An
economic system is a structure built for allocating resources and exchanging
goods and services; each country has designed their own economic system.
The
Chinese economy is perhaps one of the best; even though China had an average
start, it stands proud today with a rising GDP rate. Capitalist market
strategies helped the Chinese economy grow to a massive extent.
Although
unemployment and poverty figures are going down there are some harmful effects
of this economic growth. China is experiencing a rise in income inequality and
on top of that there is a lot of pressure on China's power infrastructure as
demand for power has never been this high before. Furthermore, the
banking sector of China is suffering as people are taking loans and not
repaying them. Surprisingly, unemployment is still haunting China because
machines are replacing labor – however, this technological unemployment isn't too high and the overall amount of unemployment is decreasing.
What
does this mean for China? The growth in Chinese economy is no doubt beneficial,
but China should pay attention to the problems at hand.
Source: http://www.economicshelp.org/essays/problems-chinese-economic-growth/
1 comment:
I agree that economic growth has both advantages and disadvantages. Looking at China, however, don't you think that the pros of economic growth clearly outnumber cons? Nevertheless, it is right to say that China should focus on the shortfalls to experience maximum benefit.
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