Economy

In free market economies around the globe the citizens between ages 20 and 50 are the producers and consumers. They are raising families and buy houses, cars, appliances, food and clothes. They work in the factories and farms where real stuff is made. Those between 50 and sixty five are at their peak earnings and they provide the capital with their investments in business and stocks. Those 65 and older withdraw their investments and buy government bonds and thus remove capital. Many countries like China are short on worker bees, those in the 20 to 50 group. The young people moved in droves from the country to the city and city folks have fewer children. Add to that a 35 year one child policy and you find China today in a bad situation. They have too many old people and too few workers to provide the promised old age benefits. Chinese people are mostly Han Chinese and they are not welcoming to foreigners. The same situation happened in Japan about 40 years ago but they took steps to intervene. Realizing they had too many elderly and too few youngsters they set up an economic plan that started manufacturing products outside the country, largely in the USA, and to sell the products in these foreign countries and bring home the profits to care for the old folks. The baby boomers in the US are retiring and creating a shortage of capital but reshoring will stimulate the economy and there are still a goodly number of working age people. This group can be supplemented by young people in Mexico. The industrial base will double in short order raising workers wages and supply chains will be shorted lowing transportation cost and oil and gas will supply the needed inexpensive energy. This will mean rapid growth accompanied by high inflation but in time things will settle down and most will have a comfortable life style.