More Kids, More Careers: Relax the One-child Policy?

More Kids, More Careers: Relax the One-child Policy?
May 21, 2009 By eChinacities.com

Recently, Guan Tongwei, professor of finance at the Guang Dong University of Finance, stated that suitable adjustments to China’s one-child policy to allow the birth of second child in financially secure urban families could be considered as an effective method to expand short term domestic demand.

According to Guan, due to the income disparity between rural and urban areas, higher birthrates in the rural areas cannot be supported in the short term by the current amount of disposable income, whereas raising the birthrate to boost consumption by urban citizens is more realistic because of the greater wealth of urban residents.

One child policy Chinese child
Photo: romainguy

The second reason Guan is proposing relaxation of the one-child policy in cities is to create jobs. According to the lowest estimation, one new-born baby can create two positions, if 10 million babies were born in the next year in large and medium-sized cities, there would be 20 million new jobs. If 15 million babies were born, the emerging unemployment problems would essentially be solved.

Finally, at present, the Minimum Living Standard Security System is comprehensively carried out among urban workers in China (the system provides workers with salaries below minimum living standards with a stipend), so on such basis, relaxing the one-child policy in urban area to permit a second child is pleasing to most families. Hence, the loosening of regulations in urban areas would provide a realistic and sustainable growth in consumption and lead to sustainable development of the society and economy.

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