The Demographic Crisis and Its Economic Consequences

Many advanced economies are experiencing a significant decline in birth rates, leading to a demographic crisis that could shrink populations. This decline raises concerns among economists about the long-term implications for economic systems that rely on a growing workforce and consumer base. Governments are experimenting with drastic measures such as financial incentives for childbirth, which could cost trillions but often produce mixed results. These initiatives raise questions about the effectiveness of using monetary policies to combat a trend that may be more complex than simple incentives can address.