Single child families are economically efficient  The one child policy is economically beneficial because it allows China to push its population growth rate well below its growth rate in GDP.  This has allowed the standard of living in China for the average Chinese citizen to improve significantly since the policy was implemented. Specifically speaking, since 1978 the income of the urban population in China has increased tenfold. Per capita housing space has also increased both in towns and in rural areas allowing Chinese people to enjoy a higher standard of living.  Further, the individual savings rate has increased since the introduction of the One Child Policy. This has been partially attributed to the policy in two respects. First, the average Chinese household expends fewer resources, both in terms of time and money, on children, which gives many Chinese more money with which to invest. Second, since young Chinese can no longer rely on children to care for them in their old age, there is an impetus to save money for the future.  On top of this, the one child policy has also been instrumental in the eradication of poverty in China. Often, the greatest problem with poverty is that families grow to unsustainably large sizes and as such the entire family is forced to be hand to mouth. However, the one child policy prevents this from happening and as such allows for the single child to be educated properly without providing too much strain on the family. Hence, by improving educational attainment and by reducing the financial pressures bearing on poor families, the one child policy has contributed significantly to reducing poverty within China.1  1 “Family Planning in China.” Information Office of the State Council of the People’s Republic of China. 1995.