How a declining birth rate affects you

Home Blog How a declining birth rate affects you

At the recent NAFCD conference in Nashville, Fox Business News personality Stuart Varney gave his take on something we hear few, if any, people ever talking about, something that could affect us all: a declining global birth rate.

 

Birth rates have fallen very sharply throughout the developed world. It’s significant because it has fallen below replacement population levels. A 2.1 birth rate is required to keep the population stable. That means 2.1 live births per 1,000 women of child-bearing age. In many countries, it is as low as 1.2 or 1.3. In Scandinavia, the number is 1.5 or less. In the Iron Curtain it is 1.4. It’s worse in Asia: Japan, 1.3; Singapore, 1.1 and China, 0.9.

 

This means a significant swatch of the developed world–about 45 countries–is losing population as you read this. Hundreds of millions of people are deciding to have far fewer children. Germany will lose a quarter of its population in one generation. It’s also extreme in Japan where there are many older people and fewer babies.

Here’s why this matters. More people are living on retirement benefits of the fewer people who are working. And those people who are working are having fewer children. That’s a huge demographic problem. Consider it a “generational clash” between the ever-expanding seniors and the dwindling ranks of youngsters who’ll fund their retirements. Those retirees are living longer than ever, and they’ve been assured entitlement payouts.

 

Don’t think for one second it doesn’t affect us here in North America. It’s coming home to roost in this country in social security, Medicare, etc., which will soon eat up half of all collected tax revenues. There aren’t enough babies these days to save entire nations—let alone states including California and New York– from crushing debt and pension liabilities. States are becoming insolvent because of this demographic program.

 

Right now we are seeing retired state workers receiving massive pensions and living longer and longer. Varney’s research uncovered 10 San Diego public employees who’ll collect $61 million between them in the next 25 years; California firefighters retiring at 55 and taking in $284,000 in pension payments each year for life; and a nurse in Cincinnati who’ll earn $154,000 in annual pension income after making just $54,000 a year on the job.

Eight years from now, 55 of 100 adults will be 65 or older. That is not a functioning society. How can a society function with more than half its population retired? But he did sound a hopeful note. The U.S. has a higher birth rate and lower ratio of seniors to youngsters than just about any other industrialized country. While that number is 52% in Germany and 51% in France, in the U.S. the number is only 29%. We are still a young, vigorous, dynamic, innovate society. But it’s not because women today are having more children. It is the result of immigration. As Varney put it, “Eager, young baby makers that flee north of the border change our demographics.”

Something to think about.

 

Must Read

Emser releases new tile product catalog

Los Angeles—Emser Tile announced its complete suite of products with a new 2022/2023 tile product catalog, available both in print and online. According to the...

NWFA builds 64th R.I.S.E. home

St. louis, Miss.—The National Wood Flooring Association (NWFA) provided flooring for its 64th home in support of the Gary Sinise Foundation R.I.S.E. program (Restoring...

Karndean named a ‘Pittsburgh Top Workplace’

Export, Pa.—The U.S. corporate headquarters of leading luxury vinyl supplier, Karndean Designflooring, has been named a Pittsburgh-area “Top Workplace” for the 11th consecutive year...

Walking homeowners through design trade-offs

(This article was originally published on Houzz.com and has been edited for content and style.) While homeowners may be prepared to prioritize certain elements and...

Interface meets carbon neutral status

Atlanta—Interface said it has been third-party certified as a Carbon Neutral Enterprise. The company said it met Carbon Neutral Enterprise status according to the...

RFCI holds annual fall meetings

Atlanta—The Resilient Floor Covering Institute (RFCI) held its fall in-person meetings for two of its key committees here last week. According to RFCI, the...
Some text some message..
X