U.S. fertility rates have fallen to just 1.6 per woman. This has led some to fear that the United States may face the same kind of demographic collapse that is besetting Japan.
While some may cheer that this makes overpopulation less of a problem, low fertility rates translate to serious economic problems. As demographer Peter Zeihan notes, people in their 20s and 30s spend lots of money, people in their 40s through 60s save money that can then be used for investments in improved productivity, but older people large retire from the economy. The young consumers drive economic growth and the middle-aged savers fund that growth. If the ratio of younger people to older people falls too low, then the economy stops growing, which reduces economic mobility and security. Continue reading
