Demographics as Destiny

by Laura Ehrenberg-Chesler on May 10, 2012

in deficit spending,Employment

This morning my partner Marilou posted a Tweet about the aging population in Japan. As a result of this demographic shift, there will not be enough young people to replace the older generation as they move into retirement. One anectdote from an article today in Bloomberg reports that, for the first time, sales of adult diapers exceeded the sales of baby diapers. Compared to the Japanese fertility rate for women, which is

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1.39, the fertility rate in the United States is 1.93. So, we are barely replacing ourselves. This will be a critical factor when our government finally decides to take steps to reign in our deficit, and take a hard look at the long term viability of Social Security.  

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