>"4 grandparents" problem - no, when a couple marries, the woman's parents are not (generally) cared for by the new family."
I don't see how that changes his argument. If you have a girl then you now have 0 grandchildren to help you when you're old, thus logically causing you to save even more than you would have.
>The savings rate is due to thousands of years of constant invasion, mass slaughter, starvation and death. Look through Chinese history and you will see more than a few "mass extinctions" (80%+ death rates). This leads to a saving mentality, it's embedded in the culture (and not a new thing at all).
Europe has had near extinction events and invasions as well, so I don't think you can really just point to that as the total explanation.
Additionally from what I've read Chinese savings rates have been increasing, so it can't be explained as merely cultural.
>Personal savings are not at all used in this way.
How are banks investing the money, then? If they are investing the money in such a way that it frees up other funds for the government to invest elsewhere then it has the same net effect.
I don't see how that changes his argument. If you have a girl then you now have 0 grandchildren to help you when you're old, thus logically causing you to save even more than you would have.
>The savings rate is due to thousands of years of constant invasion, mass slaughter, starvation and death. Look through Chinese history and you will see more than a few "mass extinctions" (80%+ death rates). This leads to a saving mentality, it's embedded in the culture (and not a new thing at all).
Europe has had near extinction events and invasions as well, so I don't think you can really just point to that as the total explanation.
Additionally from what I've read Chinese savings rates have been increasing, so it can't be explained as merely cultural.
>Personal savings are not at all used in this way.
How are banks investing the money, then? If they are investing the money in such a way that it frees up other funds for the government to invest elsewhere then it has the same net effect.