For the past half century, South Korea, Hong Kong, Taiwan and Singapore have averaged the highest consistent economic growth rates in the world. But in one vital respect these countries may have the worst record of investment in the future since homo sapiens evolved: They have the lowest fertility rates in the world. For economic growth, raising children is at least as raising new buildings.
a. Explain why the rapid growth rates of these Asian economies might be masking a misallocation of resources that will result in lower income per person in the future.
b. Explain the difficulties in balancing goals for immediate economic growth and future economic growth.