Why do Urban Chinese Households save so much Dissertation

Why do Urban Chinese Households save so much - Dissertation Example Life Cycle Hypothesis Theory, and Overlapping Family Models, as well as a Literature Review on basic economics will be submitted to help develop an understanding of the behavioral patterns of this section of the Chinese population. The paper will conclude in a futuristic manner, contemplating whether the phenomenon will continue beyond 2015, when it is projected that the present working population group would have aged, and seeking to retire. The reference sources were chosen from a wide field, so that the best views of the technical minds available could be extracted and used to arrive at the conclusions made. It also enable comparisons to be made to see if there consistency in applications. Where this is observed it is highlighted to serve as concept reinforcements. Thanks must be given to my Professors as well as others who have provided timely support to make this project a reality. A. Introduction It would seem superficially that the Chinese government had designed a program to generate an extremely high propensity to save among its population, as well as in the national economy, during the last 30 years of the history of the country, but this may be far from being true. Analysts and Economists worldwide have become engaged in finding the answers as to why the Chinese Urban Household is saving so much? China’s unprecedented economic growth between 1978 and 2007 has not been matched by the levels of economic reforms which would have stabilized its financial and insurance markets, according to Wei, Yi (2011). During this growth period, the country’s foreign reserve increased dramatically from $2 billion to $2.4Trillion- a1000 fold increase, and propelled the nation into the position as being one of the world’s largest foreign reserves holder (Wen, Yi, 2011). Chamon and Prasad (2008), reports that between 1995 and 2005 the average urban household savings increase by 7% to about one quarter of disposable income, despite the rapid economic growth, and low government capped interest rates offered by banks (Chamon, M. Prasad, E. 2008). Experts opinion as to why the Urban Chinese household has been saving so much include biological motivations, men engaging in marriage marketing, Confucian philosophical beliefs, social imbalance, government policies, economic uncertainties, sex ratio imbalance, urban household behavioral issues, market and economic variations. Models have been designed and developed to explain the behavior of urban Chinese households, but do they successfully account for all the variables and how they affect each other in different provinces, under different birth orders, the number of children, and the educational and financial status of parents, remains to be seen. The roles of the firms and the government regarding the wages paid to workers, as well as the removal of the benefits of the social net may also be the real reason why the savings patterns had developed under the puzzling eyes of the global experts. It is also worth contemplating whether the reliability of a model should

The necessity of Government Article Example | Topics and Well Written Essays - 750 words

The necessity of Government - Article Example This paper helps to provide an insight regarding renowned mine disasters that took place in the United states of America and how the presence of the government has been necessary in order to counter these disasters and keep the people together in a calm and dignified manner so that they are able to cope up with the effects of these mine disasters. The Centralia Mine disaster took place on the 25th of March in the year 1947, in the Centralia coal mine in Illinois. According to reports, the disaster killed around eleven people and was caused because the coal dust was ignited by a shot blown out of proportion, causing havoc and upheaval. During the time that the shot took place, around 65 workers within the mine itself were injured severely and died. (Drogin, Bob, and Nicole Santa Cruz) The Sago mine disaster on the other hand took place in the year 2000 in Sago, West Virginia and has been recorded as one of the worst mine disasters that the United States of America has been hit by or h as faced. According to this blast, around thirteen people had been trapped alive within the mine out of which twelve of them had been able to survive and make it out alive. The blast received a great amount of media coverage and press coverage by various news channels and newspapers. (Feds Blame Mine Operator for Fatal Collapse) In Utah, the Crandall Canyon Mine has been known for a long time for its supply of bituminous coal and in the year 2007, this mine suffered a collapse because of which six miners had been trapped within its confines. Even the rescue workers who were trying to uncover and find the trapped miners were found dead. The miners were never found and thus had been declared dead by the government within a matter of a month. (Roston, Aram) All these incidents taking place mean that there needs to be a certain existence of law and order with respect to taking proper care and caution of the resources that exist within the environment around society, and such action need s to be carried out by the government. Different mine disasters taking place during different points in history simply calls for the government not being responsible enough to take care of and call for action regarding doing something or taking certain precautionary measures for both the miners and rescue workers as well as the people living in nearby towns and villages. The main similarities between all the mine disasters that have been talked about above are the number of people that were killed as well as the fact that nothing was done in order to make the situation better for the people. The government is a very necessary element required within society especially during such times of need when the resources of the country are being utilized in a manner not befitting society. In this case, the mines are a part of the country and need to be handled with care on part of the government. The biggest question is why proper care was not taken in the later years after having experience d deadly mine disasters in the 90s already. It is important for a country to have a government that is able to carry out action in a manner befitting the people. The g