Speaking of scalability…

Just read this on Bloomberg: http://www.bloomberg.com/news/2014-09-16/fewer-millennial-moms-show-u-s-birth-rate-drop-lasting.html

Is it just me, or is this a completely partial-equilibrium analysis?  I’m very happy to hear that more women are getting educated and entering the workforce, but I’m not sure enough is said about the negative effects of having fewer consumers in the future.  Basically, who will buy the products/services, in ever growing quantities, in future if there are fewer people?  Most of the West (and China) already has birthrates below replacement level…

The article gives a cursory nod to immigration – as if, by magic, baby-factories in developing countries will continue to grow the US population.  Will that be desired, or even tolerated, by a country which already seems hostile to increased immigration?



One thought on “Speaking of scalability…

  1. B. says:

    Maybe it is not a zero sum game. Where are there better margins, Lexus or Toyota?? Coach or Walmart bag?? Old Navy or Brooks Brothers?? My concern being a Boomer, is will there be enough young workers to pay my Entitlements in my old age?? Selfish old man, I am. B.


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