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How plunging birthrates threaten national economies

May 1, 2023

The decline in birth rates is a phenomenon that is occurring all around the world. In many countries, the birth rate has been steadily declining over the past few decades, and this trend shows no signs of stopping. While some people may view a lower birth rate as a positive thing, there are actually many ways in which it can threaten national economies.

Table showing the birth rate of a few selected countries over the past few decades, the data is from the World Bank and is given as the number of live births per 1,000 people in the population

Country 1980 1990 2000 2010 2015 2020
Japan 12.2 10.7 8.4 8.4 8.1 7.9
South Korea 18.4 15.4 11.6 9.4 8.4 8.1
Italy 11.2 10.1 9.4 9.4 8.3 7.4
Spain 14.1 10.8 9.0 10.4 9.1 7.7
Greece 14.0 11.8 9.9 9.0 8.6 7.2
Portugal 16.7 13.6 11.3 9.8 8.5 8.3
Poland 16.3 12.8 10.3 9.7 9.8 8.8
Romania 20.4 16.4 10.7 9.2 8.8 8.4
Bulgaria 14.5 11.8 9.2 10.1 9.2 8.6
Croatia 14.8 12.3 9.4 9.6 9.4 8.4
Ukraine 15.4 12.1 9.8 10.7 10.3 7.4
Russia 13.6 12.0 9.4 12.4 12.9 11.4
China 18.2 21.0 16.1 12.1 12.1 10.0
United States 15.9 15.5 14.0 13.0 12.4 11.6
United Kingdom 12.7 12.5 11.7 11.5 11.9 11.1
Canada 14.7 13.1 11.8 10.9 10.6 10.9
Australia 16.4 14.2 12.4 12.4 12.0 12.0
Germany 10.3 9.3 8.4 8.3 8.3 8.2

One of the main ways in which a plunging birthrate can harm national economies is by reducing the size of the workforce. As fewer and fewer children are born, there are fewer people entering the workforce each year. This can lead to a shortage of workers in many industries, which can in turn cause wages to rise and prices to go up. In addition, as the population ages, there will be more people retiring and fewer people to replace them, which can lead to a reduction in economic growth.

Another way in which a lower birth rate can harm national economies is by increasing the burden on social welfare programs. As the population ages and fewer children are born, there will be more elderly people who need care and support. This can put a strain on social welfare programs like Social Security and Medicare, which may not have enough funding to support a growing elderly population. In addition, as there are fewer children being born, there may be less funding for education programs, which can harm the economy in the long run.

Furthermore, a plunging birthrate can harm the overall health of a nation’s economy. As the population ages, there will be a decrease in the number of people who are able to start and run businesses. This can lead to a decline in entrepreneurship and innovation, which are key drivers of economic growth. In addition, a shrinking population can make it more difficult for countries to attract and retain top talent, which can make it harder for them to compete in the global economy.

There are many factors that can contribute to a declining birth rate. One major factor is the increasing cost of raising a child, including the cost of healthcare, education, and housing. Another factor is changing social norms, as more people choose to delay starting a family or have fewer children. In addition, some countries have policies that make it difficult for people to have children, such as restrictions on maternity leave or a lack of support for working parents.

In conclusion, a plunging birth rate can have serious consequences for national economies. From a shrinking workforce to a burden on social welfare programs, the effects of a declining birth rate can be far-reaching and long-lasting. As such, policymakers and individuals alike should consider the impact of their decisions on birth rates, and work to create policies and programs that support families and promote a healthy population. By doing so, we can help to ensure a prosperous future for all.

Filed Under: Reports Tagged With: plunging birthrates

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