Friday, November 24, 2006

The Anxiety Kingdom

There is a story in today's Post that, in microcosm, describes China's growing economic problem: Unemployable college graduates. Not because they lack the skills to get decent jobs (the jobs their parents assume college will open the doors for them to get), but because China's economic and regulatory environment make it too hard for the business to start to provide an opportunity to the young people with energy and creativity.

Like so many things, there's a catch. China can't afford to simply free up the restraints on their economic and business sytems. Why? Because it will tear apart the economy from too much economic growth. It's currently caught between a rock and a hard place, both of it's own making: it needs as many college graduates as possible to provide upward mobility for a population enormously in need of hope; but at the same time it has to slow (to a modest 8 or 9%)the economic growth so that the economy doesn't destabilize the whole country.

I'm a bit worried that we're going to have more of this kind of news before we hear less.

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