{"id":83108,"date":"2024-08-10T21:43:22","date_gmt":"2024-08-10T21:43:22","guid":{"rendered":"https:\/\/neclink.com\/index.php\/2024\/08\/10\/the-problem-with-pronatalism-pushing-baby-booms-to-boost-economic-growth-amounts-to-a-ponzi-scheme\/"},"modified":"2024-08-10T21:43:22","modified_gmt":"2024-08-10T21:43:22","slug":"the-problem-with-pronatalism-pushing-baby-booms-to-boost-economic-growth-amounts-to-a-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/neclink.com\/index.php\/2024\/08\/10\/the-problem-with-pronatalism-pushing-baby-booms-to-boost-economic-growth-amounts-to-a-ponzi-scheme\/","title":{"rendered":"The Problem with Pronatalism: Pushing Baby Booms to Boost Economic Growth Amounts to a Ponzi Scheme"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Yves here. We\u2019ve posted from time to time on alarmed media stories about how birthrates are declining around the world and at a faster rate than expected, particularly in advanced economies. The subtext is we need growth in population to have groaf, when growth is a function of both population and productivity increases. And of course, there is the elephant in the room of human consumption levels, particularly as standards of living have been rising, producing unsustainable demand for resources.<\/p>\n<p>Japan in particular has tried to increase baby production, with no success. This post usefully takes on the idea that low birth rates are a problem in and of themselves.<\/p>\n<p><em><strong>By Emily Klancher Merchant, Assistant Professor of Science and Technology Studies, University of California, Davis and Win Brown, Research Affiliate, Center for Studies in Demography and Ecology, University of Washington. Originally published at <a href=\"https:\/\/theconversation.com\/the-problem-with-pronatalism-pushing-baby-booms-to-boost-economic-growth-amounts-to-a-ponzi-scheme-235725\" rel=\"nofollow noopener\" target=\"_blank\">The Conversation<\/a><\/strong><\/em><\/p>\n<p>In the face of <a href=\"https:\/\/www.economist.com\/finance-and-economics\/2024\/05\/23\/shrinking-populations-mean-a-poorer-more-fractious-world\" target=\"_blank\" rel=\"nofollow noopener\">shrinking populations<\/a>, many of the world\u2019s major economies are trying to engineer higher birth rates.<\/p>\n<p>Policymakers from <a href=\"https:\/\/www.npr.org\/2023\/03\/19\/1163341684\/south-korea-fertility-rate\" target=\"_blank\" rel=\"nofollow noopener\">South Korea<\/a>, <a href=\"https:\/\/www.dw.com\/en\/will-japans-new-plan-to-boost-birth-rates-work\/a-64091588\" target=\"_blank\" rel=\"nofollow noopener\">Japan<\/a> and <a href=\"http:\/\/www.xinhuanet.com\/english\/2018-11\/15\/c_129994412.htm\" target=\"_blank\" rel=\"nofollow noopener\">Italy<\/a>, for example, have all adopted so-called \u201c<a href=\"https:\/\/www.populationmedia.org\/the-latest\/what-is-pronatalism-the-podcast\" target=\"_blank\" rel=\"nofollow noopener\">pronatalist\u201d measures<\/a> in the belief that doing so will defuse a demographic time bomb. These range from tax breaks and housing benefits for couples who have children to subsidies for fertility treatments.<\/p>\n<p>But here\u2019s the thing: Low \u2013 or, for that matter high \u2013 birth rates are not a problem in and of themselves. Rather, they are perceived as a cause of or contributor to other problems: With low birth rates come <a href=\"https:\/\/www.heritage.org\/budget-and-spending\/heritage-explains\/the-birthrate-decline-and-the-economy\" target=\"_blank\" rel=\"nofollow noopener\">slow economic growth<\/a> and a <a href=\"https:\/\/www.imf.org\/external\/pubs\/ft\/fandd\/2006\/09\/turner.htm\" target=\"_blank\" rel=\"nofollow noopener\">top-heavy age structure<\/a>; high birth rates mean <a href=\"https:\/\/doi.org\/10.1007\/s41748-021-00209-6\" target=\"_blank\" rel=\"nofollow noopener\">resource depletion<\/a> and <a href=\"https:\/\/www.un.org\/en\/desa\/population-growth-environmental-degradation-and-climate-change\" target=\"_blank\" rel=\"nofollow noopener\">environmental degradation<\/a>.<\/p>\n<p>Moreover, birth rates are <a href=\"https:\/\/www.vox.com\/23971366\/declining-birth-rate-fertility-babies-children\" target=\"_blank\" rel=\"nofollow noopener\">notoriously hard to change<\/a>, and efforts to do so often become coercive, even if they don\u2019t start out that way.<\/p>\n<p>As <a href=\"https:\/\/sts.ucdavis.edu\/people\/emily-merchant\" target=\"_blank\" rel=\"nofollow noopener\">demographers<\/a> <a href=\"https:\/\/csde.washington.edu\/affiliates\/win-brown\/\" target=\"_blank\" rel=\"nofollow noopener\">and population experts<\/a>, we also know that such efforts are usually unnecessary. Manipulating fertility is an inefficient means of solving social, economic and environmental problems that are almost always better addressed more directly through regulation and redistribution.<\/p>\n<p><b>A New Pronatalist Movement<\/b><\/p>\n<p>According to the most likely scenario, <a href=\"https:\/\/population.un.org\/wpp\/\" target=\"_blank\" rel=\"nofollow noopener\">the world\u2019s population<\/a> will peak around the beginning of 2084 at about 10.3 billion people \u2013 approximately 2 billion more than we have today. After that, the global population is projected to stop growing and will likely shrink to just below 10.2 billion by 2100.<\/p>\n<p>Yet many countries are already ahead of this curve, with <a href=\"https:\/\/worldpopulationreview.com\/country-rankings\/countries-with-declining-population\" target=\"_blank\" rel=\"nofollow noopener\">populations predicted to decline<\/a> in the next decade. And that has prompted concerns among some nations\u2019 economists over economic growth and old-age support. In some instances, it has also prompted nativist fears about \u201c<a href=\"https:\/\/theconversation.com\/what-is-the-great-replacement-theory-a-scholar-of-race-relations-explains-224835\" target=\"_blank\" rel=\"nofollow noopener\">replacement\u201d through immigration<\/a>.<\/p>\n<p>As of 2019, 55 countries \u2013 mainly in Asia, Europe and the Middle East \u2013 had <a href=\"https:\/\/www.un.org\/development\/desa\/pd\/content\/world-population-policies-2021-highlights\" target=\"_blank\" rel=\"nofollow noopener\">explicit policies aimed at raising birth rates<\/a>.<\/p>\n<p>The U.S. does have <a href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/child-tax-credit\" target=\"_blank\" rel=\"nofollow noopener\">a child tax credit<\/a> but no policies directly aimed at raising birth rates, according to the U.N., which <a href=\"https:\/\/www.un.org\/development\/desa\/pd\/sites\/www.un.org.development.desa.pd\/files\/undesa_pd_2021_wpp-fertility_policies.pdf\" target=\"_blank\" rel=\"nofollow noopener\">tracks population policies worldwide<\/a>.<\/p>\n<p>Even so, in recent years a <a href=\"https:\/\/www.politico.com\/news\/magazine\/2024\/04\/28\/natalism-conference-austin-00150338\" target=\"_blank\" rel=\"nofollow noopener\">new pronatalist movement<\/a> has emerged in the U.S., drawing heavily from a range of ideologies, including <a href=\"https:\/\/theconversation.com\/pronatalism-is-the-latest-silicon-valley-trend-what-is-it-and-why-is-it-disturbing-231059\" target=\"_blank\" rel=\"nofollow noopener\">racism, nativism, neoliberalism, effective altruism and longtermism<\/a>.<\/p>\n<p>Among the voices pushing for pronatalist policies are <a href=\"https:\/\/www.bloomberg.com\/features\/2024-elon-musk-population-collapse-baby-push\/\" target=\"_blank\" rel=\"nofollow noopener\">Elon Musk<\/a>and influencers <a href=\"https:\/\/www.theguardian.com\/lifeandstyle\/article\/2024\/may\/25\/american-pronatalists-malcolm-and-simone-collins\" target=\"_blank\" rel=\"nofollow noopener\">Malcolm and Simone Collins<\/a>, who warn that the human population <a href=\"https:\/\/www.bloomberg.com\/opinion\/articles\/2024-03-10\/global-population-collapse-isn-t-sci-fi-anymore-niall-ferguson\" target=\"_blank\" rel=\"nofollow noopener\">is on the verge of collapse<\/a>.<\/p>\n<p>Republican presidential nominee Donald Trump <a href=\"https:\/\/www.washingtonpost.com\/politics\/2023\/03\/09\/trump-baby-boom-immigration\/\" target=\"_blank\" rel=\"nofollow noopener\">has indicated he wants<\/a> <a href=\"https:\/\/www.economist.com\/leaders\/2024\/05\/23\/why-paying-women-to-have-more-babies-wont-work\" target=\"_blank\" rel=\"nofollow noopener\">incentives for women to have more babies<\/a>, and his running mate, JD Vance, has been a rare voice on the floor of Congress <a href=\"https:\/\/www.vox.com\/policy\/363543\/pronatalism-vance-birth-rates-population-decline-fertility\" target=\"_blank\" rel=\"nofollow noopener\">warning of a U.S. baby bust<\/a>.<\/p>\n<p><b>New Babies to Solve Old Problems<\/b><\/p>\n<p>The pronatalist movement is, we believe, inherently misguided. It is premised on the belief that ever-larger populations are needed to spur economic growth, which alone will lift individuals and communities out of poverty.<\/p>\n<p>But absent direct state intervention, this <a href=\"https:\/\/business.columbia.edu\/sites\/default\/files-efs\/imce-uploads\/Joseph_Stiglitz\/Inequality%20and%20Economic%20Growth_0.pdf\" target=\"_blank\" rel=\"nofollow noopener\">additional wealth generally<\/a> <a href=\"https:\/\/apps.urban.org\/features\/wealth-inequality-charts\/\" target=\"_blank\" rel=\"nofollow noopener\">accrues to those with established higher incomes<\/a>, often at the expense of workers and consumers.<\/p>\n<p>Seen this way, pronatalism is a <a href=\"https:\/\/www.investopedia.com\/terms\/p\/ponzischeme.asp#:%7E:text=A%20Ponzi%20scheme%20is%20an,returns%20earned%20by%20early%20investors\" target=\"_blank\" rel=\"nofollow noopener\">Ponzi scheme<\/a>. It relies on new entrants to produce returns for earlier investors, with the burdens <a href=\"https:\/\/www.penguinrandomhouse.com\/books\/697130\/holding-it-together-by-jessica-calarco\/\" target=\"_blank\" rel=\"nofollow noopener\">falling most heavily on women<\/a>, who are responsible for the bulk of childbearing and child-rearing, often without adequate medical care or affordable child care.<\/p>\n<p><b>Government Intervention in Reproduction<\/b><\/p>\n<p>For nearly a century, governments have used access to birth control and abortion as levers with which to try to adjust their population growth rates, but usually in the other direction: making birth control and abortion more widely available \u2013 and often pushing them on people who wanted more children \u2013 <a href=\"https:\/\/www.haymarketbooks.org\/books\/1050-reproductive-rights-and-wrongs\" target=\"_blank\" rel=\"nofollow noopener\">when birth rates were deemed too high<\/a>. Such policies were implemented in numerous countries between the 1960s and 1990s to stimulate economic growth, with <a href=\"https:\/\/www.npr.org\/2021\/06\/21\/1008656293\/the-legacy-of-the-lasting-effects-of-chinas-1-child-policy\" target=\"_blank\" rel=\"nofollow noopener\">China\u2019s one-child policy<\/a> the most extreme example. Ironically, while high birth rates were <a href=\"https:\/\/global.oup.com\/academic\/product\/building-the-population-bomb-9780197558942\" target=\"_blank\" rel=\"nofollow noopener\">once seen as a barrier to economic development<\/a>, today low birth rates are seen as a drag on economic growth.<\/p>\n<p>Advocates of efforts to reduce birth rates have pointed to the beneficial effects of family planning services. But critics warn that <a href=\"https:\/\/global.oup.com\/academic\/product\/building-the-population-bomb-9780197558942\" target=\"_blank\" rel=\"nofollow noopener\">instrumentalizing reproductive health care<\/a> \u2013 offering it as a means to the end of slowing population growth rather than an end in itself \u2013 makes it vulnerable to being taken away if population growth is deemed too slow.<\/p>\n<p>Indeed, several of the countries that now restrict access to birth control and abortion, including South Korea and Iran, once promoted them in order to reduce their birth rate.<\/p>\n<p>In 1968, the <a href=\"https:\/\/www.unfpa.org\/events\/international-conference-human-rights\" target=\"_blank\" rel=\"nofollow noopener\">International Conference on Human Rights<\/a> declared that couples had the right to decide the number and spacing of their children. At that time, the growth of the world\u2019s population was at its all-time high of just over 2% per year.<\/p>\n<p>But if humans have the inherent right to control their reproductive lives, it follows that governments need to protect that right when birth rates are low as well as when they are high. It is, in our view, incumbent on policymakers to use other interventions to reach economic and social goals.<\/p>\n<p>And these more direct approaches can be effective. For example, in the U.S., we saw child poverty cut in half during the COVID-19 pandemic as a result of a higher tax credit, <a href=\"https:\/\/www.cbpp.org\/press\/statements\/record-rise-in-poverty-highlights-importance-of-child-tax-credit-health-coverage\" target=\"_blank\" rel=\"nofollow noopener\">only to return to pre-COVID-19 levels<\/a> when Congress allowed the supplemental credit to lapse.<\/p>\n<p><b>Little Effect on Birth Rates<\/b><\/p>\n<p>To date, pronatalist policies have largely focused on subsidizing the cost of child-rearing and helping parents remain in the labor force.<\/p>\n<p>While enormously beneficial to parents and children, such policies have had little effect on birth rates. For example, Italy\u2019s <a href=\"https:\/\/www.thelocal.it\/20200612\/what-you-need-to-know-about-italys-new-family-act\" target=\"_blank\" rel=\"nofollow noopener\">2020 Family Act<\/a> \u2013 a comprehensive program that provides family allowances, increases paternity leave, supplements the salaries of mothers and subsidizes child care \u2013 has not stemmed the country\u2019s <a href=\"https:\/\/www.euronews.com\/my-europe\/2024\/05\/10\/italys-falling-birth-rate-is-a-crisis-thats-only-getting-worse\" target=\"_blank\" rel=\"nofollow noopener\">falling fertility rate<\/a>.<\/p>\n<p>As fertility rates continue to drop, and as popular anxiety about population collapse heightens, governments are beginning to take more draconian measures. Along with promoting assisted reproductive technologies, <a href=\"https:\/\/doi.org\/10.1080\/26410397.2019.1610278\" target=\"_blank\" rel=\"nofollow noopener\">South Korea banned abortion in 2005<\/a>. China\u2019s State Council recently announced <a href=\"https:\/\/www.hrw.org\/news\/2021\/09\/27\/beijing-reduce-non-medically-necessary-abortions\" target=\"_blank\" rel=\"nofollow noopener\">the goal of \u201creducing non-medically necessary abortions,\u201d<\/a> supposedly to promote \u201cwomen\u2019s development.\u201d<\/p>\n<p>Around the same time, <a href=\"https:\/\/doi.org\/10.1080\/26410397.2023.2257075\" target=\"_blank\" rel=\"nofollow noopener\">Iran severely restricted access<\/a> to abortion, sterilization and contraception for the express purpose of increasing the birth rate.<\/p>\n<p><b>Borrowing from the Future<\/b><\/p>\n<p>Those who deny racist, nativist or religious intentions in promoting pronatalism \u2013 especially in the U.S. \u2013 usually advocate for it on economic grounds.<\/p>\n<p>Their reasoning is that declining fertility produces a top-heavy age structure. In the U.S. context, this means a large number of elderly people collecting Social Security relative to the number of working people paying into the system.<\/p>\n<p>Experts have been projecting the <a href=\"https:\/\/www.ml.com\/articles\/can-social-security-insolvency-be-fixed.html\" target=\"_blank\" rel=\"nofollow noopener\">insolvency of Social Security<\/a>for decades. But the truth is that the U.S. does not need more babies to keep Social Security afloat. Rather, policymakers can increase the size of the working-age population through pro-immigration policies and can increase the amount of money flowing into Social Security by lifting the <a href=\"https:\/\/www.ssa.gov\/benefits\/retirement\/planner\/whileworking.html\" target=\"_blank\" rel=\"nofollow noopener\">income cap on contributions<\/a>.<\/p>\n<p>Governments can provide education, contraception and other health care services, not because doing so will reduce birth rates but because these are vital components of a progressive, fair-minded society. And they can provide parental leave, child tax credits and high-quality child care, not because doing so will increase birth rates but because it will help the children who are born get the best possible start in life.<\/p>\n<p>Seen through this lens, pronatalism offers a hollow-ringing promise that simply having more people will solve social and economic problems faced by a nation\u2019s current population. But that amounts to borrowing from the future to pay the debts of the past.<\/p>\n<p><em><a href=\"https:\/\/hardeeassociates.com\/\" target=\"_blank\" rel=\"nofollow noopener\">Karen Hardee<\/a>, an independent social demographer, contributed to this article.<\/em><\/p>\n<div class=\"printfriendly pf-alignleft\"><a href=\"#\" rel=\"nofollow\" onclick=\"window.print(); return false;\" title=\"Printer Friendly, PDF &amp; Email\"><img decoding=\"async\" style=\"border:none;-webkit-box-shadow:none; -moz-box-shadow: none; box-shadow:none; padding:0; margin:0\" src=\"https:\/\/cdn.printfriendly.com\/buttons\/print-button-gray.png\" alt=\"Print Friendly, PDF &amp; Email\"\/><\/a><\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.nakedcapitalism.com\/2024\/08\/the-problem-with-pronatalism-pushing-baby-booms-to-boost-economic-growth-amounts-to-a-ponzi-scheme.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yves here. We\u2019ve posted from time to time on alarmed media stories about how birthrates are declining around the world and at a faster rate<\/p>\n","protected":false},"author":1,"featured_media":83109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[153,183],"tags":[],"class_list":["post-83108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-spotlight"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/83108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/comments?post=83108"}],"version-history":[{"count":0,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/83108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media\/83109"}],"wp:attachment":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media?parent=83108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/categories?post=83108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/tags?post=83108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}