ROCKING OUR PRIORS How does Low Fertility Affect Economic Growth, Worldwide? Jesús Fernández-Villaverde
49 snips
Oct 2, 2024 Jesús Fernández-Villaverde, a renowned macro-economist, dives into the critical connection between low fertility rates and economic growth. He discusses the stark implications of Japan's demographic challenges, demographic shifts in aging populations, and their effects on pensions. The conversation also touches on the complexities surrounding technological advancements, like AI, and their impact on productivity. Fernández-Villaverde examines how societal changes affect women’s roles in the workforce and emphasizes the need for family-friendly policies to foster a supportive environment.
AI Snips
Chapters
Transcript
Episode notes
Working-Age Population & Growth
- Cross-country variation in economic growth is tightly linked to the working-age population size.
- Productivity per worker is similar across countries, but worker population growth differs greatly, impacting output.
Japan's Stagnation
- Japan's economic stagnation is not due to low productivity but a declining working-age population.
- Japan's worker population has shrunk while the U.S.'s has grown significantly, affecting total output.
AI's Impact on GDP
- AI can improve welfare but may not significantly boost GDP as it lowers production costs.
- Many AI-driven goods and services will be near-zero cost, not reflecting their true value in GDP calculations.