China’s Changing Economy Is Changing Everything

Despite my inability to find anything on it through Google, I am convinced there was a TV show (or maybe a movie) with a character who, I believe, after getting completely dumped on would rise up and fight back, but not before first saying “Now that changes everything.” What show, what movie, what character? I thought of that guy today while reading an interesting post on Danwei, entitled, “Finance and Family Values or, How I Learned to Stop Worrying and Love My Kid.” The post/article was written by Jonathan Rechtman, a freelance writer based in Dalian, whose “writings on China, language, life, and philosophy can be found at The Art of Living.” The thesis of the post is that economic stability is changing China’s family values and, in particular, the parent-child relationship.

As the parent of two kids, I could not help but think how obvious this should be, while also thinking it had never occurred to me to apply it to China. Seems that good insurance and a retirement plan are changing the reason to have kids from security to love:

In comparison, household income did not have a large influence on the motivation for having children. The use of modern financial products was a much more decisive factor, which was something we didn’t expect.

Get it? Love has nothing to do with how much money you make…it’s all about your 401(k).

But the fun doesn’t stop there. Financial tools not only affect why parents have kids, but how they interact with them as well. Retirement plans also seem to be punching a few more nails into the coffin for Confucianism.

When you look at the style of communication between parents and children in Shanghai, Beijing, these big cities, you’re going to find…it’s not a top-down, “I give the orders” kind of relationship. On the contrary, you’ll find more parents are using a very “equal” method of communicating with their children, trying to create a heart-to-heart dialogue. This obviously runs contrary to the Confucian hierarchical system, is essentially contrary to Confucian traditions.

Chen goes on to note several other side effects: less stifling of children’s individuality, greater self-dependence for both parents and children, a broadening of people’s economic spheres, the wonders go on and on.

The bottom line is: more freedom.

This, essentially, is what Chen’s work is focused on: how finance and the market economy is making Chinese people freer. Free enterprise, free trade, and yes: freedom from Mom and Dad.

The most important role being played by financial markets is their ability to liberate individuals from their reliance on authoritative organizations, whether they are households, churches, or governments. They no longer have to be subordinate to these power structures to survive.

Someone should study the effect of having to add your kid to the car insurance policy too.

Source: China Law Blog

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