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Problems Facing China’s Growth

In: The Shrinking American Middle Class

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  • Joseph Dillon Davey

Abstract

If we assume that China will continue to graduate four times as many college students as the United States during the next decade and also take into consideration their current announced goal of making half the Chinese population literate in English within two decades, then the factor equalization theorem would predict rising wages in China and a disastrous drop in the wages of English-speaking college graduates in the West, including large numbers of middle-class Americans. But what if the wheels come off the Chinese juggernaut? What if the Chinese miracle disappears as rapidly as it began three decades ago? There are formidable problems facing China, and there is no guarantee that one or more of them will not be insurmountable.

Suggested Citation

  • Joseph Dillon Davey, 2012. "Problems Facing China’s Growth," Palgrave Macmillan Books, in: The Shrinking American Middle Class, chapter 0, pages 85-97, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-29507-1_7
    DOI: 10.1057/9781137295071_7
    as

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