Have you ever heard of the butterfly effect?
It's the idea that things that appear small can have an outsized impact on complex systems like factories. That's something that folks at Nestle learned recently, the food giant announced plans to close an Irish factory because of a change in China. About 500 People will likely lose their jobs.
Why?
The factory makes baby formula and by all accounts to Chinese birthrate is in freefall. Nestle claims that the number of newborn babies in China has declined sharply from some 18 million in 2016 to about 9 million expected this year. That is dragging down overall demand in the parents of those 9 million children are more likely to use Chinese products.
The birth rate drop is the latest echo of yet another butterfly effects. China's insane one child policy, which went into effect in 1979, ironically, because of fears of overpopulation. It was repealed in 2015.
But the problem is, it takes 30 years to have more 30-year-olds to have all the babies.
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