FAST FIVE: US Births Hit 35-Year Low; Corona-Pessimism Could Ensure Permanent Japanification
US Births Hit 35-Year Low; Corona-Pessimism Could Ensure Permanent Japanification Tyler Durden Fri, 05/22/2020 – 22:45 The number of children born in the United States has hit a 35-year low, new federal data presents, suggesting America could sink to Japan-level numbers not just in capital markets but in a baby bust.
The fresh data points to the great likelihood the post-Great Recession decline in births is to stay permanent.
“They're just holding off until a later point in time until they establish their education and establish their career.” Given the economic fallout from the coronavirus pandemic, predicted to last over at least the next few years, the WSJ report forecasts a declining national birthrate similar to the period of the Great Depression.
Now, demographers tracking the declining birth rate say the trend is beginning to look like a longer-term pattern.
It appears millennials, generally less financially secure than generations before, are on the whole moving much slower in establishing families. Recall that in 2008 when Japan's birth rate fell to 1.34 average number children a woman had in her lifetime, drastic social policies were undertaken on the realization of the long-term economic stagnation or worse would result if the trend weren't immediately reversed (combined with the “super-aged” nation having over 20% of its population older than 65). In 2008, Japan's birth rate was so low that workers were told to go home early and use their remaining energy to procreate.