Friday, September 13, 2019

The baby crisis

The developed world needs more babies. By 2100, the U.N. predicts that nearly 30% of the population will be made of people 60 years and older. Life expectancy also continues to increase steadily, which means those dependents will be living even longer.

In a trend that has some demographers worried, the birth rate in the United States dropped to its lowest level ever in 2016. The fact that the all-time low fertility and birth rate puts the United States population below the “replacement level” — the balance point between births and deaths at which the population exactly replaces itself from one generation to the next. If the fertility rate falls too far below the replacement level, there is a danger that the nation will lose the ability to replace its aging workforce, leaving it unable to generate the amount of tax revenue needed to keep the economy stable, maintain or grow the infrastructure, and become unable to provide essential government services. After all, a smaller workforce means fewer contributions to retirement and social funds.

 Fortunately the annual U.S. immigration rate of 13.5% in 2017 compensates for the lower fertility rates.


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