Why China Wants Its Young People to Spend More Money, But They Resist

The Chinese government wants the new generation of consumers to spend more, for the common good, despite the numerous economic challenges facing the country. Authorities argue that low domestic consumption among a large segment of the population is hindering growth, but most recent graduates have more reason to be cautious. Unemployment among young people has hovered around 20% for some time; those who do have jobs fear losing them, and the ongoing housing crisis can make owning a home seem impossible, especially in major cities. This uncertainty is leading many young people in China to embrace frugality, and social media is rife with tips on how to live on a shoestring. The Transformation of the Economic Model A major fear among recent graduates in China is that the nation is undergoing a complex transition from being a large-scale producer of economic goods to becoming a technologically advanced economy. Furthermore, many of these emerging industries do not need that many employees.