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"GLOBAL ISSUES, LEADERSHIP CHOICES":

8/28/2019

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After 200 years of ballooning human populations, birth rates have fallen significantly in much of the world, with absolute population declines on the horizon for some countries. Although this may be good news on some fronts, as this book review from Foreign Affairs suggests, the economic impact of these demographic shifts should not be underestimated.

"Just as much of the world has come to see rapid population growth as normal and expected, the trends are shifting again, this time into reverse. Most parts of the world are witnessing sharp and sudden contractions in either birthrates or absolute population. The only thing preventing the population in many countries from shrinking more quickly is that death rates are also falling, because people everywhere are living longer. These oscillations are not easy for any society to manage. 'Rapid population acceleration and deceleration send shockwaves around the world wherever they occur and have shaped history in ways that are rarely appreciated,' the demographer Paul Morland writes in The Human Tide, his new history of demographics. ...

"Governments worldwide have evolved to meet the challenge of managing more people, not fewer and not older. Capitalism as a system is particularly vulnerable to a world of less population expansion; a significant portion of the economic growth that has driven capitalism over the past several centuries may have been simply a derivative of more people and younger people consuming more stuff. If the world ahead has fewer people, will there be any real economic growth? We are not only unprepared to answer that question; we are not even starting to ask it. ... Capitalism is, essentially, a system that maximizes more—more output, more goods, and more services. That makes sense, given that it evolved coincidentally with a population surge. ... If global population stops expanding and then contracts, capitalism—a system implicitly predicated on ever-burgeoning numbers of people—will likely not be able to thrive in its current form. ... As growth grinds to a halt, people may well start demanding a new and different economic system. Add in the effects of automation and artificial intelligence, which are already making millions of jobs redundant, and the result is likely a future in which capitalism is increasingly passé.
"
www.foreignaffairs.com/reviews/review-essay/2019-08-12/population-bust
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