The other economic quandary facing the world that begins with the letter D is demographics: birth rates are declining. From Caitlin Cheadle at the Visual Capitalist via zerohedge.com:
Total fertility rates, which can be defined as the average number of children born to a woman who survives her reproductive years (aged 15-49), have decreased globally by about half since 1960. This has drastically shaped today’s global economy, but as Visual Capitalist’s Caitlin Cheadle explains, a continued decline could have much more severe long-term consequences.
If the world has too many elderly dependents and not enough workers, the burden on economic growth will be difficult to overcome.
Fertility Rates Start to Decline
First, it’s important to address some of the reasons for these falling fertility rates.
In developed nations the introduction of commercially available birth control has played a large role, but this also coincided with several major societal shifts. Changing religious values, the emancipation of women and their increasing participation in the workforce, and higher costs of childcare and education have all factored into declining fertility rates.
Birthrates Wane, Economy Gains
Initially, reduced child dependency rates were actually beneficial to economic growth.
By delaying childbirth, men and women could gain an education before starting a family. This was important in a shifting labor market where smaller, family-run businesses were in decline and a more skilled and specialized labor force was in demand.
Men and women could also choose to start their careers before having families, while paying more in income taxes and enjoying the benefits of a higher disposable income. Increased spending power creates demand, which stimulates job growth – and the economy benefits in the short-term.
To continue reading: Fertility Rates Keep Dropping, And It’s Going To Hit The Economy Hard
