China's Two Child Policy and the Which Way Is Up Problem in Economics

Economists constantly have difficulties figuring out what problem we are trying to solve. The NYT's discussion of the Chinese government's decision to switch to a policy that allows most families to have two children, instead of just one, provides an excellent illustration of this situation. At one point the piece explains the policy shift:

"Now the party leadership has acted more forcefully, apparently in the hope that a burst of children will replenish the nation’s work force and encourage...