerous scenario given that there is no income that is generated from what they do. While every citizen has an obligation of contributing to nation building through engaging in an economic activity, this group does not care. Economic stability can be fostered through consumption of local goods in order to promote the local industry. The second rich generation does not have much treasure of the local commodities and services. For example, most of them spend their time in the United States driving flashy cars and consuming highly expensive products. This means that there is a flow of resources from China to United States just to take care of unproductive individuals living expensive lifestyles. Economic development in China has been consistently facilitated by the two generations of economic activities; manufacturing and service industries. After the development of the economic reforms and policies in China, which boosted the economic activities in the country, the manufacturing sector came out strongly. The first rich generation comprises of people that are currently in their forties, focused on manufacturing sector and were able to make much money. The second generation came up because of the service industry boom, this comprises of individuals in their thirties (Xiang & Teng, 2007). The individuals in the twenties comprise majority of the second rich generation, these people cannot be identified with a given industry. Through my interview with one of them, it was clear that they do not feel the weight of the economic situation of China in the future. They are unable to identify a specific industry in which they can be able to engage with. This means that the future of Chinese economy weighs on the balance. They are draining the economy while no additional economic output is obtained from them. Luxurious lifestyles are hard to maintain and are costly to nay economy especially if it is not the one producing the luxuries. Chinese second rich generation spend much of their resources on luxury. Most of the times, they spend their money outside the country. This means that they earn other countries income while theirs loses. When this trend continues over an extended period, the economic implications are significant. Mind you, these people do not make any effort of generating extra income, apart from what their families have to offer. Luxury has not been common concept in the Chinese culture; however, this generation has made it possible to get to the country (Kan, 2013). This has been able to create a huge disparity between the rich and the poor. The education system in China favors the second rich generation individuals since they are able to get access to the best schools and facilities. The quality of education especially among those in rural areas is very low hence; they are not able to find their way to institutions of higher learning where they make their impact. On the other hand, the second rich generation does study but are not willing to use their knowledge in building the economy. The money that is spent by the second rich generation can be used as capital for investment opportunities. There is a lot of money that is spent lavishly by this generation of individuals that could be used as capital to generate more income. However, all these resources are spent on things that please an individual while comprise the economic output in the future. The young rich generation is not mindful of the poor individuals in the country. In the same way they are not interested in knowing the economic situation in the country. This poses a major challenge in the realization of the goals that have been set by the Chinese government. In conclusion, the young rich generation of China is a threat to the economic future of China. They spend but are not keen on generating any income. Most of their expenses are on luxuries, which are not mainly based in China hence, they earn other countries foreign exchange. They also deny the locals opportunities since they have access to the best facilities. Their lack to generate income makes the country have a negative trend in economic development. References Kan, K. (2013). The New "Lost Generation": Inequality and discontent among Chinese youth. China Perspectives, 2013(2), 67-73. http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?sid=143fdde8-c95f-47b4-8f86-4d499e33a871%40sessionmgr110&vid=1&hid=110 Xiang, B., & Teng, B. (2007). THREE GENERATIONS OF CHINESE ENTREPRENEURS: WILL THE THIRD GENERATION BE AS SUCCESSFUL? Ivey Business Journal Online, 71(8), 1. Retrieved from http://search.proquest.com/docview/216185364?accountid=45049 Zhou, Q. (2011). Luxury market in China. Metropolia. Retrieved from http://www.theseus.fi/bitstream/handle/10024/38607/Luxury%20Market%20in%20China_QuanZhou.pdf?sequence=1 Read More