Reasons Behind The China’s 3 Child policy

If you think it is a joke to laugh about China’s 3 child policy. If you think they are doing it to cover the loss of lives due to coronavirus. Then you are wrong.

China has periodically been futuristic. Be it the one-child policy or then changing it 2 child policy in 2015 furthermore, now the three child policy after so many deaths due to coronavirus.

Nobody knows the true numbers of death in China. We can’t be sure of the number of death all over the world.

There is a deep aspect to this policy which is an economic aspect.

As an employee of any company or as a consumer, some facts are going to affect us long term. 

China is increasing its birth rate because there is going to be a lack of a consumer market. As with the death of many, the consumption of goods has gone substantially down. Therefore, imagine the following decade, there will be a serious shortage of consumers. Without consumption, there would be no demand.  

Without demand, there would be a downfall in the industrial market for production. 

Less production means more joblessness.

More jobless means economic depression. 

Everything would be cheap yet you will not be able to buy it because the value of money would be high.

So sitting and reading about China’s three child policy also easily wiping it out of your brain.

Don’t do that, they are good at speculations and each of their decision is economically oriented.

The current Indian Economy.

Now let’s come to its closest country, India. India has already announced cheap home loans and business loans since the beginning stages of coronavirus. Now imagine. People will buy homes and start a business in this economically depressed and low consumeristic market.

Will they survive? No, they would just lose homes and business. 

Now let’s come to defaulters. Due to coronavirus, the loss of jobs and suppression of the startups is beyond measure. 

These startups are the defaulters of business loans in banks. Now imagine the number of defaulters all over India. Now presume the number of defaulters all over the world. The world economy is going to crash very soon. 

Promptly, link this to the British Prime minister’s statement, he said they will vaccinate everyone by the end of 2022. Now imagine the amount of damage economically would be staggering by the end of 2022 if it happens by then.

What must we do to be out of this trap?

What we can do? If you think it is a medical emergency, it will take its course to end. 

Presently, the most important thing to do right now is not to invest. Realistically speaking keep the money or the cash flow. 

The value of the cash will be higher as no business will have cash flow due to a shortage of consumers. The amount of consumption would also decrease. 

Do you think Pharma companies are at the gain and being in a pharma industry would be profitable in future? The pandemics happen scarcely. The pharma company even today cannot meet the demands of its consumer. So, if you think they are getting super-rich then think about this.

After this pandemic for the pharma companies, the most significant consumer are the old people, who have died maximum in this pandemic. Yes, pharma companies main customers were the people who are above 50. When the pandemic is over, the eldest customers for medicines wouldn’t be alive to use its products. 

So what do you think after joining the dots? 

It’s hard to speculate the market as to what kind of consumers will be left to start a business. As there would be a lack of money, fewer competitors, fixed prices, fewer jobs.

Some things you must think before entering into a debt post-pandemic:

Don’t enter into new loans as the interest offered by the government is low. Because it’s a trap.

Beginning any business without knowing what type of demographics will be left for your new business is too risky. 

As we don’t know what kind of consumers will survive to buy your products.

So China said yes to the 3 child policy because they will need skilled labour when the market will flourish after one or two decades as in the closest days there would be no consumeristic market.

 What are your thoughts about the market and business? I would love to hear your perspective in the comments below.

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