The Stagnation Trap: Deciphering the Economics of Tangping and Rat Life

The Erosion of the Social Contract

Traditional economic theory posits that investment in human capital—education and labor—yields upward mobility. However, in

, this fundamental mechanism has broken down. The post-reform era, characterized by explosive growth and entrepreneurial opportunity, has given way to a rigid structural bottleneck. High youth unemployment rates now signal a systemic failure to absorb a highly educated workforce, leading to a profound psychological and economic decoupling known as
Tangping
.

The Stagnation Trap: Deciphering the Economics of Tangping and Rat Life
“The Rise of the “Rat Life”"

From Lying Flat to Subterranean Existence

While the concept of "lying flat" represents a passive rejection of the rat race, a more extreme manifestation has emerged:

. This phenomenon describes a total withdrawal from the traditional daylight economy. Individuals opting for this lifestyle inhabit confined, often subterranean spaces, adopting nocturnal schedules dominated by digital consumption rather than production. It is not merely a trend; it is a defensive survival strategy against a high-cost, low-reward urban environment.

The Productivity Crisis of Disengaged Youth

Macroeconomic stability relies on the continuous replenishment of the labor pool with skilled, motivated workers. When a significant cohort of youth moves back with parents or adopts a

existence, the long-term impact on domestic consumption and innovation is severe. The narrowing of social mobility creates a ceiling that disincentivizes effort. If the marginal return on an extra hour of work is negligible compared to the skyrocketing cost of living, rational actors will naturally choose to minimize their output.

Geopolitical and Fiscal Implications

This demographic shift presents a formidable challenge for policymakers. A shrinking workforce that actively chooses non-participation threatens the fiscal base required to support an aging population. As youth reject the "996" work culture, the state faces a dual crisis of declining productivity and increasing social alienation. Addressing this requires more than just rhetoric; it demands a radical restructuring of the economic incentives that currently trap the younger generation in a cycle of stagnation.

The Stagnation Trap: Deciphering the Economics of Tangping and Rat Life

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