|Only so much wealth in the "pie."|
|The individual pieces of "pie" (wealth) can grow.|
Whether or not this growth will last for China or other rapidly growing economies is one thing that economists are considering, however. For example, the Chinese are currently saving at 50% as a population (the US saves lower than most other countries, at about 18% factoring in retirement, etc. People don't save when things are going well; remember the US recession in 2009? Prior to that recession, the US was at a negative savings rate for personal savings - spending more than they earn - however when the recession hit, people remembered the importance of savings and the savings rate began to increase again.). Personal consumption in China is pretty low, however as incomes begin to increase, the Chinese are expected to begin to want home ownership, social security, and health care, to name a few. As people begin to spend instead of save, it will also affect national economic growth, potentially causing a slow down. Just something to watch as well.